Cairo – Mubasher: The Egyptian Exchange (EGX) surged on Wednesday to close at its highest level in 11 months.
The benchmark index gained 4.97% or 374.75 points, while the trading value exceeded EGP 1 billion supported by the buying activity of the institutions.
Similarly, the small and mid-caps index EGX70 rose 0.58% to 363.88 points, while the broader index EGX100 went up 1.4% to 782.6 points.
The equal weighted index EGX50 hike 2.95% to 1,390.5 points
The market capitalization added around EGP 10 billion, reaching EGP 413.9 billion compared with EGP 403.8 billion in the previous session.
The benchmark succeeded in breaking above the level of 7,700 points amid strong turnover as well as the positive sentiment that controlled the market after the news about Egypt’s talks with the IMF to obtain a loan from the IMF, said Ahmed EL Bagory, Head of technical analysis at Okaz brokerage.
“The benchmark is expected to test the resistance level of 8,000 points in the next session”, said EL Bagory.
Egypt's finance minister Amr El-Garhy announced later last night that the government is looking at about $ 7 billion per year over three years, including $ 4 billion annually from the IMF and a further $ 2-3 billion per year between international bond issuances ($2-3 billion) and budgetary support from the World Bank and African Development Bank ($3 billion over upcoming 2 tranches.
The market witnessed 374 million shares changed hands worth EGP 1.34 billion.
Out of 174 stocks traded today, 118 stocks ended in green zone, while 26 stocks moved lower and 30 stocks remained unchanged.
Local investors ended as net buyers with EGP 34.3 million, while foreign and Arab investors ended as net sellers with EGP 23.4 million and EGP 10.9 million respectively.
