CAIRO: The Egyptian Exchange (EGX) shut on a collective rise coupled with thick liquidity Thursday, pushed by foreign institutions’ buying spree.
The benchmark EGX30 edged up by 1.21 percent, registering 9,576 points, compared to 9,461 Wednesday. Also, the small and mid-cap index EGX70 added 0.9 percent to hit 566.5 points, up from 561.4 points in its last session. The broader index EGX100 also went up 0.81 points, registering 1,131 points.
Meanwhile, market capitalization slipped to 514.8 billion EGP, compared to 515.9 billion EGP Wednesday.
Amr el-Feky, portfolio and asset manager at Cairo Funds Management (CFM), told The Cairo Post the benchmark rebounded from the most important short-term support of 9,340 points, backed by the buying power which appeared after most stocks were at attractive prices near support levels.
Feky added that the market also received support from positive news about the upcoming the economic summit scheduled March 13-15, with 60 countries and more than 20 major international corporations confirming their participation.
“Thursday also was the final day of OC IPO which was behind the thin liquidity in the market for last two weeks,” Feky said.
All these factors led the index to reach near its resistance level of 9,600 points at the end of the week, said Feky, adding that market is expected to hit higher levels in the upcoming sessions.
“Medium term investors are recommended to select their stocks carefully, in order to exceed 2014 targets,” he concluded.