Mid-session: EGX30 approaches 9,000 points in run-up to election
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) indexes rebounded during Thursday’s mid-session due to the positive performance of some blue chips topped by market bellwether CIB.

Experts now say the benchmark EGX30 could reach 9,000 points riding a wave of upbeat investor sentiment over the presidential election slated from May 26-27.

The EGX30 during the Thursday mid-session jumped 1.24 percent to reach 8,734 points, the highest level since August 2008 at the beginning of the global financial crisis.

The small and mid-cap index EGX70 rose 0.39 percent to hit 623 points and the broader EGX100 was also up 0.47 percent at 1,083 points. Market capitalization added roughly 3.6 billion EGP ($505.27 million) to hit 498.1 billion EGP compared to 494.5 billion EGP yesterday. Turnover reached 872.2 million EGP by the mid-session.

Capital market experts and technical analysts said the EGX30 will penetrate the 9,000 point barrier if it manages to stay above the 8,600-point level in the short term

“The EGX rebounded to higher levels after retesting the 8,600 level Wednesday,” Mohamed Gaballah, a capital market expert told Mubasher business website.

Gaballah added that the EGX30 index has been hovering around 8,700-8,730 points for two successive sessions, amid expectations that it could jump as high as 9,500 points in the short term.

Ihab Saeed, head of technical analysis at Osool ESB Securities, told The Cairo Post, “The EGX30 will target a new barrier at 9,000 points after first penetrating the 8,600 point barrier for two sessions in a row.”

Also on Thursday, Arab net purchases reached 10 million EGP, while Egyptian and foreign net sell-offs registered 4.8 million EGP and 5.2 million EGP respectively.

EGX indexes ended on a collective decline Wednesday, amid selling pressure by local companies and foreign individuals following a market surge that lasted seven sessions in a row.

The benchmark index dropped 0.36 percent to reach 8,626 points, down from 8,658 points Tuesday and market capitalization lost roughly 1 billion EGP ($140.3 million) to hit 494.5 billion EGP.

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