CAIRO: The Egyptian Exchange (EGX) indexes rebounded during Monday’s early and mid-session trading amid remarkable increase in liquidity, backed by positive performance of leading stock of real estate sector, headed by Nasr City for Housing and Development (MNHD), Amer Group and Palm Hills.
The benchmark index EGX30 rose 0.93 percent to hit 8,146 points, down from Sunday’s close at 8,070 points. The small and mid-cap index EGX70 added 0.83 percent to hit 590 points and the broader index EGX100 also increased 0.88 percent to reach 1,034 points.
Market capitalization gained around 2.8 billion EGP ($million), registering 476.2 billion EGP, compared to 473.4 billion EGP Sunday. Turnover surged to 1.5 billion EGP, up from 396.6 million EGP yesterday.
Ibrahim El-Nemr, head of Technical Analysis Desk at Naeem Brokerage told The Cairo Post that the benchmark is still trading in the support range of 8,000-8,130 points.
“A breach above 8,190 points may send EGX 30 higher towards 8,500 points, but a breach below 8,000 may drag it lower towards 7,720 points,” he added.
EGX ended on a mixed note Sunday amid sideways trading with a downward tendency and weak liquidity ahead of the end of the current fiscal year, which coincided with the Cabinet’s plans to cut energy subsidies.
The market was also harmed by investor concerns over the Cabinet’s remarks about removing energy subsidies, which could push prices up and affect stability dramatically.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), told The Cairo Post that he rules out further decline in the coming period, citing government attempts to lure new investments and establish new national megaprojects, in which the stock market could be a key finance tool.