CAIRO: The Egyptian Exchange (EGX) surged collectively during August amid upbeat investor sentiment followed the launch of launching the Suez Canal expansions
During the course of the month, the benchmark index EGX30 hiked from 8,826 points to 9,446 points, marking a 7 percent increase. The small and mid-cap index EGX70 also jumped 5.13 percent to hit 660 points, compared to 628 points at the end of July.
The broader index EGX100 also added 5.5 percent to end the month at 1,170 points, compared with 1,109 points at July-end. Market capitalization gained more than 22.8 billion EGP ($3.18 billion,) to reach a total of 523.8 billion EGP, compared with 501 billion EGP at the end of July.
“The market managed to extend its uptrend during August as the indexes and most stocks were able to achieve their short-term targets after crossing many key resistance level amid great purchasing spree and high turnover, namely during the first two week of the month which witnesses the announcement of the Suez Canal expansions,” said Mona Moustafa, a technical analyst at the African Economic Group.
The EGX30 showed a great performance during August as it managed to penetrate 9,000 points toward the strong resistance level of 9,500 points, which the index failed to cross in August due to selling pressures, pushing the index in sideways trading, Moustafa added.
“The heavyweight CIB’s price upturn to register its all-time high at 47 EGP was a key reason behind the benchmark’s rally last month,” Moustafa detailed.
EGX indexes are expected to perform positively during September, resuming the uptrend toward their targets. The benchmark is targeting (10,000-10,200) points, while the EGX70 will target 711 points in October and 790 points by the end of 2014, the analyst predicted.