CAIRO: The Egyptian Exchange (EGX) opened the week on a collective rise amid upward sideways trading supported by the positive performance of telecom sector shares.
The benchmark index EGX 30 rose by 0.59 percent to hit 9,491 points, compared to 9,435 points Thursday. The small and mid-cap index EGX70 increased 0.65 percent, registering 633 points, up from 658.7 points last session and the broader index EGX100 also edged up 0.53 percent to reach 1,175 points.
Market capitalization gained around 1.8 billion EGP ($251.72 million), reaching 526 billion EGP, and up from 524.2 billion EGP last session.
“The benchmark index is moving sideways in the short term between 9,300-9,500 points amid an upward corrective wave,” head of technical analysis at Capital Securities Brokerage Noha Raheel told The Cairo Post.
Raheel attributed the morning rise to the bullish performance of the telecom sector along with the heavyweight CIB, which rallied Thursday. Meanwhile, these stocks trimmed their morning gains due to selling pressure from profit takers, she added.
Mona Moustafa, technical analyst at the African Economic Group, had predicted that the EGX will note a positive performance this week where the indexes and stocks will open up in an attempt to penetrate their resistance levels.
Meanwhile, the market still lacks required momentum, as no purchasing powers appeared to enable the indexes to breach their target and confirm surpassing it, Moustafa told The Cairo Post Saturday.
“The EGX, however, will keep its mixed sideways trading between the support and resistance zones until gaining momentum,” she said.