CAIRO: The Egyptian Exchange (EGX) rebounded Monday, buoyed by the collective rise of blue chips and purchases from local and foreign institutions.
The benchmark index EGX30 rose 1.28 percent to hit 8,508 points, up from 8,401 points Sunday. The small and mid-cap index EGX70 added 0.55 percent to hit 607 points and the broader index EGX 100 also went up 0.98 percent to reach 1,077 points.
Market capitalization gained around 3.3 billion EGP ($461.5 million), registering 489 billion EGP, higher than 485.7 billion EGP Sunday. Total trade value amounted to 608 million EGP.
“The EGX rallied during the last hour of Monday’s trading, confirming our positive outlook that the EGX will ride an upward wave which aims for assurance and security about foreign political concerns,” Walid Helal, a technical analyst at El-Mokattam Securities Brokerage told The Cairo Post.
Helal added that the benchmark respected its support level at 8,380-8,400 points and rebounded from yesterday’s decline, which coincided with very weak volume. He considered this a positive indicator that the buyers still dominate the market more than the sellers.
“The EGX30 is expected to penetrate its previous peak at 8,550 points Tuesday, and upon passing this barrier, the benchmark will end its medium-term sideways trading to start a new upward wave,” he said.
The EGX indexes lost ground Sunday and market capitalization shed around 1.8 billion EGP, hurt by selling pressures from local and Arab retail investors as well as foreign institutions.