Mid-session: EGX rebounds backed by telecom stocks
Egyptian stock exchange in Cairo - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) rebounded during Wednesday’s early and mid-session trading, boosted by positive performance of telecom sector stocks, namely Global Telecom Holding (GTH).

The rise followed GTH’s extraordinary general meeting (EGM) approving Tuesday the sale of its 51 percent stake in Orascom Telecom Algérie to the Algerian National Investment Fund for $2.6 billion, according to a Wednesday statement.

The benchmark index EGX 30 rose by 0.56 percent to hit 9,411 points, compared to 9,359 points Tuesday. The small and mid-cap index EGX70 added 0.66 percent, registering 661.5 points, up from 657 points in the last session and the broader index EGX100 also edged up 0.48 percent to reach 1,171 points.

Market capitalization gained around 3.2 billion EGP ($447.39million), reaching 523.8 billion EGP, and down from 520.6 billion EGP last session.

Mona Moustafa, technical analyst at the African Economic Group, told The Cairo Post that the market is likely to witness a slight rebound Wednesday in an attempt to off-set its loss for two sessions in a row.

Meanwhile, traders will tend to take advantage of the rebound by resuming profit taking. “This will trigger the selling pressures that could drive the market toward the support level without hurting the stocks dramatically,” Moustafa added.

EGX30 is still moving sideways between the resistance level of (9,405-9,500) points and the support level of (9,290-9,150) points, Moustafa said. Next resistance stands at 9,720 points and next support stands at 9,310 points, she added.

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