HC Egypt Technical Analysis Daily Report 4 June 2008

Trend Status Summary

Trend Status                  Current           Forecast

MT trend                        Bullish            Bullish

ST trend                         Flat               Bullish

Previous Session Highlights

Following Monday’s bearish performance, the

market started off the session on a notable

negative note but, with low volumes. However,

the weak selling pressure gave way to buying

power which caused the market to regain most

of its losses. As a result, the CASE30 closed at

10,862, while volumes reached 24.7 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 minor profit taking activity

at current levels that may lead the index to

10,600. Nevertheless, our outlook remains bullish

for the market.

Update on Suggested Trading Tactic

Accordingly, we advise investors who have

already locked-in some short term profits to hold

remaining portions. An ideal portfolio exposure at

this point would be 65% to 75% in equity