CAIRO: The Egyptian Exchange (EGX) rebounded during Monday’s early and mid-session trading and the benchmark index EGX 30 recorded a new six-year high amid positive performance from most blue chips.
EGX30 rose 1.07 percent to hit 9,214 points, compared to 9,117 points Sunday. The small and mid-cap index EGX70 added 0.34 percent, registering 635 points compared to 632.9 points, and the broader index EGX100 also edged up 0.43 percent to reach 1,129 points.
Market capitalization gained around 2.7 billion EGP ($377.58 million,) registering 511.3 billion EGP, up from 508.6 billion EGP last session.
head of trading at Arab Finance Ahmed el-Rawy attributed the market rally to the significant rise of leading stocks, namely CIB, Talaat Moustafa, and Sodic, enabling the benchmark index to penetrate its strong resistance level at 9,200 points.
“EGX is targeting 9,400 points and could witness minimal profit taking in this area. The market is likely to trade sideways before resuming the rally toward its next target at 9,800 points,” Rawy told The Cairo Post.
“The benchmark index managed to breach above 9,200 due to the hike of CIB which represents around 26 percent of the index amid an upbeat investor sentiment,” Chief technical analyst at Helwan Securities Ahmed Abdel Rahman told The Cairo Post.
Abdel Rahman said the current level is an opportunity for short-term profit-earning, noting that any slide is a chance for medium and long-term traders to take new purchasing positions.
“The low trade volume raises the possibility for profit taking,” Abdel Rahman said.
EGX shut on a mixed note Sunday and market capitalization shed around 1.4 billion EGP ($195.78 million) due to profit taking after the market hit a 6-year high last week.