CAIRO: The Egyptian Exchange (EGX) rallied Monday, powered by a strong buying spree among local investors.
The EGX30 rose by 1.84 percent, registering 9,779 points, up from 9,603 points Sunday. The small and mid-cap index EGX70 went up by 1.93 percent, reaching 632.7 points, higher than its 620.7 points from its last session and the broader index EGX100 increased by 1.8 percent to register 1,161 points.
Market capitalization added around 2.6 billion EGP ($363.5 million), amounting to 525.6 billion EGP compared with 523 billion EGP Sunday.
“The main index witnessed a significant rise, which pushed to penetrate the important resistance level of 9,750 points, which it has tried to breach above many times before,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
Feky attributed the rise to the buying power on both big and small caps, advising investors to be selective in the next session and not to rush to buy stocks at any prices in order to avoid any risks that may occur “as the penetration of 9,750 points is still not confirmed.”
As for the EGX70, Feky stated that the index managed to advance today after finishing its correction, which led the index before declining near its support level at 600 points.
“The buying power that appeared at the beginning of today’s session led the index to close at the minor resistance level of 633 points, but the index still faces a major resistance level around 666 points, while the support levels lie around 615 points,” Feky said.
He recommended traders enter the stocks near their support levels or when the breach of the resistance level takes place.
“The market rebounded as the benchmark index reached its correction target at 9,600 points in the previous session, restraining the selling powers and enabling the motivated bulls to lead the market toward the successive peaks of 9,750 points, then 9,820 points,” El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post.
Helal added that the main index will target 10,200 points if it manages to penetrate the 9,820-point barrier after the Eid al-Adha holiday assuming a date is finally set for parliamentary elections.