CAIRO: Egyptian Exchange (EGX) indexes rallied during Tuesday mid-session, as the benchmark index EGX30 reached the highest level since August 2008 amid upbeat investor sentiment ahead of presidential elections.
EGX30 jumped 1.38 percent to penetrate 8,600 points, reaching 8,700 points, boosted by Egyptian purchases and the positive performance of the leading shares, topped by the market bellwether CIB, Hermes and Talaat Moustafa.
The small and mid-cap index added 0.52 percent to reach 625 points and the broader EGX100 was also up 0.58 percent at 1,092 points. Market capitalization added more than 3.5 billion EGP ($500 million) to hit 296.2 billion EGP compared to 492.7 billion EGP Monday.
“The benchmark managed to penetrate 8,600 points due to investor optimism over the presidential elections due May 26 and 27,” Ihab Saeed, head of technical analysis at Osool ESB Securities, told The Cairo Post.
Saeed attributed EGX30‘s rise to the initial results of Egyptian expat voting, with presidential candidate Abdel Fatah al-Sisi reportedly gaining the overwhelming majority of votes.
Meanwhile, the analyst reiterated that the market would confirm the new trend if the benchmark manages to stay above 8,600 points for two successive sessions.
“EGX is not likely to witness profit taking following this remarkable rise until the elections,” said the analyst, adding that EGX30 will target 9,000 points after confirming the penetration of 8,600 points.
Also on Tuesday, Egyptian net purchase reached 32 million EGP, while Arab and foreign net sell-offs registered 1.8 million EGP and 30.2 million EGP respectively.