CAIRO: The Egyptian Exchange (EGX) rallied and the benchmark EGX30 penetrated the 8,600-point barrier amid high liquidity Tuesday, boosted by the positive performance of leading stocks and strong purchases from foreign institutions.
The benchmark index EGX30 rose 1.12 percent to close at 8,603 points, up from 8,508 points Monday. The small and mid-cap index EGX70 added 0.86 percent to hit 613 points and the broader index EGX 100 also went up 0.91 percent to reach 1,086 points.
Market capitalization gained around 3.7 billion EGP ($517.4 million), registering 492.7 billion EGP, higher than 489 billion EGP Sunday. Total trade value surged to 1.03 billion EGP, compared to 608 million EGP yesterday.
“The benchmark managed to penetrate its resistance level at 8,550 points amid great volume, thanks to the positive performance of the leading stocks, notably CIB, Sodic and Talaat Moustafa,” Walid Helal, a technical analyst at El-Mokattam Securities Brokerage, told The Cairo Post.
“This penetration confirmed our positive outlook for the market,” said Helal. “The EGX30 will target 9,200 points, but the index is likely to witness some profit taking which will be a good opportunity for purchasing before reaching its peak.”
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 said.
“A bounce from 8,250 may send it higher towards 8,500 once again. On the other hand, a breach above 8,545 may send it higher towards 8,800 points,” Nemr said, advising investors to buy near supports, with a stop-loss limit set at 8,035 points.
Meanwhile, the EGX 70 failed to reach its major support level of 555 points and breached above 600 points, indicating that the bulls are gathering more power. “This power may send it higher towards 630 as a next target,” Nemr said.
On Monday, the EGX witnessed a collective rebound, and the EGX30 rose 1.28 percent to hit 8,508 points, getting support from the positive performance of blue chips and purchases from local and foreign institutions.