CAIRO: The Egyptian Exchange (EGX) indexes rallied Wednesday boosted by local purchases after the landslide victory of Abdel Fatah Al-Sisi, who was announced Egypt’s new president Tuesday.
The benchmark index EGX30 jumped 1.92 percent to reach 8,116 points, up from than Tuesday’s close at 7.963 points. The small and mid-cap index EGX70 went up 2.2 percent to hit 577 points and the broader index EGX100 added 1.96 percent to reach 1,009 points.
Market capitalization gained around 6.3 billion EGP to record 470.4 billion EGP, compared to 464.1 billion EGP Tuesday. Turnover reached 1.16 billion EGP.
Experts expected a second wave of decline as the short-term rebound was inevitable after the sharp slump triggered by the government’s announcement last week that it will mull a 10 percent annual tax on stock market profits and dividends.
Ehab Saeed, head of technical analysis at Osool ESB Brokerage, said the market rallied in response to Sisi’s vitory which may pave the way for investments and aid.
Meanwhile, the analyst said the benchmark will probably resume its downward correction once more if the benchmark fails to stay above 8,020 points.
“The market is witnessing a corrective wave and could re-test 7,400 points in the short term,” he added.