Stock exchange sees modest gains Thursday despite upcoming protests

The Stock Exchange pulled itself out if a steep week-long side on Thursday, with indicators collectively rising by the end of the trading day.

The boost came with the improved performance of some major stocks amid purchasing transactions by Arab investors and Egyptian institutions, who were eager to take advantage of declining opportunities in stocks and awaiting positive news, especially regarding the much-anticipated International Monetary Fund loan.

Market  capitalization of company shares gained around LE2.8 billion, reaching LE 348.7 billion, while the total volume of the overall trading in the market hit LE330.6 million.

The EGX30 went up 1.19 percent to 4,985 points, while the EGX70, went up by about 0.55 percent to reach 434 points.

The EGX100 went up by 0.74 percent to reach 724 points.

Brokers said Thursday's trading started with a marked decline, but after an hour, a flow of purchases by Arabs investors and Egyptian institutions helped turn indicators upward.

Marwa Hamed, an executive at Watheeqa Securities, said the small recovery was a positive sign, especially because the indicators were on the verge of breaking support points, which which could have led to a violent decline in the market. That would have necessitated increased liquidity and time to recover.

The market gains indicate the possibility of modest recovery in the future, Hamed added, perhaps even in the next two or three sessions. She hoped the main index would hit its target level of 5,200 points again, after it had approached its main support at 4,800 points.

The continuing weakness in liquidity, according to Hamed, could threaten the market's ability to recover over the coming weeks, especially in the absence of positive news and the difficult political situation.

The opposition's calls to demonstrate on Saturday — the anniversary of the foundation of the April 6 Youth Movement — has had little impact on trading, in Hamed’s opinion. Investors' desire market for any gains led them to ignore the negative news, in addition to ignoring the slight decline of foreign exchange reserves, she asserted.

Edited translation from MENA

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