Stock market dealers expect that the Egyptian Exchange (EGX) will breach the 11,600 barrier during this week’s sessions, supported by regained investor confidence.
The increased confidence is due to the current geopolitical calm which has helped the market to break new highs, with the support of foreign and local liquidity.
EGX transactions revived during Sunday’s dealings amid strong buying by the majority of investors. This came off the back of the market-wide optimism that has prevailed with the calm regional conditions, the announcement of a ceasefire in Libya, and the welcoming of all related parties to hold parliamentary and presidential elections in the neighbouring country soon.
The EGX market capitalisation rose by about EGP 10.6bn to close at EGP 627.1bn, amid total transactions amounting to about EGP 1.6bn.
Rania Yacoub, Chairperson of Three Way Securities, said that breaking the barrier of 11,200 points is a positive sign due to the significant return of liquidity to the market.
She expects that the benchmark index EGX30 will target the 11,600 points, in conjunction with the market positivity and the return of liquidity injected by individuals.
Yacoub pointed out that the return of individual investors was clearly reflected in the performance of EGX70 EWI during the past month, reinforcing the positive rise of the market until the end of the year.
On Sunday, the EGX30 increased by 2% to reach 11,391 points, and the EGX70 EWI also rose by 2.8% to end trading at 1,740 points. The rises included the broader EGX100 EWI, which increased by 2.36% to reach 2,638 points.
