EGX rebounds powered by non-local purchases at open
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) rebounded at open of Tuesday’s session boosted by Arab and foreign purchases.

The benchmark index EGX30 rose by 0.44 percent, registering 9,162 points, up from 9,122 points Monday. The small and mid-cap EGX70 added 0.5 percent, recording 631.4 points compared to 628 points in the last session , and the broader index EGX100 also increased by 0.37 percent to register 1,126 points.

Market capitalization gained around 800 million EGP ($111.84 million,) totaling 540.9 billion EGP compared to 540.1 billion EGP Monday.

Mona Moustafa, a technical analyst at African Economic Group, told The Cairo Post that the market will probably show a mixed performance in the coming period as the EGX30 will focus on sustaining its position above the main support levels, despite the morning rebound.

Moustafa also noted that the benchmark is showing technical indicators that the sideways trend is set to end, as the bulls are expected to emerge once again to restrain the plunge amid a wave of selective purchases of blue chips.

According to the analyst, the EGX30 has resistance at 9,330 points, followed by 9,580 points, and support at 9,030 points to 8,827 points.

“Short-term traders are recommended to monitor the stock performance and trading volume carefully while conducting some trade for profit taking. Meanwhile, medium and long-term investors are advised to accumulate their purchases during slight dips and to save liquidity for buying signs,” she concluded.

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