CAIRO: The Egyptian Exchange (EGX) indexes edged up Tuesday, amid strong purchases by Arab and foreign investors, offsetting part of the sharp losses that followed Field Marshal Abdel Fatah al-Sisi’s announcement of his bid for presidency.
Market capitalization gained more than 11.5 billion EGP, reaching 460.89 billion EGP Sunday, compared to 449.3 billion EGP on Monday.
The benchmark EGX30 edged up 2.3 percent to end at 7,704 points, compared to 7,391 points Monday. The small and mid-cap index EGX70 went up 3 percent at 581 points, and the broader EGX100 index jumped 2.6 percent to 1,018 points.
The EGX has declined sharply, losing a total 53 billion EGP, since Sisi’s announcement, amid intensive selling pressures by national institutions.
“The market is greatly expected to end the corrective movement that lasted for two weeks in a row if the benchmark index EGX30 manages to penetrate the new resistance level at 8,850 points,” head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post.
Meanwhile, Saeed said that he expects the market to decline on Wednesday on profit taking following this rise. “This gives short-term investors an opportunity to carry out rapid trades to offset their losses,” Saeed added.
He reiterated his positive long-term outlook for the market, expecting EGX30 to rebound, penetrating 8,600 points after conducting the presidential elections scheduled for May 26 and 27.
Arabs and foreigners’ net purchases registered 8.6 million EGP and 35.8 million EGP respectively, while Egyptians’ net sell-offs reached 43.8 million EGP Tuesday.
On Monday, EGX ended on a mixed note narrowing early losses, amid strong purchase activities from Egyptian institutions and selling pressures from retail national investors and Arab and foreign institutions.
EGX30 rose 0.08 percent to close at 7530 points, while EGX70 lost 0.75 percent, and EGX100 dropped 0.54 percent.