Optimism at Egyptian Exchange performance though experts recommend caution

A state of optimism at the performance of the Egyptian Exchange (EGX) is dominating investors’ dealings. This comes despite the warnings of capital market experts that this optimism should be cautious, due to market fluctuations and the possibility of a bounce down.

In this week’s trading, the EGX is testing the chances of following through, with high trading volumes, on its upward trend to go beyond the 11,500 point resistance level. This follows the benchmark index EGX30 falling just short of this level in previous trading sessions.

Mohamed Othman, head of the Technical Analysis Department at Pharos Holding, said, “Currently, the Index [EGX30] is approaching the major resistance area of between 11,420 and 11,500 points.”