By: Heba El-Kordy

Cairo – Mubasher: The Egyptian Exchange (EGX) is expected to maintain its correction until it tests 16,700 points and rebound to resistance levels and recreate new purchasing positions, analysts told Mubasher.

Trading in the first week of June will take place between 16,400 and 16,700 points, branch manager at Mubasher Financial Services (MFS) Safwat Abdel Naeem.

The benchmark EGX30 is likely to carry on seeing rebound this month until it tests 17,700 points if the index surpassed the aforementioned level, Abdel Naeem highlighted.

The small- and mid-cap EGX70 index has a long-term support at 838 points and is expected to rebound at 860 points this week, he added.

For his part, head of relations manager at Arabeya Online Michael Mamdouh Naguib said that the EGX is targeting 16,500 points after breaking 16,900 points.

Correction phase is projected to end in the first two sessions of the current week, he pointed out, adding that the EGX has support at 16,570, 16,500, 16,445, and 16,400 points.

Naguib noted that many of the blue-chip stocks have reached selling saturation that supports ending correction.

Translated by: Mai Ezz El-Din