CAIRO: The Egyptian Exchange (EGX) continued its winning streak and market capitalization gained more than 3.1 billion EGP ($433.4 million,) boosted by positive performance of the heavyweight CIB along with local purchases.
The EGX reversed its losing streak Tuesday boosted by 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 1 percent to hit 9,489 points, compared to 9,395 points Tuesday. The small and mid-cap index EGX70 went up 1.3 percent, registering 666.6 points, up from 658 points, and the broader index EGX100 also increased 1.37 percent to reach 1,188 points.
Market capitalization amounted to 522.9 billion EGP, up from 519.8 billion EGP last session.
“The benchmark index unexpectedly surged and approached its second resistance level at 9,500 points, despite expectation of a short-term corrective wave after penetrating the 9,450 barrier,” Noha Raheel, head of technical analysis at Capital Securities Brokerage, told The Cairo Post.
Raheel said the CIB’s hike led the market rally, adding that EGX30 is likely to target 9,700 points in the coming few sessions if the index maintains its upward performance.
“Meanwhile, the benchmark could slip to (9,300-9,350) points if a correction takes place,” said Raheel, reiterating that the market needs this correction as traders could take a break and gain some profits while others can purchase some promising shares.
Raheel noted that the market will maintain its uptrend as long as the EGX remains above the 9,000 level. She also predicted that the EGX70 will lead the market rally in the coming period as most EGX30 stocks have reached the overbought areas.