CAIRO: The Egyptian Exchange (EGX) ended on a collective rise Wednesday amid sideways performance, and the benchmark index EGX 30 managed to hit a new six-year high.
The EGX30 rose 0.15 percent to hit 9,288 points, compared to 9,274 points Tuesday. The small and mid-cap index EGX70 added 0.17 percent, registering 634.9 points and the broader index EGX100 also edged up by 0.46 percent to end at 1,137 points.
Market capitalization gained around 600 million EGP ($83.8 million), registering 513.1 billion EGP and up from 512.5 billion EGP last session.
EGX30 managed to test the resistance zone between (9,280 – 9,340) points and a swap between major stocks took place in today’s session with trading value amounting to 889.6 million EGP, portfolio and asset manager at Cairo Funds Management Amr El-Feky told The Cairo Post.
“We expect a minor correction in the next few sessions which may lead the market to test the round figure of 9,000 points,” Feky added.
He advised short-term investors to avoid higher volatility stocks at these levels and to gain some profits, while medium and longer traders were advised to “hold” on to their positions and buy on dips targeting higher levels.
“The EGX 30 hit its short-term target at 9,300 points yesterday but closed below it. For this reason, we expect the market will resume its bullish uptrend,” head of the Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr told The Cairo Post.
Any profit taking will be an opportunity for the purchasing power to lead the rally toward the next short-term at 9,600 points, Nemr added. The leading stocks showed mixed performance, leading the benchmark index to fluctuate slightly between the green and the red amid sideways trading, Nemr said.