Mid-session report: Market slips on profit taking after Sisi resignation
Egyptian Exchange - AFP/Marco Longari

CAIRO: Egyptian Exchange (EGX) indexes collectively declined on Thursday’s mid-session, due to intensive profit taking by Egyptian foundations after former Minister of Defense Abdel Fatah al-Sisi submitted his resignation Wednesday and announced his bid for the presidency.

The benchmark index EGX30 fell by 0.26 percent to hit 8,458 points, failing to keep its morning high record of 8,597 points.

The small and mid-cap index EGX70 dropped by 0.61 percent to close at 651 points, and the broader EGX100 index also declined by 0.54 percent to 1,130 points.

Market capitalization gained 300,000 EGP (43,000) reaching 502.6 billion EGP, compared to 502.3 billion EGP yesterday.

Head of technical analysis and board member of Osool ESB for Securities’ Brokerage, Ihab el-Saeed, attributed EGX30’s decline to selective profit taking by Egyptian institutions following the positive performance of some blue chips, especially Gobal Telecom, OTMT and CIB.

Advisor of technical analysis at Pioneers Securities Hossam Helmy told The Cairo Post that the market will probably close in the red zone , expecting EGX30 to drop to 8,250 points, if the profit taking tendency continues next week.

“Egyptian institutions gained at least 15 percent during today’s sell-offs, while individual investors incurred a great loss due to this fall,” Helmy added

However, institutions are also expected to tend towards purchasing at the end of Thursday’s session, leading the market to close in the green zone, Helmy said, adding that indexes would then move in sideways next week.

Egyptian and Arab traders’ net sell-offs reached 19.7 million EGP and 4.3 billion EGP respectively, while foreigners’ net purchases registered 24 million EGP.

On Wednesday, the indexes ended on a mixed note, with the benchmark index EGX30 slipping by 0.25 percent to hit 8,480 points, failing to keep Tuesday’s record at 8,510 points.

In turn, small and mid-cap index EGX70 jumped 2.2 percent to close at 655 points, and the broader EGX100 index also rose 1.5 percent to 1,136 points. Market capitalization gained 5.2 billion EGP.

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