CAIRO: The Egyptian Exchange (EGX) indexes rallied Monday and market capitalization gained 3.3 billion EGP ($461 million) backed by upbeat investor sentiment over the inauguration of President Abdel Fatah al-Sisi.
The benchmark index EGX30 rose 1.12 percent to reach 8,593 points, up from Thursday’s close at 8,498 points. The small and mid-cap index EGX70 went up 0.82 percent to hit 604 points and the broader index EGX100 added 0.79 percent to reach 1,056 points.
Market capitalization added 3.3 billion EGP to record 489.8 billion EGP, compared to 486.5 billion EGP Thursday. Turnover surged to 2 billion EGP.
Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim EL-Nemr said the benchmark managed to breach above the previous resistance level of 8,250 points amid high volume trading.
“This could lead the EGX30 to advance towards the resistance level of 8,825 once again,” Nemr told The Cairo Post, advising investors to hold their stock.
Ehab Saeed, head of technical analysis at Osool ESB Brokerage, said he expects the benchmark could resume the rally and re-test its previous peak at 8,800 points upon crossing the 8,550-8,600 threshold.
EGX indexes soared on Thursday and market capitalization gained more than 16 billion EGP, boosted by an offer by Beltone Financial along with a group of investors to buy a 20 percent stake in EFG-Hermes.
The market was also powered by Saudi King Abdullah bin Abdul Aziz’s call for a donor conference to help boost the Egyptian economy, in addition to the blue chip Global Telecom’s positive financial results.