CAIRO: The Egyptian Exchange (EGX) indexes showed a mixed performance during Sunday’s mid-session, and the benchmark index EGX30 moved sideways as investors anticipate the presidential elections slated from May 26-27.
Backed by selective purchases of some blue chips topped by Talaat Moustfa, EGX30 added 0.23 percent to reach 8,747 points, the highest level since August 2008 at the beginning of the global financial crisis
Experts now say the benchmark EGX30 could reach 9,000 points riding a wave of upbeat investor sentiment over the presidential election.
In turn, the small and mid-cap index EGX70 dropped 1.24 percent to hit 615 points and the broader EGX100 was also down 0.85 percent at 1,080 points.
Market capitalization lost roughly 2.8 billion EGP ($392.56 million) to hit 495.1 billion EGP compared to 497.9 billion EGP Thursday. Turnover reached 1 billion EGP.
Capital market experts and technical analysts, however, said the EGX30 would penetrate the 9,000 point barrier if it manages to stay above the 8,600-point level in the short term.
Ihab Saeed, head of technical analysis at Osool ESB Securities, attributed EGX30 sideways movement to investors’ anticipation of the elections, and concerns over possible clashes and riots while citizens are casting their votes Monday and Tuesday.
Saeed added that “the benchmark index is expected to move sideways with an upward tendency, but it will rebound and surge after Monday’s mid-session.”
“The EGX30 will target a new barrier at 9,000 points after penetrating the 8,600 point barrier.” He added.
Mohamed Gaballah, a capital market expert told Mubasher business website that EGX30 index has been hovering around 8,700-8,730 points for two successive sessions and said the index could jump as high as 9,500 points in the short term.
Also on Sunday, Egyptian net purchases registered 10.9 million EGP, while Arab and foreign net sell-offs reached 2.3 million EGP and 8.6 million EGP respectively.
EGX indexes rebounded Thursday and EG30 soared above 8,700 points to hit 8,734 points, boosted by Arab and foreign buying spree and market capitalization added 3.4 billion EGP.