CAIRO: The Egyptian Exchange (EGX) indexes had a mixed performance Sunday, with the benchmark index EGX30 trading sideways as investors anticipate the presidential election slated for Monday and Tuesday.
Backed by the selective purchase of some blue chips, the EGX30 added 0.4 percent to reach 8,762 points, continuing its rally towards its 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 EGX70 dropped 1.28 percent to hit 615 points and the broader EGX100 was also down 0.88 percent at 1,080 points.
Market capitalization lost roughly 2.3 billion EGP ($322.46 million) to hit 495.6 billion EGP compared to 497.9 billion EGP Thursday. Turnover reached 1.5 billion EGP.
Capital market experts and technical analysts, however, said the EGX30 would continue its rally and penetrate the 9,000 point barrier if it manages to stay above the 8,600-point level in the short term.
Hossam Helmy, a Pioneers Holding technical analysis advisor, said investors are cautious over fears of clashes and violence during the election.
“This cautious sentiment was behind the sideways performance during the Sunday session, but the EGX30 is expected to rally by the end of the week, targeting between 9,000 points to 9,500 points in the short-term,” Helmy told The Cairo Post.
Ihab Saeed, head of technical analysis at Osool ESB Securities, agreed with Helmy on investor fears, but was generally upbeat and said the EGX30 will target a new barrier of 9,000 points if it can penetrate the 8,600 point barrier.
Mohamed Gaballah, a capital market expert, went even further and told the Mubasher business website that the EGX30 index has been hovering between 8,700-8,730 points for two successive sessions and could jump as high as 9,500 points in the short term.
Also on Sunday, Egyptian net purchases registered 35.8 million EGP, while Arab and foreign net sell-offs reached 10 million EGP and 25.8 million EGP respectively.
The EGX indexes rebounded Thursday and the EGX30 soared above 8,700 points to hit 8,734 points, boosted by an Arab and foreign buying spree. Market capitalization added 3.4 billion EGP.