CAIRO: The Egyptian Exchange (EGX) indexes edged higher during Sunday’s mid-session, offsetting part of the great loss followed the resignation of Field Marshal Abdel Fatah al-Sisi from his post as Minister of Defense to bid for the presidency.
The benchmark EGX30 jumped 1.34 percent to hit 7,804 points compared to 7,701 points Thursday. The small and mid-cap index EGX70 rose 0.8 percent at 578 points, and the broader EGX100 index went up 0.83 percent to 1,017 points.
The EXG has declined sharply, losing a total 41.1 billion EGP ($5.89 billion,) since Sisi’s announcement amid intensive selling pressures by Egyptian institutions.
Market capitalization gained 3 billion EGP, to reach 464.2 billion EGP Sunday, compared to 461.2 billion EGP on Thursday.
“The market is facing a corrective movement for the second successive week, which was triggered by the selling of national institutions and random sell-offs by retail investors,” head of technical analysis at Osool Securities Brokerage Ehab Saeed told The Cairo Post.
“This gives short-term investors an opportunity to carry out rapid trades to offset their loss, but long-term investors will not sell during this correction wave,” Saeed added.
Meanwhile, the analyst said he expects the market to show limited decline of 50 points Monday due to profit taking by short-term traders.
However, he reiterated his positive long-term outlook for the market, expecting EGX30 to rebound penetrating 8,600 points after conducting the presidential elections scheduled on May 26 and 27.
Egyptians’ net sell-offs reached 40.5 million EGP Sunday, while Arabs and foreigners’ net purchases registered 37.5 million EGP and 2.9 million EGP respectively.