CAIRO: Egyptian Exchange (EGX) indexes rallied Tuesday, as the benchmark index EGX30 reached the highest level since in August 2008 amid upbeat investor sentiment ahead of presidential elections and Egyptian expats’ voting results.
EGX30 rose 0.88 percent to penetrate 8,600 points, reaching 8,658 points, boosted by Egyptian purchases and the positive performance of the leading shares, topped by the market bellwether CIB.
The small and mid-cap index added 0.31 percent to reach 624 points and the broader EGX100 was also up 0.31 percent at 1,089 points. Market capitalization added more than 1.8 billion EGP ($500 million) to hit 295.5 billion EGP compared to 492.7 billion EGP Monday. Turnover totaled 1.5 billion EGP.
“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 added that “the market rally was also driven by the 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 42 million EGP, while Arab and foreign net sell-offs registered 14 million EGP and 28.2 million EGP respectively.
EGX ended in the green Monday, offsetting morning losses after getting support from market bellwether CIB, Global Telecom and some real estate stocks. Market capitalization added more than 1.6 billion EGP ($224.9 million).EGX30 rose 0.59 percent to hit 8,582 points, approaching 8,600 points.