EGX shrugs off bombings, gains 4.3B EGP
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) indexes rebounded Thursday, unhurt by 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.

Boosted by the positive performance of some blue chips, the benchmark index EGX30 rose 1.43 percent to hit 8,258 points, up from 8,142 points Wednesday. The small and mid-cap index EGX70 added 0.69 percent to hit 600 points and the broader index EGX 100 also edged up 0.89 percent to reach 1,050 points.

Market capitalization gained around 4.3 billion EGP ($601.3 million,) registering 481.9 billion EGP, higher than 477.6 billion EGP yesterday.

Ehab Saeed, head of technical analysis at Osool Securities Brokerage Ehab Saeed attributed the rise to the positive performance of some blue chips topped by Global Telecom and Talaat Moustfa Group.

“EGX reached a bottom at 8,000 points, and it is now likely to see a new upward correction wave towards 8,450 points to 8,500 points,” Saeed told The Cairo Post in a phone interview.

Meanwhile, the analyst said he expects that EGX will resume its medium-term sideways trading and short-term downtrend upon approaching 8,500 points. He also reiterated his positive long-term outlook for Egypt’s stock market.

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 watering down some negative news, including the Cabinet’s approval of a 10 percent capital gains tax on stock market profits and dividends.

“EGX30 penetrated a resistance at 8,200 points, and a breach above this level will drive the benchmark towards 8,500 points,” Helal told The Cairo Post.

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