CAIRO: The Egyptian Exchange (EGX) indexes collectively rose during Thursday’s early and mid-session trading, and market capitalization gained 3.3 billion EGP ($460 million,) powered by the positive performance of real estate stocks.
The market rally was also boosted by investor upbeat sentiment following global indexes provider MSCI’s Tuesday decision not to downgrade the Egyptian indexes from its emerging market index.
The benchmark index EGX30 rose 1.03 percent to reach 8,798 points, approaching a resistance level at 8,800 points, and higher than Wednesday’s close at 8,708 points. The small and mid-cap index EGX70 edged up 0.14 percent to hit 609 points and the broader index EGX100 added 0.32 percent to reach 1,072 points.
Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim el-Nemr said the benchmark managed to breach 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.
Walid Helal, technical analyst at El Mokattam Securities Brokerage and a member of The Egyptian Society of Technical Analysts (ESTA) said the market showed a great performance after the benchmark rebounded from the support level of 8,500 points boosted by the MSCI move.
Helal said EGX30 confirmed its short-term movement and this could hike towards 8,800 once more. He advised traders to prepare to capitalize on the coming upward trend.
MSCI announced late Tuesday that it is no longer considering launching a public consultation on a potential exclusion of the MSCI Egypt Index from the MSCI Emerging Markets Index.
In its Annual Market Classification Review for 2014, MSCI stated that its decision followed a substantial increase in the country’s foreign currency reserves since the beginning of the year.
In response, the market showed a strong performance and market capitalization gained 5 billion EGP.
EGX30 rose 1.65 percent to reach 8,708 points, EGX70 edged up 1.05 percent to hit 608 points and the broader index EGX100 added 1.14 percent to reach 1,068 points.