CAIRO: The Egyptian Exchange (EGX) indexes rebounded during Tuesday’s early and mid-session trading, recovering from two days of negative performance due to some negative news.
The slide followed a Thursday decision of the Central Bank of Egypt’s (CBE) to raise interest rates. An attack in Wadi Gedid governorate that killed 22 border guards in a shootout at a security checkpoint Saturday afternoon, in addition to Gaza violence also contributed to the decline.
The benchmark index EGX30 rose 0.97 percent to hit 8,553 points, up from 8,471 points Monday. The small and mid-cap index EGX70 added 0.41 percent to reach 615 points, and the broader index EGX100 also edged up 0.45 percent, to reach 1,087 points.
Market capitalization added around 2.6 billion EGP ($363.5 million,) registering 491.4 billion EGP, up from 488.8 billion EGP yesterday. Total trade value amounted to 129 million EGP.
“The benchmark retreated from its resistance level of 8,640 points. This may drag it to support level of 8,400 points,” Head of the Technical Analysis Desk at Naeem Brokerage, Ibrahim El-Nemr, told The Cairo Post.
“A bounce from 8,400 may send it higher towards 8,640 and then 8,800 points,” added the analyst. He advised investors to buy near supports with stop-loss limit set at 8,395 points.
EGX indexes ended on a mixed note Monday and market capitalization shed around 3 billion EGP ($419.49 million) amid selling pressures, mostly from local institutions.
The benchmark index fell 1.22 percent to hit 8,471 points, while small and mid-cap index EGX70 added 0.37 percent.