CAIRO: The Egyptian Exchange (EGX) went up collectively this week, and market capitalization added around 14.3 billion EGP ($2 billion) pushed by local institutions’ purchases.
Egypt’s market was pushed by the official launch of the first exchange traded fund (ETF) XT-MISR Wednesday at a total value of 10 million EGP ($1.4 million) divided into 1 million certificates of 10 EGP each.
The benchmark index EGX30 jumped 6.8 percent, closing the week at 9,556, compared to 8,946 points a week earlier. Also, the small and mid-cap index EGX70 added a slight 0.9 percent to 577 points, up from 572 points in the previous week.
“The EGX30 managed to continue its upward move and penetrated its former resistance level near (9,050-9,100) points to hit its target near 9,400 points,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
Saeed added that the EGX30 breached above its target and closed the week near its next resistance level of 9,600 points, pushed by blue chips positive performance topped by the heavyweight CIB.
CIB, the market bellwether, was able to cross its previous peak near 52 EGP and approached its first target at 55 EGP Wednesday to hit its all-time high at 54.5 EGP. But, the stock failed to sustain above this level and shut Thursday near 51.76 EGP, the analyst detailed.
Total trade value and volume saw a significant improvement this week ranging between 216 million EGP to 940 million EGP, with a daily average amounting to 580 million EGP compared to 383 million EGP the week before, Saeed said.
The EGX30 will focus on its next resistance of 9,600 points. “Breaching this level will prevent the index from extending its rise on the short-term,” he said.
Saeed predicted the EGX70 will focus on its resistance near 600 points, noting that penetrating this level may hinder its rebound.