Mubasher TV
Contact Us Advertising   العربية

EGX may rise this week on CBE’s interest rate decision - Analysts

EGX may rise this week on CBE’s interest rate decision - Analysts
Trading volumes are expected to rise this week

By: Heba El-Kordy

Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to resume the upward trend this week on the back of the Central Bank of Egypt’s (CBE) recent decision regarding interest rates, analysts told Muabsher.

The CBE’s Monetary Policy Committee (MPC) had decided during their meeting last Thursday to keep the interest rates unchanged.

The MPC maintained the overnight deposit and lending rates unchanged at 16.7% and 17.7%, respectively, whereas the rate of both the main operation and the discount rate were kept at 17.25%.

The benchmark EGX30 index may close this week above 14,000 points, branch manager at Mubasher Financial Services Safwat Abdel Naeem said.

The Egyptian stock market is expected to see a bullish trend this week on the back of the positive economic news and the solid financial results that will boost liquidity in most blue-chip stocks, Abdel Naeem indicated.

Trading volumes are expected to rise this week with a turnover averaging between EGP 1 billion to EGP 1.5 billion per session, he projected.

The EGX ended last week in red territory amid traders’ anticipation to the CBE’s decision regarding interest rates.

For his part, Saeed El Feki, branch manager of Osool ESB Securities Brokerage, said that the EGX is likely to maintain the volatile trend until the positive news pushes the market higher.

The indices of the local bourse are likely to surpass their resistance levels this week, supported by the CBE’s recent decision, El Feki added.

He noted that the EGX30 index may break resistance at 13,850 points and target 14,150 points.

Additionally, the small- and mid-cap EGX70 index is still seeing accumulation and is likely to rise and surpass resistance at 705 points and hover around 715 points, El Feki pointed out.

Translated by: Mai Ezz El-Din