CAIRO: The Egyptian Exchange (EGX) rose slightly this week, while market capitalization shed around 1.3 billion EGP ($181.79 million) due to a slump in global markets and Gulf markets as oil prices dipped below $50 per barrel.
Trading was limited to 4 sessions this week as Wednesday’s session was an official holiday in observance of the Orthodox Christmas celebration.
The benchmark index EGX30 went up 0.22 percent, closing the week at 8,946, compared to 8,926 points a week earlier. Also, the small and mid-cap index EGX70 rose by 1.17 percent to 572 points, up from 565 points in the previous week.
“The EGX30 failed this week to penetrate its resistance level near (9,050-9,100) points and slipped sharply Tuesday hammered by the oil price decline, approaching its support level at 8,800 points,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
Saeed added that the EGX30 sustained above 8,800 points and rebounded strongly Thursday, boosted by positive performance of most blue chips that managed to hold above their supports.
CIB, the market bellwether, was able to sustain above its 48 EGP support level and shut Thursday near its resistance at 50 EGP, said the analyst. “A breach above this level this week may push the CIB to re-test its previous peak near 52 EGP.”
Total trade value and volume saw a significant decline this week ranging between 242 million EGP to 525 million EGP, with a daily average amounting to 383 million EGP compared to 545 million EGP the week before, Saeed said.
The EGX30 will focus on its resistance of (9,050-9,100) points. “Breaching above this level may will be an initial sign of completing its medium-term correction to target 9,400 points.”
Saeed predicted the EGX70 will focus on its resistance near 570 points, noting that penetrating this level may push the index may toward (580-585) points.