EGX rebounds despite deadly Ithadeya bombings
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) indexes rebounded Monday and ended the session in the green, boosted by purchases of local and foreign institutions as well as Arab retail traders.

The market shrugged off three successive explosions that took place near Ithadeya presidential palace in Heliopolis Monday morning. The explosions killed two policemen and injured at least 10 people.

The EGX was also supported by the positive performance of leading stocks in the real estate sector, headed by Nasr City for Housing and Development (MNHD), Amer Group and Palm Hills.

The benchmark index EGX30 rose 1.13 percent to hit 8,162 points, down from Sunday’s close at 8,070 points. The small and mid-cap index EGX70 added 0.98 percent to hit 591 points and the broader index EGX100 also increased 0.82 percent to reach 1,034 points.

Market capitalization gained around 4.2 billion EGP ($587.2 million,) registering 477.6 billion EGP, compared to 473.4 billion EGP Sunday. Turnover surged to 1.8 billion EGP, up from only 396.6 million EGP yesterday, as three transactions were executed today under the ‘block trading’ mechanism at a total value of 1.4 billion EGP.

Ibrahim El-Nemr, head of the 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 the EGX 30 higher towards 8,500 points, but a breach below 8,000 may drag it lower towards 7,720 points,” he said.

The 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.

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