EGX gains 9B EGP this week buoyed by launching Suez Canal projects
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) surged this week, amid investors’ bullish sentiment driven by the launch of two mega projects in the Suez Canal zone by President Abdel Fatah al-Sisi.

EGX was also supported by ending some precautionary measures that were adopted after the January 25 Revolution in 2011 as trading rates returned to normal levels.  According to the system, EGX returned Thursday to the price discovery session and unified price limits for the main market at 10 percent and NILEX at 5 percent.

During the course of the week, the benchmark index EGX30 jumped 3.7 percent to end the week at 9,152 points, the highest level since August. The small and mid-cap index EGX70 also rose 0.74 percent to hit 632 points, compared with 628 points last week.

The broader index EGX100 also added 1.5 percent to close the week at 1,125 points, compared with 1,109 points last week. Market capitalization gained around 9 billion EGP ($1.25 billion), amounting to 510 billion EGP, compared with 501 billion EGP last week.

Total trade value amounted to 5 billion EGP, with 1.203 billion securities traded in over 158,000 transactions, up from a total of 1.6 billion EGP while 292 million securities were traded in 44,000 transactions the week prior which was limited to only two trading sessions because of the Eid al-Fitr holiday.

Chief technical analyst at Helwan Securities Ahmed Abdel Rahman attributed the hike to the positive performance of most blue chips this week in light of the positive economic news announced this week.

“Most blue chips hit an all-time high and the benchmark is not likely to breach above 9,200 points before a price correction takes place 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.

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