EGX trading hall. Ahram Gate.
“Among the main reasons behind the surges in EGX indices are purchases by foreigners and the jump in leading stocks, including the Commercial Bank International (CIB), the biggest stock in the market, which rose by 1.87 percent to reach a value of EGP 60,” Mahmoud Atta, financial market analyst, told Ahram Online.
In contrast to their 30-stock brother, EGX70 and EGX100 achieved little this week. The 100 index inched up only 0.46 percent to end at 5,675.19 points, while EGX70 declined by 0.27 percent to close at 3,828.64 points at the end of the week.
“The expectations for the Central Bank of Egypt (CBE) to hold interest rates unchanged was also a catalyst for the market,” Atta said.
Led by the surge in the main index, market capitalization climbed 3.23 percent to reach EGP 1,356.8 billion.
Foreign investors purchased EGP 887 million stocks in a week more than they sold, while Arabs ended the week with net sales of EGP 172.9 million.
The financial market analyst Atta expects the EGX30 to continue its past growing pace, targeting 20,500 points. He forecasts that EGX70 could reach 3,900 points.