CAIRO: The Egyptian Exchange (EGX) rallied during Thursday’s early and mid-session trading and market capitalization gained 2 billion EGP ($279.7 million) shrugging off separated clashes on the first anniversary of the Rabaa al-Adaweya and Nahda Square sit-ins.
Boosted by the positive performance of the market bellwether CIB stock, he benchmark index EGX 30 managed to penetrate the 9,300 barrier to register a new six-year high after edging up 0.7 percent to hit 9,353 points compared to 9,288 points Wednesday.
The small and mid-cap index EGX70 added 0.74 percent, registering 639.6 points, up from 634.9 points Wednesday. The broader index EGX100 also went up by 0.64 percent to reach at 1,144 points.
Market capitalization amounted to 515.1 billion EGP and up from 513.1 billion EGP last session.
Chief technical analyst at Helwan Securities Ahmed Abdel Rahman attributed the rise to the rally of the heavyweight CIB which soared to 46.5 EGP, up from 44.6 EGP.
“EGX however is likely to see a correction wave in the upcoming sessions as traders are distributing their positions in preparation to gain some profits,” Abdel Rahman told The Cairo Post Thursday.
Most leading shares topped by CIB, Amer Group, Talaat Moustafa, Hermes, Sodic, and Citadel reached the overbought level, raising the possibility of an upcoming correction that could drive the benchmark toward 9,200 points, Abdel Rahman added.
“I expect today’s session to end in the green zone, boosted by local institutions’ purchases aimed to give a positive outlook about the stock market and its ability to rise despite the current political upheaval,” he predicted.