CAIRO: The Egyptian Exchange (EGX) indexes rebounded Tuesday boosted by the positive performance of some blue chips, topped by market bellwether CIB, and purchases from Arab and foreign institutions and Arab retail traders.
The market recovered from a two-day slide that followed a Thursday decision by the Central Bank of Egypt (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 1.08 percent to hit 8,563 points, up from 8,471 points Monday. The small and mid-cap index EGX70 added 0.54 percent to reach 616 points, and the broader index EGX100 also edged up 0.61 percent, to reach 1,088 points.
Market capitalization added around 2.4 billion EGP ($335.5 million), registering 491.2 billion EGP, up from 488.8 billion EGP yesterday. Total trade value amounted to 426.2 million EGP.
“The EGX positive performance during this session confirms the positive outlook for the market that is near to ending its sideways trend and to ride a new upward wave after the Eid holiday as investors have been accumulating stocks,” El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post.
The heaviest weight on the gauge CIB led the market rally after penetrating its strong resistance at 39 EGP, to target 43 EGP after Eid.
EGX indexes ended on a mixed note Monday and market capitalization shed around 3 billion EGP amid selling pressures, mostly from local institutions.
The benchmark index fell 1.22 percent to hit 8,471 points, while the small and mid-cap index EGX70 added 0.37 percent.