CAIRO: The Egyptian Exchange (EGX) rebounded at the open of Sunday’s session, and market capitalization gained around 3.1 billion EGP ($433.4 million) backed by the positive performance of blue chips headed by Talaat Moustafa, EFG-Hermes and the market bellwether CIB.
The benchmark index EGX30 rose by 1.26 percent, registering 8,701 points, up from its 11-month low of 8,593 points Thursday. The small and mid-cap index EGX70 also went up by 1.06 percent, reaching 578.2 points compared to 572.2 points in the last session, and the broader index EGX100 increased by 0.89 percent to register 1,059.8 points.
Market capitalization rose to 489.8 billion EGP compared to 486.7 billion EGP Thursday. During early trading, 83 stocks went up, 22 shares declined and 23 remained stagnant.
“The benchmark index opened on a 1.8 percent increase, powered by the positive performance of the U.S. and European markets on Friday, which also boosted the Saudi Arabian and Dubai capital market with a more than 3 percent hike,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Sunday.
Abdel Rahman said he expects the EGX to show positive performance this week and sustain above 8,800 points once again.
Last week, the EGX indexes plummeted and market capitalization shed around 37.9 billion EGP ($5.3 billion) amid intensive selling pressures triggered by the collective dip of global markets due to mounting concerns about looming economic turmoil.
The gloomy economic forecast came largely in response to the IMF downgrading its global growth forecast for both 2014 and 2015.
The fund expected world economic growth to hit 3.3 percent in 2014, down 0.1 percent from its July forecast. While in 2015, it predicted 3.8 percent growth, down 0.2 percent from earlier expectations.