CAIRO: The Egyptian Exchange (EGX) opened on a collective rise Tuesday boosted by purchases from Arab and foreign retailers while local investors mostly sold.
The EGX30 rose by 0.54 percent, registering 8,580 points, and up from 8,534 points Monday. The small and mid-cap index EGX70 also went up by 0.45 percent, reaching 578 points compared to 575.9 points in the last session, and the broader index EGX100 added 0.4 percent to register 1,057 points.
Market capitalization gained around 400 million EGP ($55.92 million), totaling 486.1 billion EGP compared to 485.7 billion EGP Monday.
During the early trading, 75 stocks went up, 12 declined and 16 remained stagnant.
“The EGX 30 reached its support level of 8,470 points. A rebound from that level may send it higher towards 8,800 and then 9,050 points,” Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, told The Cairo Post Tuesday morning.
A breach below 8,470 points may lead the main index to approach the support range of 8,000-8,100 points, Nemr added, advising traders to sell the rally.
“The EGX will trade sideways in the medium-term as its uptrend was broken following the market plunge over the past sessions,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post.
The EGX indices rode a sharp downward correction starting last week, and capitalization shed around 37.9 billion EGP battered 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.