CAIRO: The Egyptian Exchange indexes closed up Wednesday, offsetting morning loss, boosted by purchases of national and Arab institutions amid expectations of ending a correction wave.
The benchmark index EGX30 edged 0.83 percent to close at 7,768 points, compared to 7,704 on Tuesday. The small and mid-cap index EGX70 went up 1.3 percent at 588 points, and the broader EGX100 index also rose by 1.24 percent to end at 1,031points.
Market capitalization gained approximately 2.5 billion EGP ($360 million,) reaching 463.3 billion EGP, compared to 460.8billion EGP on Tuesday.
“The market is greatly expected to end the corrective movement that lasted for two weeks in a row with the benchmark index EGX30 approaching the new resistance level at 7,850 points,” head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post.
He reiterated his positive long-term outlook for the market, expecting EGX30 to rebound and penetrate 8,600 points after conducting the presidential elections, which are scheduled for May 26 and 27.
Arabs and foreigners’ net purchases registered 236,800 EGP and 6.9 million EGP respectively, while Egyptians’ net sell-offs reached 7.2 million EGP Wednesday.
The EGX has declined sharply, losing a total 53 billion EGP, amid intensive selling pressures by national institutions, since Field Marshal Abdel Fatah al-Sisi announced his bid for presidency last week.
On Tuesday, the market significantly edged up and market capitalization gained more than 11.5 billion EGP, offsetting part of the sharp losses following Sisi’s announcement.