EGX30 soars boosted by blue chips this week
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The indexes of the Egyptian Exchange (EGX) showed a mixed performance this week, with the benchmark index EGX30 edging 3.9 percent to close at 8,459 points, its highest level in five and half years, while the market capital incurred a 1.2 billion EGP loss.

In turn, the small and mid-cap index EGX70 fell 2.68 percent to end the week at 633 points, compared to 651 points at the end of last week. The broader index EGX100 closed 0.99 percent down this week, at 1,104 points.

Market capitalization lost more than EGP 1.2 billion to reach 490.4 billion EGP, compared to 491.6 billion EGP last week.

“The benchmark exceeded the 8,200 barrier this week to target 8,500 points, achieving a new price level at 8,459 points, which has not been reached since September 2008,” Ehab al-Saeed, head of research at Osool ESB Securities Brokerage, told The Cairo Post.

He explained that EGX30 was boosted by the positive performance of most blue chips, topped by CIB and Global Telecom.

Turnover slightly rose to range between 880 million EGP and 1.2 billion EGP in most of the week’s sessions, but rose on Thursday to its highest level in three years, which drove average daily turnover to 1257 million EGP; its highest level in five years, Saeed detailed.

However, EGX70 failed to cross the previous resistance level of 666 points and slid towards 633 points, due to profit taking on some small and mid-cap stocks as well as the random movement of heaviest weight share of Orascom Construction Industries (OCI), added the technical analyst.

Saeed also indicated that the stock market was not hurt this week by the protests staged at universities. “Investors are awaiting a decision from Defense Minister Abdel Fatah El-Sisi to announce his bid for presidency,” he added.

During the course of the week, the real estate shares were spurred by the announcement from UAE’s Emaar about considering an initial public offering (IPO) for its Egyptian subsidiary on EGX. The cell phone operator Etisalat Misr also announced it may float its shares in the local exchange.

The share offerings of both companies will probably spur the local market, especially as there are no listed cell phone firms after the exit of both Vodafone and Mobinil.

The analyst expected the benchmark to target 8,500 to 8,600 points, which may temporarily halt the rise. However, he reiterated a positive long-term outlook.

Last week, the EGX indexes collectively edged higher, supported by intensive purchases from Arab and Egyptian investors, and the market capital gained 3 billion EGP (U.S. $2.16 billion).

EGX30 edged 2.4 percent higher to 8140 points last week, while the EGX70 for small and mid-caps went up 0.89 percent to hit 651 points. The broader EGX100 increased by 1.08 percent to count 1,116 points.

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