EGX gains 5.2 billion EGP boosted by real estate stocks
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) indexes Wednesday amid remarkable improvement in liquidity and market capitalization gained 5.2 billion EGP ($737 million), getting support from positive performance of real estate stocks, most notably were Talaat Moustafa and Palm Hills.

The benchmark index EGX30 edged higher by 1.92 percent to hit 8,466 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 5.2 billion EGP, reaching 486.2 billion EGP compared to 481 billion EGP Tuesday. Total turnover reached 1.94 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, “reflecting investors’ confidence in the Egyptian economy.”

Arabian Cement’s IPO was 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.

The analyst added that EGX is likely to hit a new resistance level at 8,600 points, provided that the market bellwether CIB, currently moving in sideways, registered a significant rise.

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 180.1 million EGP and 226.2 million EGP respectively, while Egyptian net sell-offs reached 406.3 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.
















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