CAIRO: The Egyptian Exchange (EGX) rose collectively this week, although there were only two trading sessions because of the Eid al-Fitr holiday, boosted by positive performance of blue chips amid an investor buying spree.
The rise also comes as 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.
During the course of the week, the benchmark index EGX30 edged up 0.94 percent to end the week at 8,826 points, the highest level since August. The small and mid-cap index EGX70 also rose 1.37 percent to hit 628 points, compared with 619 points last week.
The broader index EGX100 also added 1.2 percent to end at 1,109 points, compared with 1,095 points last week. Market capitalization gained around billion 6.8 EGP ($950.9 million), amounting to 501 billion EGP, compared with 494.2 billion EGP last week.
Total trade value amounted to 1.6 billion EGP, with 292 million securities traded in over 44,000 transactions, down from a total of 4.1 billion EGP and 475 million securities traded in 68,000 transactions the week prior.
“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 board member of Helwan Holding Ahmed Abdel Rahman told The Cairo Post.
Abdel Rahman attributed the rise to the positive performance of some leading shares headed by CIB, Talaat Moustafa, Global Telecom and some real estate stocks.
Reiterating his positive outlook for the market in both the medium and long-terms, Abdel Rahman stressed that the expected profit-earning will not harm the market, but will bolster its uptrend.
Market bellwether CIB hit an all-time high, leading the bullish performance after it announced a 30.8 percent increase in profits during the first half of 2014, according to consolidated financial statements released last week.
“Sisi’s remarks about an upcoming ‘pleasant surprise’ and some mega projects carried some positive indicators for investors, and supported the market’s bullish performance,” capital market expert Dr. Abdel Rahman Taha told The Cairo Post.