CAIRO: The Egyptian Exchange (EGX) indexes rebounded during Thursday’s early and mid-session trading, boosted by the positive performance of some blue chips.
The market shrugged off a series of blasts that hit several areas of Cairo, killing one and injuring another, on first anniversary of the ouster of former president Mohamed Morsi.
The benchmark index EGX30 rose 1.22 percent to hit 8,241 points, down from 8,142 points Wednesday. The small and mid-cap index EGX70 added 0.7 percent to hit 600 points and the broader index EGX 100 also edged up 0.66 percent to reach 1,048 points.
Market capitalization gained around billion 3.9 EGP, registering 481.5 billion EGP, higher than 477.6 billion EGP yesterday.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), said the market rebounded after some negative news, including the Cabinet’s approval of a 10 percent capital gains tax on stock market profits and dividends.
“EGX30 will find resistance at 8,200 points, and a breach above this level will drive the benchmark towards 8,500 points,” Helal told The Cairo Post.
The analyst said EGX70, which showed better performance since last week, is likely to start a new uptrend, boosted by penetrating the 600 point-barrier during this session.
EGX indexes ended on a mixed note Wednesday after offsetting part of morning losses triggered by selling pressures from foreign and Arab institutions.
The market was also harmed after President Abdel Fatah al-Sisi approved the capital gains tax o Tuesday. Sisi also issued a decree to amend some provisions of the Income Tax Law and Stamp Duty Law amid efforts to revive Egypt’s limping economy.
EGX30 dropped 0.24 percent to hit 8,142 points, down from Monday’s close at 8,162 points while EGX70 added 0.85 percent to hit 596 points and the broader index EGX 100 also rose 0.66 percent to reach 1,041 points.