CAIRO: The Egyptian Exchange (EGX) rallied during the week due to investor sentiment preceding the presidential elections, and market capitalization gained around 5.5 billion EGP ($771.1 million) to hit its highest daily level since March 27 at 497.89 billion EGP.
The benchmark index EGX30 jumped 2.27 percent to end the week above the 8,700 resistance level at 8,727 points, up from 8,533 points last week.
Small and mid-cap index EGX70 rose 0.46 percent to close at 623 points, compared to 620 points last week, and the broader index EGX100 also added 0.61 percent to end the week at 1,089 points.
Capital market experts say the benchmark EGX30 could reach 9,000 points before the presidential elections slated for May 26 and 27. Technical analysts have 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 benchmark index managed to stay above 8,600 points and resumed the rally towards 8,700 points, reaching its highest level since August 2008, Osool Securities Brokerage head of technical analysis Ehab Saeed told The Cairo Post Friday.
“Positive performance of blue chips, most notably the market bellwether CIB, followed by Global Telecom and EFG-Hermes, backed the market rally,” Saeed added.
“EGX30 is likely to hit the 9,000-point barrier upon affirming its position above 8,700 points and amid stability given the completion of the presidential elections,” Ahmed Abdel Hamid, Managing Director of Watheeqa Securities Brokerage told Mubasher business website late Thursday.
“Ezz Steel stock and the majority of real estate shares, topped by Talaat Mousafa Group, Amer Group, Plam Hills, and Madinet Nasr for Housing and Development (MNHD) supported the rally,” Saeed added.
The analyst reiterated that the upcoming presidential elections remain the key upcoming event, especially after expatriate voting showed “unprecedented turnout,” sparking investor optimism and bullish sentiment, despite bombings and student protests at universities.
“Ranging between 860 million EGP and 1.3 billion EGP during the course of the week, EGX trade value and volume saw remarkable improvement, as daily average amounted to 1.08 billion EGP, up from 835 million EGP during the week before,” Saeed continued.
Over last week’s trading sessions, the market surged amid investor bullish sentiment as expatriates started to cast their votes, in addition to strong corporate results during Q1 of 2014.
The EGX30 jumped 4.17 percent to end the week above the 8,400 resistance level at 8,533 points. EGX70 edged up 2.48 percent to close at 620.8 points and the broader index EGX100 also rose by 2.5 percent to hit 1,083 points. Market capitalization gained around 14.6 billion EGP.