CAIRO: The Egyptian Exchange (EGX) ended on a positive note after trimming Sunday’s morning rally ahead of the close of the Egypt Economic Development Conference (EEDC,) reflecting investors’ confidence in Egypt’s market.
On the sidelines of the three-day economic summit which kicked off Friday March 13 in Sharm el-Sheikh of South Sinai and will conclude Sunday evening, the Egyptian government signed agreements with an estimated total worth of $130 billion, Investment Minister Ashraf Salman told Youm7.
The benchmark index EGX30 ended with a 0.88 percent rise, registering 9,726 points, compared to 9,640 Thursday. Also, the small and mid-cap index EGX70 added 0.36 percent to hit 558.3 points, up from 556.3 points in its last session. The broader index EGX100 was 0.46 percent up, recording 1,125 points.
Meanwhile, market capitalization dropped to 525.2 billion EGP, compared to 523.3 billion EGP Thursday.
“The benchmark index EGX30 witnessed a sharp advance from the beginning of the session that led the index to approach the resistance area of (9,800-9,830) points due to the strong buying power on blue chips,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
However, this buying spree failed to continue pushing the market to higher levels at the second half of the session, added Gamal Eldin, predicting a decline towards the support level of (9,600/9,580) at the coming few sessions, citing the “weak buying power.”
Long and medium-term investors can hold on their positions, while short- term investors are advised to take profits for trading purpose, and activate their stop loss tactic to avoid any risks that may occur, he recommended.
Mona Moustafa, a technical analyst at the African Economic Group, said: “A bullish sentiment will spread among the investors, which will have a positive impact on the market.
The benchmark faces resistance between 9,800 and 9,940 points, while its support level lies between 9,245 and 9,460 points, Moustafa detailed.