CAIRO: The Egyptian Exchange (EGX) surged at open Sunday boosted by Fitch Ratings’ decision to upgrade Egypt’s long-term credit rating from “B-” to “B.”
Today’s hike is also giving signs of recovery from the market plunge over last week’s trading, as market capitalization shed roughly 31.9 billion EGP ($4.5 billion) due to a plunge of crude oil barrel prices below $60.
The benchmark index EGX30 hiked 3.8 percent, registering 8,718 points compared to 8,400 points Thursday. Also, the small and mid-cap EGX70 jumped 2.51 percent, recording 556 points compared to 542 points in the last session. The broader EGX100 index added 2.7 points as well, registering 1,058 points.
Market capitalization gained around 9.4 billion EGP, totaling 485.6 billion EGP compared to 476 billion EGP Thursday.
“Despite the week-long sharp slide, the market is concluding its downward correction wave and will likely resume its upward movement by the last week of December,” Walid Helal, a technical analyst at El-Mokattam Securities Brokerage, told The Cairo Post Sunday.
Helal added that the EGX’s rebound was mainly powered by Egypt’s credit upgrade by Fitch. “However, the recovery is dependent on penetrating the bottom of 8,470 points,” he said.
This breach will confirm that correction has ended and push the market to ride a three- or four-month upward wave, added the analyst.