EGX gains 11B EGP in a week powered by Suez Canal oversubscription
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) indexes rose this week and market capitalization gained around 11 billion EGP ($1.53 billion) backed by upbeat investor sentiment over mass demand for subscriptions in Suez Canal investment certificates.

The benchmark index EGX30 added 2.67 percent to close the week at 9,729 points compared to 9,475 points last week.

The small and mid-cap index EGX70 rose by 3.3 percent to end the week at 631.9 points, compared with 611 points last week. The broader index EGX100 also rose by 3 percent to close at 1,152 points, compared to 1,118 points a week earlier.

“The benchmark index managed to resume its uptrend toward 9,600-9,700 points and breached above this level, closing the week at 9,729 points backed by the rebound of some blue chips and topped by the heavyweight CIB stock,” Ehab Saeed, Osool Securities Brokerage technical analysis head, told The Cairo Post.

“Traders’ upbeat sentiment about the close of Suez Canal investment certificates subscriptions after they raised around 60 billion EGP within 8 days only boosted the market performance,” he added.

Saeed attributed the rally to the positive performance of some leading stocks, led by the market bellwether CIB, EFG-Hermes and Talaat Moustafa.

“CIB has eventually penetrated its previous peak near 48.50 EGP to approach and close near its all-time price hike at 50 EGP,” Saeed said.

He added that EFG-Hermes also resumed its upward movement and breached above its former resistance level near 19 EGP, ending Thursday at 19.30 EGP.

Housing stocks resumed their positive performance led by Heliopolis, Madinet Nasr and Sodic, while Talaat Moustafa and Global Telecom stock maintained their sideways trading, the analyst said.

Saeed further noted the EGX70 extended its corrective rebound toward 630-635 points. “Most small and mid-cap indexes started an upward correction to overcome part of their loss during the previous week,” he added.

The analyst said the EGX30 will find its resistance level near 7,750 points, and he had high hopes for growth. “A breach above this level may push the benchmark toward 10,000 points in the short-term,” he said.

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