CAIRO: The Egyptian Exchange (EGX) indexes resumed its rally during Thursday’s early and mid-session trading, backed by the positive performance of blue chips, namely the market bellwether CIB stock.
The benchmark index EGX30 rose by 1.14 percent to hit 8,834 points, compared to 8,735 points Sunday. The index managed to penetrate the 8,800 point barrier amid upbeat investor sentiment after Eid al-Fitr holiday.
The small and mid-cap index EGX70 added 0.73 percent to reach 627 points, and the broader index EGX100 also went up by 0.69 percent to reach 1,107 points.
Market capitalization gained around 2.9 million EGP ($405.5 million), registering 500.3 billion EGP, up from 497.4 billion EGP Thursday. Trade value totaled to 829.7 million EGP.
“The benchmark managed to breach above 8,820 points and could witness a wave of profit-earning in the middle of next week before resuming its rally targeting 9,200 points,” chief technical analyst at Helwan Securities and member board of Helwan Holding Ahmed Abdel Rahman told The Cairo Post.
Abdel Rahman attributed the rise to the positive performance of CIB, Talaat Moustafa, Global Telecom and some real estate stock. He expected the benchmark to end today’s session at above 8,840 points.
Reiterating his positive outlook for the market on both the medium and long-terms, Abdel Rahman stressed that the expected profit-earning will not harm the market, but will bolster the uptrend.
“The benchmark reached the major resistance level of 8,825 points; a confirmed breach above this level may send it higher towards 9,300 points as a first target and then 9,700 points as a second target.” Head of the Technical Analysis Desk at Naeem Brokerage, Ibrahim El-Nemr, told The Cairo Post.
Nemr advised investors to buy as long as the indicators are below the stop-loss limit of 8,470 points.
Capital market expert Abdel Rahman Taha had predicted that the stock market will cross 8,800 points, citing positive economic news and public satisfaction with recently adopted economic measures.
“The EGX’s performance has featured the negative effect of the Cabinet’s decision to mull a 10 percent tax on stock market profits and dividends, and the Central Bank of Egypt’s (CBE) decision to raise the interest rate. This gives positive indicators for a short and medium-term rally,” Taha told The Cairo Post Tuesday.
The upcoming donor conference—along with the launch of a national project expected to provide jobs for young people—will revive the faltering economy, and consequently boost the stock market, Taha added.
“Such incentives could drive the benchmark index EGX30 to penetrate the 9,000-point barrier, targeting 10,500 points, while the consequences of cutting subsidies along with the oil price hike have been watered down,” he said.