EGX hits new high as heavyweight CIB soars
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) rebounded Monday and the benchmark index EGX 30 recorded a new 6-year high amid positive performance from blue chips and strong purchases from Arab and foreign traders.

The EGX30 rose 1.32 percent to hit 9,237 points, compared to 9,117 points Sunday. The small and mid-cap index EGX70 added 0.22 percent, registering 634 points compared to 632.9 points, and the broader index EGX100 also edged up 0.72 percent to reach 1,132 points.

Market capitalization gained around 3.7 billion EGP ($517.4 million), registering 512.3 billion EGP and up from 508.6 billion EGP last session.

“The benchmark index managed to penetrate the 9,200-point resistance level amid high trade volume that registered 725 million EGP, up from the 603 million EGP daily average since July,” Osama Naguib, head of technical analysis at Arab Finance, told The Cairo Post Monday.

Naguib added that the profit taking which emerged last session retracted quickly as the leading stocks targeted higher prices and reached 3-year highs, while the market bellwether CIB reached its all-time highest price.

“Blue chips are still likely to continue the rally in the coming few sessions and the market will probably move toward 9,400 points to 9,500 points soon,” Naguib said.

“The benchmark index managed to breach above 9,200 points due to a CIB hike, which now represents around 26 percent of the index amid upbeat investor sentiment,” Ahmed Abdel Rahman, the chief technical analyst at Helwan Securities, told The Cairo Post Monday.

Abdel Rahman said the current level is an opportunity for short-term profit earning, and said 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.

The EGX closed on a mixed note Sunday and market capitalization shed around 1.4 billion EGP due to profit taking after the market hit a 6-year high last week.

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