EGX hits new 6-year high powered by blue chips
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) shut on a collective rise Thursday and market capitalization gained around 1.3 billion EGP ($181.75 million), boosted by a buying spree among foreign investors and local institutions.

The EGX30 added 0.76 percent to hit 9,723 points, compared to 9,650 points Thursday. The small and mid-cap index EGX70 rose by 0.14 percent, registering 660.8 points, up from 659.9 points last session and the broader index EGX100 increased by 0.38 percent to reach 1,181 points.

Market capitalization amounted to 530.4 billion EGP, compared to 529.1 billion EGP in its last session.

“The market extended its rally today 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.

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 until reaching targets in the coming period.

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