CAIRO: The Egyptian Exchange indexes slightly edged down during Monday’s mid-session, amid traders’ growing concerns of a possible sharp decline such as what occurred following Field Marshal Abdel Fatah al-Sisi’s announcement that he will run for president.
The benchmark index EGX30 dropped 0.15 percent to hit 7,863 points, compared to 7,875 points on Sunday. The small and mid-cap index EGX70 fell 0.13 percent at 588 points, and the broader EGX100 index also declined 0.13 percent to 1,032 points.
Market capitalization lost approximately 14o million EGP, reaching 467.62 billion EGP, compared to 467.48 billion EGP yesterday.
“The indexes will move sideways amid investors’ anticipation of a second wave of sharp decline,” head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post.
Describing the market performance as “positive”, Saeed said he expects the EGX will probably end the corrective movement that lasted more than two weeks if the benchmark index EGX30 shoots above the new resistance level at 8,100 points.
He reiterated his positive long-term outlook for the market, expecting EGX30 to rebound and penetrate 8,600 points after the presidential elections, scheduled for May 26 and 27.
EGX indices are swinging between 7,700 and 8,000 points, but they must hit the 8,000 point level for investors to be encouraged to buy shares, Financial Analyst Safwat Abdel Moneam told Mubasher business website.
Egyptians and foreigners’ net purchases registered 2 million EGP and 45,790 EGP respectively, while Arabs’ net sell-offs reached 2.06 million EGP Monday.
The EGX has declined sharply, losing a total 53 billion EGP, amid intensive selling pressures by national institutions since Sisi announced his bid for presidency.