CAIRO: The Egyptian Exchange (EGX) indexes ended on a collective rise Sunday, shrugging off the Cabinet’s oil price hike amid reform measures to restructure subsidies that eat up 20 percent of the State’s budget.
Boosted by local institutions’ purchases, the benchmark index EGX30 rose 0.76 percent to hit 8,321 points, up from 8,258 points Thursday. The small and mid-cap index EGX70 edged up 0.94 percent to hit 605.9 points and the broader index EGX 100 also added 0.88 percent to reach 1,059 points.
Market capitalization gained around 1.9 billion EGP ($265.7 million), registering 483.8 billion EGP and up from 481.9 billion EGP Thursday.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), said the market absorbed the government’s recent decision to cut energy subsidies.
“The market showed positive performance last week as the benchmark penetrated the 8,000 point barrier, which turned out to be a new support level,” Helal told The Cairo Post.
He added that the EGX70 continued its rally targeting 666 points after penetrating 600 points.
“The EGX’s positive performance reiterated an economic theory stating countries that are on the brink of high inflation rates witness a stock market boom as investors find them safe havens from cash shortages,” the analyst said.
On Thursday, the EGX indexes rebounded and market capitalization gained around 4.3 billion EGP ($601.3 million), despite a series of blasts that hit several areas of Cairo, killing one and injuring another on the first anniversary of the ousting of former President Mohamed Morsi.
The EGX30 rose 1.43 percent to hit 8,258 points, up from 8,142 points Wednesday. The EGX70 added 0.69 percent to hit 600 points and the EGX 100 also edged up 0.89 percent to reach 1,050 points.