CAIRO: The Egyptian Exchange’s (EGX) indexes boomed Thursday amid high liquidity and investor optimism over strong corporate financial results, boosting market capitalization with 6.1 billion EGP ($857.64 million).
The benchmark index EGX30 edged higher by 1.02 percent to hit 8,545 points, up from 8,466 points Wednesday, and managed to penetrate the 8,400 point resistance level for the second session in a row.
The small and mid-cap index EGX70 also rose by 0.64 percent to reach 620.8 points and the broader EGX100 grew 0.62 percent to register 1,082 points.
Market capitalization added roughly 6.1 billion EGP, reaching 492.3 billion EGP, compared to 486.2 billion EGP Wednesday. Total turnover reached 1.64 billion EGP.
Ahmed Khaled, head of technical analysis at Arabia Online Brokerage, attributed the rise to the liquidity injected into the market following the unexpected oversubscription in the Arabian Cement private and public offering. Arabian Cement’s IPO was the first major EGX listing since 2011.
“The EGX30 is targeting a resistance level of 8,600 points after penetrating 8,400 points for two successive sessions,” Khaled told The Cairo Post. “Investors’ upbeat sentiment about strong quarter profits, along with the start of voting abroad by Egyptian expats to elect their president, is behind the market rally.”
“The EGX is likely to hit a new resistance level at 8,600 points, provided that market bellwether CIB, currently moving sideways, registers 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 37.7 million EGP and 10.7 million EGP respectively, while Egyptian net sell-offs reached 48.4 million EGP.
On Wednesday, the EGX ended in the green and capitalization added 5.2 billion EGP ($737 million), getting support from positive performance of real-estate stocks, specifically Talaat Moustafa and Palm Hills.
The 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.