CAIRO: The Egyptian Exchange (EGX) rallied during Monday’s early and mid-session trading and the benchmark index EGX30 hit its highest level since August 2008 for a second time in less than a week, boosted by the rise of the market bellwether CIB stock.
The EGX30 added 1.19 percent to hit 8,906 points, up from 8,802 points Sunday. Last Thursday, EGX30 recorded the highest daily close since August 2008 at 8,826 points.
The small and mid-cap index EGX70 rose 1.09 percent to reach 630 points, compared to 623 points Sunday, and the broader index EGX100 also increased 0.97 percent to reach 1,114 points.
Market capitalization gained around 4.4 billion EGP ($615.3 million), registering 502.6 billion EGP and down from 498.4 billion EGP Sunday.
“Getting support from the positive performance of the heaviest weight on the gauge CIB, the benchmark confirmed the penetration of the strong resistance level of 8,800 points amid high trade volume compared to Sunday’s session,” said Osama Naguib, head of technical analysis at Arab Finance.
“CIB, which represents 26 percent of EGX30, is moving upward targeting 45 EGP to 47 EGP and this could drive the benchmark toward 9,200 points to 9,300 points,” Naguib told The Cairo Post Monday.
He added that technical indicators on the main index along with the heaviest share reveal that they are into an overbought area to drive selling power soon before resuming the uptrend.
“Other leading stocks including Global Telecom, OTMT, and EFG-Hermes did not cope with the market rally, supporting our prediction of a possible correction.”
Capital market expert, Dr. Abdel Raman Taha said he expects the market to witness a big leap in the coming period, and the benchmark to target 9,200 points to 9,500 points.
“Stocks of sectors that the government plans to develop in the coming period such as real estate, construction, agriculture and energy will have the lion’s share of the expected hike,” Taha told The Cairo Post.