CAIRO: The Egyptian Exchange (EGX) rebounded during Monday’s early and mid-session trading amid sideways movement, boosted by positive performance of small and medium stocks.
The benchmark index EGX30 rose 0.63 percent to hit 8,453 points, down from 8,401 points Sunday. The small and mid-cap index EGX70 added 0.22 percent to hit 605 points and the broader index EGX 100 also went up 0.21 percent to reach 1,068 points.
Market capitalization gained around 1.2 billion EGP ($167.8 million), registering 486.9 billion EGP, higher than 485.7 billion EGP Sunday. Total trade value amounted to 235.77 million EGP.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), said the market is trading sideways since the beginning of July, in anticipation of some positive news and incentives.
“The benchmark respected its support level at 8,380-8,400 points and rebounded from yesterday’s decline which coincided with a very weak volume,” said Helal, who considered this a positive indicator that the buyers still dominate the market more than the sellers.
The market is expected to maintain its sideways trading during the rest of the session, but it is likely to witness greater purchases Tuesday, as long as the benchmark remained above its support level, added the analyst.
“Upon penetrating the 8,550 barrier, EGX30 will end its medium-term sideways trading to start a new upward wave,” he said.
Head of the Technical Analysis Desk at Naeem Brokerage, Ibrahim El-Nemr, told The Cairo Post the benchmark retreated from its resistance level of 5,545 points. “This may drag it to the support range of 8,235 points to 8,250 points,” he added.
“A bounce from 8,250 may send it higher towards 8,500 once again,” said the analyst, advising investors to buy near supports, with stop-loss limit set at 8,035.
The EGX index lost ground Sunday, harmed by selling pressures from local and Arab retail investors as well as foreign institutions.