CAIRO: The Egyptian Exchange (EGX) ended Wednesday’s trading session in the green after reducing morning gains due to profit taking from blue chips that rallied during the early trading.
The benchmark index EGX30 rose 0.79 percent to hit 8,495 points, higher than 8,428 points Tuesday. The small and mid-cap index EGX70 gained 0.14 percent to hit 610 points and the broader index EGX 100 also added 0.29 percent to reach 1,072 points.
Market capitalization added around 2.2 billion EGP ($307.6 million), registering 489 billion EGP up from 486.8 billion EGP yesterday. Total trade value amounted to 1.06 billion EGP.
Ehab Saeed, head of technical analysis at Osool Securities Brokerage, said the benchmark off-set its morning gains due to selling pressures on the leading shares topped by the market bellwether CIB and Global Telecom, which failed to penetrate main resistance levels at 37 EGP and 5.5 EGP respectively.
Selling pressures on EFG-Hermes following the failure of a Beltone-Hermes deal, Saeed told The Cairo Post. An alliance between Beltone Financial Holding and business tycoon Naguib Sawiris refused Monday to accept an offered stake of 9.5 percent in EFG Hermes, as they sought a 20 percent stake.
“EGX30 is will probably lose around 40 points during Thursday early trading, before resuming its sideways performance,” Saeed added.
Ibrahim El-Nemr, head of the Technical Analysis Desk at Naeem Brokerage told The Cairo Post that the benchmark approached the resistance level of 8,500 points.
“A breach above 8,500 may send it higher towards 8,800 points,” said the analyst.
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.