CAIRO: Indexes of the Egyptian Exchange (EGX) rose this week and market capital gained more than 8.1 billion EGP, mainly boosted by the good performance of real estate stocks.
The benchmark index EGX30 continued its upward movement and rose by 2.59 percent during the course of the week , penetrating the 8,100 points resistance level after ending Thursday at 8,103 points, supported by some leading shares.
Market capitalization gained 8.1 billion EGP, registering 477.6 billion EGP, compared to 469.5 billion EGP last week.
“EGX30’s rise was supported mainly by Talaat Moustafa (TMGH) stock which managed to offset its loss completely after registering the highest price level since 2008 at 8.98 EGP before closing at 8.83 EGP on Thursday,” the head of technical analysis at Osool Securities Brokerage Ehab Said told The Cairo Post Friday.
TMGH’s rise spurred the real estate sector’s rise which had a positive performance this week, most prominently Heliopolis (HELI), Madinet Nasr for Housing and Development (MNHD), as well as Palm Hills (PHDC), Saeed explained.
“The financial services sector also performed well this week, led by EFG Hermes (HRHO) and Pioneers Holding, while the dominating CIB followed by Global Telecom moved in sideways,” added the analyst.
Small and mid-cap index EGX70 also managed to rebound, adding 1.86 percent this week and penetrating a resistance level at 600 points after ending at 606 points on Thursday.
“Real estate shares powered EGX70, while Mobinil (EMOB) and Orascom Construction Industries (OCIC) tended to move sideways,” Saeed noted.
Weekly trading significantly declined during most sessions ranging between 490-885 million EGP, with a daily average valued at 687 million EGP, compared to 795 million EGP last week.
The analyst attributed this decline to an ongoing state of anticipation among some investors, especially individuals amid the absence of stimulating news and the continued sideways movement by the majority of small and medium stocks, despite remarkable rebounds by some blue chips.
Head of trading at Jazira Asset Management Moamen al-Shayal said that he expects EGX30 to face sales pressures next week, near the 8,200 point level, while head of technical analysis at Roots Securities Sameh Gharib, expected the benchmark to cross the 8,100 point mark, targeting resistance levels at 8350 points, Mubasher business website reported.
Last week, EGX indexes collectively edged up and market capitalization gained 8.3 billion EGP, supported by real estate shares as Cityscape conference and exhibition kicked off in Cairo.
EGX30 rose 2.57 percent to hit 7,899 points, compared to the previous 7,701 points, and EGX70 also added 3.67 percent to end at 595 points.