CAIRO: The Egyptian Exchange (EGX) rose collectively this week and market capitalization gained around 8.1 billion EGP ($1.13 billion) boosted by the positive performance of some blue chips.
The market was unhurt by three successive explosions Monday that took place near Ithadeya presidential palace in Heliopolis. The explosions killed two policemen and injured at least 10 people. The EGX also shrugged off a series of bomb blasts on Thursday, marking the first anniversary of the ouster of Islamist former President Mohamed Morsi on July 3.
The benchmark index EGX30 edged up 2.03 percent to end the week at 8,258 points, up from 8,093 points last week. The small and mid-cap index EGX70 also jumped 2.99 percent to close the week at 600 points, compared with 583 points.
The broader index EGX100 also added 2.6 percent to end at 1,050 points, compared with 1,023 points last week. Market capitalization amounted to 481.9 billion EGP, compared with 473.8 billion EGP last week.
During the course of the week, trade value totaled 3.8 billion EGP, and turnover reached 574 million securities traded over 68,000 transactions, compared to a total of 7.3 billion EGP and 736 million securities over 96,000 trades the week before.
“The EGX30 managed to stay above its new support level at 8,000 points early this week which was limited to four sessions only, and then rebounded towards 8,258 point on Thursday,” said Ehab Saeed, head of technical analysis at Osool Securities Brokerage.
Saeed attributed the rebound to the positive performance of most blue chips that settled after approaching main support levels, topped by market bellwether CIB, Global Telecom, Talaat Moustafa and Ezz Steel.
The analyst said he expects that the benchmark will focus on the new support level at 8,000 points. “If the EGX30 managed to breach above 8,000 points, it will probably resume its corrective rebound towards 8,450 points to 8,500 points amid its medium-term sideways trading.”
Last week, the indexes lost ground and market capitalization shed around 7 billion EGP and the benchmark index plunged 2.96 percent. The plunge followed remarks by President Abdel Fatah al-Sisi about adopting austerity procedures to fill the budget deficit. The market was also harmed by growing regional concerns over the Iraq crisis.