Mid-session: EGX moves sideways testing resistance at 8,600 points
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: Egyptian Exchange’s (EGX) indexes showed mixed performance during Sunday’s mid-session, coinciding with the first day of Arabian Cement stocks trading, with the stock jumping 14.8 percent in the first minutes.

The benchmark index EGX30 rose 0.15 percent to hit 8,566 points, up from 8, 545 points Thursday. The index managed to penetrate the 8,400 point resistance level for the third session in a row.

The small and mid-cap index dropped 0.09 percent to reach 620 points, while the broader EGX100 stood unchanged at 1,083 points.

Market capitalization added roughly 1.5 billion EGP ($210.89), reaching 493.8 billion EGP, compared to 492.3 billion EGP Thursday. Total turnover reached 628.7 million EGP until the middle of the session.

Ihab Saeed, head of technical analysis at Osool ESB Securities, said “the benchmark index is moving sideways with an upward tendency while approaching a new resistance level at 8,600 to 8,650 points after penetrating the former 8,400 points resistance level.”

In a phone interview, Saeed attributed EGX30’s limited rise to the first day of trading of Arabian Cement stock, which attracted investors affecting other leading shares.

Spanish Ambassador in Cairo Fidel Sendagorta del Campillo, EGX Chairperson Mohammed Omran and a delegation from Arabian Cement headed by its Chairperson Generoso Bertolin inaugurated the first day of trading of Arabian Cement company’s stocks, with the company’s chair ringing the bell of the trading session Sunday.

Arabian Cement’s IPO saw 18.5 times oversubscription, as the total amount of purchase orders reached 460.5 million shares, while the volume of shares offered for sale was approximately 24.9 million shares. Accordingly, the allocation rate reached 5.4 percent.

Saeed said he expects minor profit taking transactions on Tuesday. However, he predicted the benchmark could rebound Wednesday to hit 8,600 points ahead of the presidential elections due on May 26 and 27.

Also on Sunday, Egyptian and foreign net purchases registered 29.1 million EGP and 9.1 million EGP respectively, while Arab net sell-offs reached 38.2 million EGP.

On Thursday, EGX indexes boomed amid high liquidity and investor optimism over strong corporate financial results, boosting market capitalization with 6.1 billion EGP ($857.64 million.)

EGX30 edged higher 1.02 percent to hit 8,545 points, up from 8,466 points Wednesday. EGX70 also rose 0.64 percent to reach 620.8 points and the broader EGX100 grew 0.62 percent to register 1,082 points.

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