CAIRO: The Egyptian Exchange (EGX) reversed its losing streak Tuesday after reducing morning losses following the official announcement of Dar Al-Handasah as the winning consortium that will plan the development of the Suez Canal Axis project.
The benchmark index EGX 30 added 0.85 percent to hit 9,395 points, compared to 9,316 points Monday. The small and mid-cap index EGX70 went up 1.47 percent, registering 658 points, up from 648 points, and the broader index EGX100 also increased 1.33 percent to reach 1,172 points.
Market capitalization gained around 3.1 billion EGP ($433.4 million,) recording 519.8 billion EGP, up from 516.7 billion EGP last session.
“EGX 30 is looking bullish despite the current profit taking activities; therefore, we expect it to resume its upward direction soon,” Ibrahim El-Nemr, head of the Technical Analysis Desk at Naeem Brokerage told The Cairo Post.
“A rebound from the support range of 9,100 points may send it higher towards 9,700 points as a next target,” Nemr added, advising investors to buy on dips, with stop-loss limit set at 9,070 points.
“EGX30 was targeting 9,500 during the last few sessions and the index reached 9,432 points which is a profit taking zone,” Dr. Ghada Ibrahim, financial analyst at Capital Securities Brokerage, told The Cairo Post.
Profit taking from the heavyweight stocks could drive the index toward 9,250 points as a first support level, Ibrahim said, adding that “the market needs a corrective wave where traders could hold their breath and purchase other promising stocks.”
Ghada predicted the EGX could witness another slide in conjunction with the announcement of the regulations of the Suez Canal investment certificates’ subscription that may push the main index to 9,100 points and probably to 8,800 points.
Meanwhile, the analyst reiterated her positive outlook for the market uptrend on the medium and long-terms. “EGX will target 9,700 points in the coming period,” she concluded.