CAIRO: The Egyptian Exchange (EGX) ended on a positive note Monday, powered by a strong buying spree among local and foreign retailers.
The EGX was also pushed by Orascom Telecom Media and Technology’s (OTMT) announcement of reaching an agreement to sell its stake in the Egyptian Company for Mobile Services (ECMS), to the French company Orange in return for 209.6 million euros ($233 million.)
The benchmark index EGX30 ended up 1.12 percent, registering 9,601 points, compared to 9, 494 Sunday. The small and mid-cap index EGX70 added a slight by 0.16 percent to hit 572.6 points, up from 573.5 points in its last session. The broader index EGX100 also went up 0.18, registering 1,141 points.
Market capitalization declined to 517.2 billion EGP, compared to 513.7 billion EGP Sunday.
“The benchmark closed on a positive note as it managed to advance from the beginning of the session due to the buying power that happened at most of stocks, pushing the index to skip the resistance level of 9,600 points,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Meanwhile, selling pressure appeared from profit takers after the mid-session, said Gamal.
Short term investors are advised to reduce their position at resistance levels, and activate their stop loss tactic to avoid any possible risks, while medium term traders are recommended hold on their position, the analyst concluded.
ECMS is operating under the Mobinil brand and is one of Egypt’s leading mobile telecom providers. Under the agreement between Orange and OTMT, which is owned by Egypt’s business tycoon Naguib Sawiris, Orange will purchase all the shares and voting rights held directly or indirectly by OTMT in the ECMS, according to a Monday statement from OTMT.
Mobinil was the top gainer, adding around 9.99 percent Monday.