CAIRO: The Egyptian Exchange (EGX) rebounded Wednesday following a two-day plunge over increasing panic after the Egyptian Army launched airstrikes on alleged havens of the Islamic State group in eastern Libya Monday.
The strikes, which killed around 50 militants in eastern Libya’s port city Derna, was a response to the Sunday release of a video showing the mass beheading of 21 Egyptian Copts who had been kidnapped in early January.
The benchmark index EGX30 added 1.1 percent, registering 9,537 points, compared to 9,433 Tuesday. Also, the small and mid-cap index EGX70 rose by 1.36 percent to hit 577.6 points, up from 569.9 points in its last session. The broader index EGX100 increased by 1.22 percent, recording 1,146 points.
Market capitalization edged up to 521 billion EGP ($66.3 billion,) compared to 517.1 billion EGP Tuesday.
“The benchmark managed to advance and reached near its resistance level of 9,580-9,600 points. The index is expected to breach this level and hold steady at the next session,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Gamal added that the EGX30 is facing a correction phase, meaning that a reducing position is safer for short term investors as there is a possibility to slip once more toward the support level of 9,340 points.