CAIRO: The Egyptian Exchange (EGX) rebounded at the open of Thursday’s session powered by a strong buying spree from Arab traders.
The benchmark index EGX30 rose by 0.84 percent, registering 9,574 points, up from 9,450 points Wednesday. The small and mid-cap index went up by 0.61 percent, recording 622 points compared to 618.4 points in the last session. The broader index EGX100 also increased 0.51 percent to register 1,135 points.
Market capitalization added around 8 billion EGP ($1.11 billion,) totaling 522.7 billion EGP, compared to 514.7 billion EGP Wednesday.
Despite the morning rebound, Mona Moustafa, a technical analyst with the African Economic Group, predicted that the market would resume its limited slight profit taking wave near current resistance areas.
The impact of this profit taking wave will be clearly seen on indexes, but will not harm the stocks, Moustafa told The Cairo Post Thursday.
According to the analyst, the benchmark index has resistance between 9,530 and 9,600 points and its first and second support at 9,297 and 9,150 points, respectively.
“Traders are recommended to monitor their shares closely, and be selective while purchasing strong stocks that reach main support levels in dips and to save liquidity for a buy signal,” she concluded.
The stock market lost ground Wednesday as selling pressures continued after the main index rallied to hit a three-week high over the past few sessions.