CAIRO: The Egyptian Exchange indexes (EGX) rallied during Monday’s mid-session amid upbeat investor sentiment over the presidential election that kicked off this morning.
Capital market experts and technical analysts said the benchmark index EGX30 is expected to continue the rally and penetrate the 9,000-point barrier if it manages to stay above the 8,600-point level this week, riding a bullish wave over the presidential election.
Powered by the positive performance of some blue chips topped by Citadel Capital, Talaat Moustafa, OTMT, Global Telecom and Egyptian Resort EGX30 soared to 8,812 points, adding 0.56 percent up.
Small and mid-cap EGX70 rose 0.2 percent to hit 616.9 points and the broader EGX100 was also up 0.22 percent at 1,082 points.
Market capitalization added roughly 1.8 billion EGP ($250 million) to hit 497.4 billion EGP compared to 495.6 billion EGP Sunday. Turnover reached 270.2 million EGP.
Hossam Helmy, a Pioneers Holding technical analysis advisor, said the EGX30 is approaching a resistance level at 9,000 points, but the index is likely to reduce its profits due to selling pressures after this rally.
“EGX30, however, will rebound and continue its upward movement towards the highest level since August 2008 at the beginning of the global financial crisis,” Helmy told The Cairo Post.
Managing Director of Pioneers Holding Mohsin Adel said accomplishing any step towards achieving democracy help create a state of stability in the country and reinstate investors’ confidence in the Egyptian economy in general and the stock market
“Having a new elected president after more than 3 years of political upheaval, EGX will witness a big leap in the short-term, backed by institutions’ medium-term purchases in the coming period,” Adel told The Cairo Post in a phone interview.
Ihab Saeed, head of technical analysis at Osool ESB Securities, attributed the rise to selective purchases of some leading shares.
“EGX30 would end Monday’s session over 8,800 points, adding that the index is likely to add 50 points to 60 points Tuesday if the election went smoothly without significant violence or unrest,” Saeed told The Cairo Post.
The analyst also expected a boom on Wednesday, whereas as a wave of profit taking could hinder EGX30 uptrend while approaching 9,000 points to 9,200 points in the short-term.