EGX loses 2.6B EGP amid sideways movement
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange indexes ended on a mixed note Sunday, and market capitalization lost 2.6 billion EGP (U.S. $ 371.7 million), amid selective profit taking on blue chips headed by telecom sector stocks.

The benchmark index EGX30 fell 0.57 percent to hit 8,247 points, compared to 8,294 points on Wednesday. Meanwhile, the small and mid-cap index EGX70 gained 0.15 percent to close at 611 points, and the broader EGX100 index also edged up 0.02 percent to reach 1,067 points.

Market capitalization lost roughly 2.6 billion EGP, reaching 479.7 billion EGP, compared to 482.3 billion EGP on Wednesday, the last session before Sinai Liberation Day celebrations.

Technical analysis advisor at Pioneers Holding Hossam Helmy attributed EGX30’s decline to selling pressures on the blue chips, namely the telecom sector topped by OTMT and Global Telecom, while the bellwether CIB moved in sideways.

“EXG is likely to move in sideways with a downward tendency due to minor profit taking after EGX30 managed to penetrate 8,100 points for  a fourth session in a row, testing a new resistance level at 8,400 points,” Helmy told The Cairo Post Sunday.

This performance gives short-term investors an opportunity to carry out rapid trades to achieve profits, but medium and long-term investors should not sell during this wave, head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post Sunday.

Egyptians and foreigners’ net sell-offs recorded 10.47 million EGP and 4.25 million EGP respectively, while Arabs’ net purchases totaled 14.7 million EGP on Sunday.

On Wednesday, EGX indexes showed a mixed performance, and market capitalization lost 2.2 billion EGP (U.S. $ 314.5 million). EGX30 edged up 0.31 percent to hit 8,294 points, compared to 8,269 points on Tuesday, while EGX70 fell 0.7 percent to 610 points, and the broader EGX100 index also lost 0.67 percent to reach 1,067 points.

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