After the thirtieth index reached the levels of 9500 points, affected by the successive crises of the repercussions of the Corona virus and the exit of hot money after the beginning of the Federal Reserve interest rate hike. The Egyptian stock market was suffering from severe frustration until the signs of breakthrough appeared from the first of October and November of the year 2022.
A strong recovery phase has begun that shows in the Egyptian financial markets some stability of the international community's confidence in the Egyptian economy, the success of negotiations between those in charge of the state's monetary and financial policies with the IMF and others, and the beginning of financial flows to the Egyptian economy. This pushed the main index of the Egyptian Exchange to reach the level of 17678.453, approaching its highest level since 2018 at 18364.984.
Hence the questions began to revolve around whether it is possible to reach the 19,000 level or is it a distant dream that comes about half a decade ago. The answer lies in the fact that monetary tightening by the Central Bank of Egypt is still in place to contain the price crisis and inflation and the waves of interest rate hikes attract a large fiscal liquidity.
Even with the latest 22% certificates, banks absorbed cash amounting to 162 billion pounds in four days. However, decreasing interest certificates have emerged, which is seen as monetary tightening will calm down a bit and focus on the stability of the pound's exchange rate, which has a major role in the strong decline in inflation, as we witnessed in the second half of 2017.
Hence the dream of the stock exchange in everyone's imagination, as government offerings, stable interest rates, stable exchange rate and the reversal cycle of liquidity may reach the Egyptian stock index to above 20,000 points.
As for the technical analysis of the index - the index has strong support at two points at 15284.215, which is considered central support and above it support for Fibo 23 at 15549.447
Either targeting the 18364.984 point or the occasional movement between the levels of 17678.453 and 15427.629
A strong recovery phase has begun that shows in the Egyptian financial markets some stability of the international community's confidence in the Egyptian economy, the success of negotiations between those in charge of the state's monetary and financial policies with the IMF and others, and the beginning of financial flows to the Egyptian economy. This pushed the main index of the Egyptian Exchange to reach the level of 17678.453, approaching its highest level since 2018 at 18364.984.
Hence the questions began to revolve around whether it is possible to reach the 19,000 level or is it a distant dream that comes about half a decade ago. The answer lies in the fact that monetary tightening by the Central Bank of Egypt is still in place to contain the price crisis and inflation and the waves of interest rate hikes attract a large fiscal liquidity.
Even with the latest 22% certificates, banks absorbed cash amounting to 162 billion pounds in four days. However, decreasing interest certificates have emerged, which is seen as monetary tightening will calm down a bit and focus on the stability of the pound's exchange rate, which has a major role in the strong decline in inflation, as we witnessed in the second half of 2017.
Hence the dream of the stock exchange in everyone's imagination, as government offerings, stable interest rates, stable exchange rate and the reversal cycle of liquidity may reach the Egyptian stock index to above 20,000 points.
As for the technical analysis of the index - the index has strong support at two points at 15284.215, which is considered central support and above it support for Fibo 23 at 15549.447
Either targeting the 18364.984 point or the occasional movement between the levels of 17678.453 and 15427.629
