CAIRO: During the course of this week’s sessions, the Egyptian Exchange (EGX) indexes witnessed a collective decline,losing 4.1 billion EGP of capital due to intensive selling by Arab and foreign investors, while Egyptian investors mostly purchased, Al-Ahram reported.
Ihab el-Saeed, head of technical analysis and board member of Osool ESB for Securities’ Brokerage, told The Cairo Post heattributes the decline to a number of leading shares in the EX30 index that caused the EGX main index to fail in registering high resistance levels.
EGX indexes fluctuated at the start of last week’s session as a result of intensive selling by Arab and foreign investors, he said, and several leading shares had surprising performances, including the Commercial International Bank, Global Telecom and Talaat Moustafa Group Holding Company, which pushed EGX indexes to soar and register semi-stable levels by the end the sessions.
Concerning the trade values during last week’s session, Saeed noted that the EGX’s trade value continued declining until reaching 765 million EGP as an average daily trade value.
For indexes, the benchmark EGX30 edged down by 0.47 percent to score 8,256 points, the EGX70 for small and mid-cap enterprises declined by 0.15 percent to hit 609 points, and the broader EGX100 decreased also by 0.27 percent to value at 1,064 points during last week’s sessions, Ahram reported.
Excluding deals, Egyptian investors acquired 80.6 percent of market transactions, while Arab and foreign investors acquired 6.8 and 12.5 percent of transactions respectively, it reported. Foreign investor net purchases were worth 55.9 million EGP while Arab investor net purchases were valued at 1.1 million EGP, it reported.
For next week’s session, Saeed said he expects that the EGX indexes will score new resistance levels, supported by the approach of the presidential elections scheduled for May 26 and 27.
He predicted the EGX30 would receive a resistance level of 8,400 points, and the EGX70 would score a new resistance level of 630 points.