EGX gains 2B EGP, benchmark seen targeting 8,800
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) indexes ended in the green, getting support from the positive performance of most leading stocks, headed by the market bellwether CIB, followed by EFG-Hermes and Sodic.

The benchmark index EGX30 edged up 0.52 percent to close at 8,637 points, up from 8,593 points Wednesday. The small and mid-cap index EGX70 added 0.34 to end at 615 points, while the broader index EGX100 rose 0.32 percent, to reach 1,089 points.

Market capitalization gained around 2 billion EGP ($279.7 million), registering 494.2 billion EGP, higher than 492.2 billion EGP. Total trade value amounted to 731.3 million EGP, compared to 940 million EGP yesterday.

The highest weighting on the gauge CIB rose 1.13 percent to 38.43 EGP, while real estate SODIC rose 0.49 percent to 39.15 EGP after signing a 300 million EGP loan agreement with Commercial International Bank (CIB) on Wednesday, according to EGX data.

EFG-Hermes stock also soared 3.1 percent to reach its highest level since January, 2011 at 15.65 EGP.

“EGX opened on a decline due to profit taking which started yesterday, but it turned quickly to the green, powered by the motivated buyers amid upbeat investor sentiment about the positive performance of the market, where profit taking is deemed a chance for those outside the market to purchase,” technical analyst at El-Mokattam Securities Brokerage Walid Helal said.

EGX has affirmed its uptrend after the benchmark confirmed the penetration of its previous peak at 8,630 points, Helal told The Cairo Post, adding that the performance of the EGX70 breached above its resistance level at 614 also boosted the market rally.

Helal said he expects that the benchmark will continue it rally, targeting 8,800 points in the coming period.

“The benchmark re-tested its support level again during the early trading, and this generally happens after penetrating a strong resistance level like the 8,600 barrier, in an attempt to confirm this penetration,” Mohamed Gaballah, Trade Manager at Al-Tawfeek Financial Brokerage amid capital market expert told The Cairo Post Thursday.

Gaballah added, “If purchasing power were generated amid high volume after confirming this penetration, the EGX30 will target 8,800 points and this could be achieved soon, but if these purchases and big volume did not appear-and this is highly expected-the benchmark will trade sideways toward 8,800 points within the few coming days.”

EGX indexes ended on a mixed note Tuesday hurt by selling pressures from local and Arab traders, leaving EGX30 down by 0.12 percent and market capitalization shed around 500 million EGP ($69.9 million.)

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