HC Egypt Technical Analysis Daily Report 2 June 2008

Trend Status Summary

Trend Status               Current           Forecast

MT trend                     Bullish             Bullish

ST trend                     Bullish             Bullish

Previous Session Highlights

The market started off this week on a flat note

accompanied with low trading volumes. As a

result, the CASE30 closed at 11,028, while

volumes reached 23.3 million shares.

Update on Expected Scenario

Confirming our view, the CASE30 index has

recovered and is currently trading within the

11,100 – 11,300 range. We believe that the

market may find some profit taking activity at

current levels.

Update on Suggested Trading Tactic

Accordingly, we advise investors to reduce some

of their long positions in order to lock-in and

realize some short term profits.

An ideal portfolio exposure at this point would be

65% to 75% in equity.

The market declined in Sunday's session, with the CASE30 Index losing 0.3% to reach 11,028.43 points, on a high turnover of E£2.31 billion (US$432.67 million).

Institutional investors accounted for 49% of the market trading for the day, while retail investors accounted for the remaining 51%. Institutional investors were net sellers while retail investors were net buyers, with negligible differences between the buying and selling proportions for each. Local traders dominated the market trading with 88%, while foreign and Arab traders accounted for only 12%. Local and Arab investors were net sellers, while foreign investors emerged as net buyers.