CAIRO: The Egyptian Exchange (EGX) rallied during Sunday’s early and mid-session trading, and market capitalization gained around 2.4 billion EGP ($335.5 million), boosted by positive performance of blue chips.
The EGX30 added 0.88 percent to hit 9,735 points, compared to 9,650 points Thursday. The small and mid-cap index EGX70 rose by 0.43 percent, registering 662.7 points, up from 659.9 points last session and the broader index EGX100 increased by 0.44 percent to reach 1,182 points.
Market capitalization amounted to 531.5 billion EGP, compared to 529.1 billion EGP in its last session.
“The market opened higher due to the buying power that appeared in the second half of Thursday’s session,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
The EGX30 movers, namely Talaat Moustafa and Ezz Steel, led the index to reach a new 6-year high in today’s session, touching the minor resistance level of 9,730 points, Feky said.
“Despite today’s rally, we can see another sideways range for the market heavyweight CIB until it reaches the next level at 53 EGP,” Feky predicted.
Mohamed Gaballah, a capital market expert, said in a statement to The Cairo Post that the benchmark index is targeting 10,000 points this year and could probably hit 10,300 points.
“Meanwhile, the area between 9,700 points and 10,300 points is bumpy, where the market will likely face resistance at each 50 points, at which point the market will reverse its direction,” Gaballah added.
He advised investors to stop purchasing between 9,700-9,800 points and hold their equities till reaching targets in the coming period.