Egypt’s main index bounced back Wednesday after a week of losses made stock prices for the market’s biggest caps attractive to investors, say analysts.
Benchmark index, EGX30, gained 1.28 percent to register 9,304 points on Wednesday and daily stock turnover registered LE716.7 million.
“This is a technical rebound. Stocks have been falling for three days and this session was the fourth, thus following the fall in prices, leading stocks became attractive to investors,” Ehab Saied, member of board of directors at Osool for financial brokerage, told Ahram Online.
“The last two and a half hours of the session saw an unexpected rise in turnover by LE460 million,” Eissa Fathy, vice head of the securities division at Cairo Chamber of Commerce, told Ahram Online.
Selling pressures by Arab and non-Arab foreign investors last session pulled stock prices down, a trend that continued at the beginning of today’s session but changed direction by its end when prices became attractive to investors, explained Fathy.
Foreign investors were net buyers to the tune of LE39.4 million while Egyptian investors were net sellers in the tune of LE43 million.
“Foeign investors were net sellers on Tuesday's session due to some deals but foreigners have been on a buying trend in the past four weeks,” Saied said.
Market bellwether, Commercial International Bank, climbed 1.99 percent to LE50.98 per share and Orascom Telecom for Media and Technology increased 0.74 percent to LE1.38 per share.
Real estate leading stocks were also in the green. Talaat Moustafa Group increased 2.1 percent to LE10.28 per share and Six of October for Development and Investments Company inched up 2.66 percent to LE15.56 per share.
Broader index, EGX70, inched up 0.05 percent.