CAIRO: The Egyptian Exchange (EGX) shut on a mixed note Monday, as the benchmark EGX30 ended up 0.78 percent, backed by institutions’ purchases.
The benchmark closed at 9,713 points, compared to 9,638 Sunday. In turn, the small and mid-cap index EGX70 lost 0.28 percent to hit 566.4 points, down from 567.9 points in its last session. The broader index EGX100 also almost flat, edging only 0.03 percent up, registering 1,136 points.
Market capitalization inched up to 518 billion EGP, compared to 516.6 billion EGP Sunday.
“The benchmark managed to advance for the 3rd session in a row due to the buying power that appeared from the beginning of the session at most of index movers, leading the index to sustain above the support area of 9,600 points,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
On the other hand, Gamal Eldin predicted “a soon test for the resistance level of 9,800-9,830 points, amid significant improvement in turnover in the coming few sessions.”
He explained that the market faces 9,800-9,830 points as a resistance level, followed by 10,000 points, while the area of 9,580-9,600 points acting as first support level followed by 9,400 points.
“Investors are advised to hold on their positions and buy on dips near support levels. They also should activate their stop-loss tactic to avoid any risks that may occur,” the analyst concluded.
Mohamed Gaballah, a capital market expert, said the market is seen as bullish this week ahead of the upcoming Egypt Economic Development Conference (EEDC,) scheduled to be held in the resort town of Sharm el-Sheikh March 13-15.
Egypt plans to promote 60 projects at the much-publicized economic conference, with the aim of luring fresh investments to boost its limping economy.
In comments to The Cairo Post, Gaballah said: “The benchmark is expected to advance toward 9,800 points as several stocks have given strong buy signals recently not only the heavyweight CIB.”