CAIRO: The Egyptian Exchange (EGX) continued its rise and market capitalization gained around 1.9 billion EGP ($265.7million), boosted by foreign and local purchases.
The EGX reversed its downward streak Tuesday after Prime Minister Ibrahim Mahlab had officially named Dar Al-Handasah as the winning consortium that will plan the development of the Suez Canal Axis project.
Benchmark index EGX 30 added 0.45 percent to hit 9,437 points, compared to 9,395 points Tuesday. The small and mid-cap index EGX70 went up 0.15 percent, registering 659 points, up from 658 points, and the broader index EGX100 also increased 0.41 percent to reach 1,177 points.
Market capitalization amounted to 521.7 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 during early trading, despite predictions 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 few upcoming 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 overbought areas.