CAIRO: The Egyptian Exchange (EGX) indexes rebounded Thursday and the benchmark index EG30 soared above 8,700 points, boosted by Arab and foreign buying spree and market capitalization added 3.4 billion EGP.
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.
Backed by the positive performance of some blue chips topped by market bellwether CIB, EGX30 during Thursday session jumped 1.17 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 0.4 percent to hit 623 points and the broader EGX100 was also up 0.49 percent at 1,089 points.
Market capitalization added roughly 3.4 billion EGP ($million) to hit 497.9 billion EGP compared to 494.5 billion EGP Wednesday. Turnover reached 1.5 billion EGP.
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 said that 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.
“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,” Ihab Saeed, head of technical analysis at Osool ESB Securities, told The Cairo Post.
Also on Thursday, Arab and foreign net purchases registered 24.3 million EGP and 38.5 million EGP respectively, while Egyptian net sell-offs reached 62.8 million EGP.
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.