EGX30 to rebound to 15000pts inFebruary: analysts

Sunday 03 February 2019 12:31 PM

Egyptian Stock Exchange
Egyptian Stock Exchange

By Mona Abd El-Bary

The Egyptian Stock Exchange rebounded in January with the benchmark EGX30 main index  and market capitalization edging up, as analysts expect EGX30 to pursue its winning streak in February on the backdrop of positive moves led by the bue chips.

EGX30 rose last month by 8.4 percent to 14126pts, boosting its gains by EGP43bn to EGP793bn up from EGP750bn late December.

However, EGX70 fell by 1.4 percent to 683pts and the broader EGX100 by 0.25 percent to 1722pts.

" EGX30 is likely to hover around 14850pts and 15000pts in February on the backdrop of moves led by stocks of real estate companies and the blue chips," said head of technical analysis at Aman Securities Mohmed El-Aaser.

" The upcoming meeting of the Central Bank of Egypt's Monetary Policy Committee, slated for February 14, can impact  EGX's moves during the second half of the month," said managing director Ihab Saad at Osool Securities Ihab Saad, predicting EGX30 to move between 14600, 14800 and15000pts. In case CBE approves a cut in interest rates, EGX30 and EGX70 will rally to 15000pts, 685pts or EGP695pts, respectively, he added.

Stocks of the blue chips will move up during the month, pushing EFG-Hermes to EGP18.50, Sewedy Electric to EGP20, Global Telecom to EGP5, Talaat Mostafa Holding to EGP12 and Commercial International Bank to EGP84, he said.