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EGX likely to rebound Tuesday – Analyst

EGX likely to rebound Tuesday – Analyst
The Egyptian Exchange (Photo credit: Mubasher)

Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to rebound on Tuesday after the sharp decline witnessed during Monday’s session due to the Central Bank of Egypt’s (CBE) unexpected decision to raise interest rates by 200 basis points, an analyst told Mubasher.

Technical analyst Ayman Fouda said that the EGX’s indices ended Monday’s trading on a negative note, and the market capitalisation lost EGP 15 billion as a result of raising interest rates, in an attempt by the CBE to cut inflation rates.

Fouda noted that the benchmark EGX30 index has broken below a number of key resistance levels, expecting the indices to retest near resistances.

The main index is forecast to face short-term resistances at 12,840 and 12,970 points, and has supports at 12,850 and 12,525 points, Fouda said.

The small- and medium-sized enterprises index EGX70 is likely to face resistances at 588 and 594 points, and has supports at 577 and 570 points, the analyst added.

The main gauge slipped on Monday by 2.52% or 326.51 points to the level of 12,648.24 points. The EGX70 and EGX100 indices also shrank by 1.67% and 1.81%, respectively.