CAIRO: The Egyptian Exchange (EGX) surged Tuesday and Market Capitalization gained more than 5 billion EGP, powered by positive performance of the heavyweight CIB stock, along with a strong buying spree among local and foreign institutions.
The benchmark index EGX30 rose by 1.82 percent to hit 9,623 points, compared to 9,452 points Monday. The small and mid-cap index EGX70 increased 0.43 percent, registering 669.8 points, up from 666.9 points last session and the broader index EGX100 added 1.01 percent to reach 1,189 points.
Market capitalization gained around 5.3 million EGP ($671.27 million,) reaching 528.8 billion EGP, up from 523.5 billion EGP in its last session.
“The market hit its medium-term resistance level amid high volume and approached its target at 9,700 points which may trigger the selling pressures,” head of technical analysis at Capital Securities Brokerage Noha Raheel told The Cairo Post.
Raheel added that the market medium and long-term indicators remain positive, advising investors to hold the blue chips while monitoring the performance of Ezz Steel, Palm Hills and Citadel.
“Performing better than the main index, the EGX70 violated a key resistance at 666 points and maintained its level above this target,” Raheel said. She predicted that the small- and mid-cap index may reach 700 points in the medium-term.
“The market bellwether CIB managed to breach the resistance level of 47.65 EGP, recording a new all-time high,” Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr told The Cairo Post.
A confirmed breach above 47.65 EGP may send the CIB higher towards 52.50 EGP, Nemr said. “Investors are advised to buy after a confirmed penetration of 47.65 EGP,” Nemr said.