CAIRO: The Egyptian Exchange (EGX) surged Thursday and the benchmark index EGX30 approached its strong resistance level at 9,200 amid high volume.
The rally was mainly boosted by a buying spree from Arab and foreign traders after Egypt officially launched two mega projects in the Suez Canal zone Tuesday.
The benchmark index EGX30 managed to shoot above its new 6-year high surpassing the 9,000-point barrier, edging up by 1.45 percent to hit 9,179 points, compared to 9,047 points Wednesday.
The small and mid-cap index EGX70 rose by 0.92 percent registering 635 points, compared to 629 points, and the broader index EGX100 also increased by 0.81 percent to reach 1,129 points last session.
Market capitalization gained around 3.7 billion EGP ($517.4million), registering 510.5 billion EGP, up from 506.8 billion EGP last session.
Ahmed Abdel Rahman, chief technical analyst at Helwan Securities attributed the hike to Arab and foreign purchases, mainly on leading stocks including the Citadel, Talaat Moustafa, Amer Group and Ezz Steel amid an upbeat sentiment among retail traders.
“Most blue chips have hit an all-time high, and the benchmark is not likely to breach above 9,200 points before a price correction takes place in order to protect the uptrend without concerns,” Abdel Rahman told The Cairo Post. EGX30 is targeting 9,670 points to 10,500 points in the medium-term, he added.
El-Mokattam Securities Brokerage technical analyst Walid Helal had expected the benchmark to reach the 9,200 area Wednesday.
“EGX30’s performance remains positive and the market indicators show a tendency to resume the upward movement targeting 9,200 points,” Helal said.
He added that the coming sessions would witness minimal profit taking, giving a chance for purchasing power to enter the market.