CAIRO: Egyptian Exchange (EGX) indexes sharply declined Thursday, due to intensive profit taking by Egyptian institutions after former Minister of Defense Abdel Fatah al-Sisi submitted his resignation Wednesday and announced his bid for presidency.
The benchmark index EGX30 slipped 2.7 percent to hit 8,251 points, failing to keep its morning record at 8,597 points.
In turn, small and mid-cap index EGX70 dropped 4.35 percent to close at 627 points, and the broader EGX100 index also fell 3.72 percent to 1,097 points.
Market capitalization incurred 15 billion EGP losses, reaching 487.4 billion EGP, compared to 502.3 billion EGP yesterday.
“Selective profit taking by Egyptian institutions following the positive performance of some blue chips, especially Gobal Telecom, OTMT and CIB, was behind EGX30’s sharp decline,” Head of technical analysis and board member of Osool ESB for Securities’ Brokerage, Ihab el-Saeed told The Cairo Post.
However, Saeed said he expects the market to offset its loss partially on Sunday, moving in sideways until the upcoming presidential elections.
Advisor of technical analysis at Pioneers Securities Hossam Helmy told The Cairo Post early Thursday that the market will probably close in the red zone, expecting EGX30 to slip 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
Arab and foreign traders’ net purchases reached 30.7 million EGP and 63.5 billion EGP respectively, while Egyptian net sell-offs registered 94.3 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.