EGX off Sunday for Sisi inauguration, gains 10 bln EGP last week
Egyptian stock market in Cairo - REUTERS/Asmaa Waguih

CAIRO: The Egyptian Exchange announced Sunday an official holiday on the occasion of the inauguration Abdel Fattah al-Sisi as Egypt’s new President, according to a statement posted Thursday.

EGX rebounded and surged last week and market capitalization gained around 10.3 billion EGP ($1.44 billion) amid upbeat investor sentiment about Beltone Financial’s offer to buy a 20 percent stake in EFG- Hermes.

The market was also powered by the landslide victory of Sisi, who was declared Egypt’s new President late Tuesday after winning 96.91 percent of votes in the election held on May 26, 27 and 28.

The benchmark index EGX30 hiked 3.1 percent to close the week near the 8,500 barrier at 8,498 points, up from 8,243 points during the week before.

The small and mid-cap index EGX70 rose 1.65 percent to end the week at 599 points, compared with 589 points. The broader index EGX100 ended 1.66 percent up at 1,048 points.

Ehab Saeed, head of technical analysis, Osool Securities Brokerage, said EGX30 failed to stay above short-term support level of 8,150 points and continued the slide towards 7,800 points and then to 7,723 points hammered by Cabinet’s decision to mull a 10 percent capital gains tax on stock market profits and dividends.

“Such tax triggered selling pressures by local institutions especially during the first half of the week, leading most blue chips to slide sharply near key support levels not reached for a long time,” added Saeed.

The analyst said he expects the benchmark could resume the rally and re-test its previous peak at 8,800 points upon penetrating the 8,550-8,600 level.

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