CAIRO: The Egyptian Exchange (EGX) extended its rally at open of Thursday’s session, shrugging off concerns about Islamist calls for anti-regime protests Friday, Nov.28.
The benchmark index EGX30 rose by 0.64 percent, registering 9,299 points compared to 9,234 points Wednesday. Also, the small and mid-cap EGX70 added 0.6 percent, recording 643 points compared to 639.3 points in the last session, and the broader index EGX100 also increased by 0.52 percent to register 1,152 points.
Market capitalization added around 1.2 billion EGP ($168 million,) totaling 522.7 billion EGP, compared to 521.5 billion EGP Wednesday.
Mona Moustafa, technical analyst at the African Economic Group, told The Cairo Post that “the indexes will extend their hike Thursday, citing the current selective buying momentum.”
Moustafa added that traders are anticipating possible unrest or violence during the weekend. “If this day ended peacefully, this will likely fuel trading next week and will motivate traders to inject more liquidity and take more risk, especially for institutions that started to build long-term positions.”
The session is likely to witness minimal profit taking on stocks that surged recently, Moustafa said, noting that retail traders prefer rapid trades.
Moustafa said that the EGX30 has resistance from 9,270 points to 9,330 points, and support from 9,158 points to 9,055 points. She advised traders to watch their stocks carefully while monitoring the turnover to set re-purchasing points.
Egypt’s stock market surged Wednesday propelled by institutions’ strong purchases amid positive performance of blue chips topped by the heavy weight CIB stock followed by Talaat Moustafa.