Weak purchasing power remains the biggest challenge for the Egyptian stock market at the current time, pending any positive news or stimuli to open dealers’ appetite to trade a gain.
In case the purchasing power failed to drive the Egyptian Exchange (EGX) above the level of 11,288 points once again, the market would be vulnerable to further decline according to Mohamed Osman, Head of Technical Analysis at Pharos Holding.
“Meanwhile, we believe that the support area lies between 11,100-11,200 points, which should resist any further selling pressure,” Osman added.
According to the current performance and the weakness of purchasing power, Osman said that Pharos Holding’s conservative point of view remains intact, until a consistent purchasing power reappears.
As a result, a rebound off the latter levels should be seen as a chance to reduce exposures at relatively better levels. Osman noted that the first resistance level lies at 11,500 points, followed by 11,675 points.
