CAIRO: The Egyptian Exchange (EGX) surged during Wednesday’s early and mid-session trading powered by the bullish performance of most blue chips.
The benchmark index EGX30 increased 1.41 percent to hit 8,537 points, higher than 8,428 points Tuesday. The small and mid-cap index EGX70 gained 0.59 percent to hit 612 points and the broader index EGX 100 also added 0.73 percent to reach 1,076 points.
Market capitalization added around 3.8 billion EGP ($531.4 million,) registering 490.6 billion EGP up from 486.8 billion EGP yesterday. Total trade value amounted to 224.7 million EGP.
Ibrahim El-Nemr, head of the Technical Analysis Desk at Naeem Brokerage told The Cairo Post that the benchmark penetrated the resistance level of 8,500 points.
“A breach above 8,500 may send it higher towards 8,800 points,” said the analyst.
Real estate stock topped by Sodic, Talaat Moustafa and Madinet Nasr for Housing and Development led the market rally Wednesday.
EGX rebounded after Tuesday’s mid-session, buoyed by a Fitch Ratings’ report in which the agency stated that the “recently announced oil price hikes are an important step to reduce subsidies which will contribute to Egypt’s substantial fiscal deficit—a key rating weakness.”
The benchmark index rose 1.41 percent to hit 8,428 points and market capitalization added around 3.3 billion EGP.
On June 27, the credit rating agency reaffirmed its B- long-term foreign currency rating for Egypt, noting that “material progress on fiscal consolidation” was one factor that could lead to a positive rating action.
“Tackling subsidies is a key to reduce Egypt’s budget deficit, which we estimate is at 12.1 percent of GDP in 2013/14 [that ended in June 30],” Fitch reported.