DUBAI: Commercial International Bank (CIB) lifted Egypt’s stock market early on Monday as the bourse reopened after a long Eid al-Adha holiday.
The main Cairo index climbed 0.7 percent from last Tuesday’s close to 7,398 points. The rise was technically bullish as it confirmed a positive short-term reversal pattern for the market, which has been in a downtrend since February.
The index’s rise above the early September peak of 7,324 points triggered a bullish right triangle formed by the highs and lows since late August; the height of the pattern points the index up to the 8,000-point area in coming weeks.
Most of the 10 most heavily traded stocks were soft on Monday morning but CIB gained 2.0 percent to 53.99 Egyptian pounds in active trade.
In a report on Sunday, NBK Capital maintained a “buy” call on the stock with a fair value of 64.40 pounds. It said that although depreciation of the Egyptian pound, pending government reforms and the feasibility of economic development projects remained risks for CIB, it was attractively valued at 1.6 times its projected book value in 2017.