CAIRO: The Egyptian Exchange (EGX) extended its winning streak at the open of Wednesday’s session, getting support from the positive performance of most blue chips.
The benchmark index EGX30 hiked 2.08 percent higher, registering 8,926 points, up from 8,744 points Tuesday. The small and mid-cap index EGX70 also went up by 1.6 percent, reaching 606.5 points compared to 596.9 points in the last session, and the broader index EGX100 also increased 1.48 percent to register 1,094 points.
Market capitalization gained around 4.5 billion EGP ($629.14 million,) totaling 498.8 billion EGP compared to 494.3 billion EGP yesterday.
During the early trading, 84 stocks went up, 14 declined and 19 remained stagnant. The big caps topped by the market bellwether CIB, Talaat Moustafa and Sodic led the market rally Wednesday.
“The market rally is a normal upward rebound from its sharp dip on Monday,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Wednesday.
Foreign purchases along with Arab traders’ strong bullish sentiment from the last session boosted the main index to breach above its target at 9,000 points, said Abdel Rahman. Meanwhile, he predicted that the EGX30 may ride a downward wave after breaching its next target at 9,160 points.
Ibrahim el-Nemr, Technical Analysis Desk head at Naeem Brokerage, said the EGX 30 inched higher from level of 8,600 points, heading towards the resistance level of 8,835 points.
“A breach above 8,835 points may lead it to 9,050 points and then 9,200 points,” Nemr told The Cairo Post. He advised traders to buy near supports.