By Ramy Sameeh:

Cairo-Mubasher The Egyptian Exchange (EGX) rose in January by its highest levels in eighteen months, while market capitalization gained around EGP 5.3 billion ($698 million).

The benchmark index EGX30 gained 10.3% during the month, which is the biggest gains since July 2013, to close at 9843.1 points; near its highest levels in more than six and a half years.

Mohamed Al-Aasar, head of technical research, NBK Capital, said blue chips recovered strongly in January from a slump that lasted for the last three months in 2014 due to oil fall.

Meanwhile, small and mid-cap stocks did not achieved strong rises, as most of them were pressured by profit taking except for slight rises in the last sessions in the month, the analyst added.

The EGX70, which measures small and mid-sized stocks, rose 2% to 576.56 points, while the broader index EGX100 gained 5% to 1145.05 points.

Several stocks made strong leaps fueled by announcing positive news like capital increases or launch of new projects, Al-Aasar stated.

Beltone stock rose in January by more than 53% to EPG 28.78 after the company announced a capital increase.

El Sewedy also soared 24.5% to EPG 8.55 upon the launch of several projects.

Ehab Said, head of research, Osool Securities, said the outlook remains positive for the Egyptian market in February amid improving economic conditions. He expected the upcoming economic summit to lure more foreign investments and thus bolster the economy.

According to the analyst, EGX30 will target 10200-10600 area provided that it steadies above 9600 points, while EGX70 will likely continue its upward movement towards 595-600 points.

Translated by Sayed Abdulraman

Photo Credit: Arabianeye-Reuters