Mid-session: EGX sees boom ahead of elections
Egyptian Exchange - AFP/Marco Longari
By YASMINE SAMRA

CAIRO: The Egyptian Exchange (EGX) indexes edged up during Wednesday’s mid-session amid remarkable improvement in liquidity and market capitalization, getting support from positive performance of real estate stocks and gaining 3.2 billion EGP ($453.57 million).

The benchmark index EGX30 edged higher by 1.38 percent to hit 8,421 points, up from 8,307 points Tuesday, penetrating the 8,400 point resistance level. The small and mid-cap index EGX70 also rose by 0.77 percent to reach 616 points and the broader EGX100 index added 0.84 percent to register 1,072 points.

Market capitalization added roughly 3.2 billion EGP, reaching 484.2 billion EGP compared to 481 billion EGP Monday. Total turnover reached 1.3 billion EGP, up from 933 million EGP yesterday.

Ehab el-Saeed, head of technical analysis at Osool ESB Securities, attributed EGX’s rise to investor optimism over the unexpected 18.5 times oversubscription in the Arabian Cement Company’s initial public offering (IPO), “reflecting investors’ confidence in the Egyptian economy.”

Arabian Cement’s IPO is the first major listing on EGX since 2011.

“This unexpected oversubscription could boost the market liquidity,” Saeed told The Cairo Post, noting that Egyptians abroad, set to elect Egypt’s president starting Thursday, also supported the market.

Saeed said he expects “the market to keep moving sideways with low turnover ahead of the elections.” The analyst, however, said he expects EGX30 to approach a resistance level at 8,400 points by the end of the week.

Hossam Helmy, technical analysis advisor at Pioneers Holding, told The Cairo Post, “The EGX30 could rebound to penetrate a resistance level of 8,600 points, gaining momentum from the elections.”

Also on Wednesday, Arab and foreign net purchases registered 174.1 million EGP and 214.1 million EGP respectively, while Egyptian net sell-offs reached 388.5 million EGP.

EGX ended in the green Tuesday and market capitalization gained 2.1 billion EGP ($300 million), powered by purchases of local and Arab foundations.

EGX30 edged higher by 0.77 percent to hit 8,307 points, up from 8,243 points Monday. EGX70 also rose by 0.56 percent to reach 611.9 points and the broader EGX100 index added 0.66 percent to register 1,063 points.

 

 

 

Recommend to friends

Leave a comment