CAIRO: Egyptian Exchange’s (EGX) indexes soared up during Thursday’s mid-session amid high liquidity resulting from the unexpected oversubscription to the Arabian Cement IPO, boosting market capitalization with 5.8 billion EGP ($816.33 million).
The benchmark index EGX30 edged higher by 0.93 percent to hit 8,545 points, up from 8,466 points Wednesday, managing to penetrate the 8,400 point resistance level for a second session in a row.
The small and mid-cap index EGX70 also rose by 0.57 percent to reach 620 points and the broader EGX100 index added 0.55 percent to register 1,082 points.
Market capitalization added roughly 5.8 billion EGP, reaching 492 billion EGP, compared to 486.2 billion EGP Wednesday. Total turnover reached 1.07 billion EGP.
Ahmed Khaled, head of technical analysis at Arabia Online Brokerage, attributed the rise to the liquidity injected to the market following the unexpected 18.5 times oversubscription to the Arabian IPO. Arabian Cement’s IPO was the first major listing on EGX since 2011.
“EGX30 is targeting a resistance level at 8,600 points after penetrating 8,400 points for two successive sessions,” Khaled told The Cairo Post. “Investor optimism over strong quarter profits along with the start of voting abroad by Egyptian expats, to elect their president, also supported the market performance.”
Khaled said he expects investors to tend towards profit taking by the end of the session, following the remarkable rise, noting that EGX30 is likely to shoot above 8,600 on Sunday.
“This unexpected oversubscription could boost market liquidity,” Saeed told The Cairo Post, noting that Egyptians abroad, set to elect Egypt’s president starting Thursday, also supported the market.
“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,” Ehab el-Saeed, head of technical analysis at Osool ESB Securities, told The Cairo Post.
Also on Thursday, Arab and foreign net purchases registered 7.7 million EGP and 5.1 million EGP respectively, while Egyptian net sell-offs reached 9.9 million EGP.
On Wednesday, EGX ended in the green amid remarkable improvement in liquidity. Market capitalization gained 5.2 billion EGP ($737 million), getting support from positive performance of real-estate stocks, specifically Talaat Moustafa and Palm Hills.
EGX30 edged higher by 1.92 percent to hit 8,466 points, up from 8,307 points Tuesday. 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.