CAIRO: The Egyptian Exchange (EGX) surged this week, amid investors’ bullish sentiment boosted by the two mega projects launched in the Suez Canal zone August 5, in addition to blue chips’ positive performance.
The market shrugged off Thursday’s separated clashes on the first anniversary of the Rabaa al-Adaweya and Nahda Square sit-in dispersal and continued its uptrend to hit a new 6-year high.
During the course of the week, the benchmark index EGX30 went up 2.55 percent to end the week at 9,386 points, the highest level since August. The small and mid-cap index EGX70 also rose 1.59 percent to hit 642.9 points, compared with 632 points last week.
The broader index EGX100 also added 2.14 percent to close the week at 1,149 points, compared with 1,125 points last week. Market capitalization gained more than 6.9 billion EGP ($964.9 million), amounting to 516.9 billion EGP.
“The market continued its uptrend this week after the benchmark index confirmed the penetration of the resistance level of 9,200 points, getting support from the positive performance of most leading stocks headed by the market bellwether CIB stock,” El-Mokattam Securities Brokerage technical analyst Walid Helal
CIB jumped 6.65 percent to hit its all-time high price at 46.86 EGP, compared with 43.94 last week, Helal told The Cairo Post. “The real estate stocks and Global Telecom also supported the market rally, reflecting traders’ selective tendency.”
Helal said he expects the market to continue its bullish uptrend toward 9,600 points next week amid selective purchasing tendency. The EGX70 is targeting 666 points, he added.
Meanwhile, Chief technical analyst at Helwan Securities Ahmed Abdel Rahman said “EGX is likely to see a correction wave in the upcoming sessions as traders are distributing their positions in preparation to gain some profits.”
Most leading shares were topped by CIB, Amer Group, Talaat Moustafa, Hermes, Sodic and Citadel reaching the overbought level, raising the possibility of an upcoming correction that could drive the benchmark toward 9,200 points, Abdel Rahman explained.