Egypt stock market to move sideways

Egypt stock market is expected by analysts to move sideways as turmoil in emerging markets is sending shiver among investors after the Central Bank of Turkey raised the interest rates to 24% in a bid to bolster its currency.


The last few months have seen a massive sell-off in Egypt stock market assets thanks to investor fears over a wider emerging markets shakeup.


“The market could move sideways in the few coming sessions awaiting any signs that turmoil hitting emerging market will finally come to an end,” said, analyst Sameh Gharib of Roots Brokerage.


The Egyptian Exchange (EGX) saw a negative performance in the second week of September, which had only four trading sessions as Tuesday market marks the beginning of the New Islamic year holiday.


The benchmark index EGX 30 declined by 3.12% or 494.5 points and closed at the level of 15,308.62 points.
Concerns regarding a drop in the currencies of emerging markets and selling pressures drove the index down after falling to surpass resistance at 16,000 points, Gharib added.


The main index continues to move horizontally between 15,000 and 16,000 points, maintaining support at 15,250 and 15,000.