CAIRO: The Egyptian Exchange indexes (EGX) collectively declined during Thursday’s mid-session, and market capitalization lost 4.2 billion EGP ($ 597.4 million) due to selling pressures on some blue chips, led by foreign traders.
The benchmark index EGX30 significantly fell 1.37 to hit at 8,219 points, down from 8,333 points on Wednesday. The small and mid-cap index EGX70 also dropped 0.48percent to reach 607 points, and the broader EGX100 index lost 0.65percent to register 1,058 points.
Market capitalization lost 4.2 billion EGP, reaching 479 billion EGP, compared to 483.2 billion EGP on yesterday.
Ehab el-Saeed, head of technical analysis at Osool ESB Securities, attributed the EGX’s decline to foreign investors tending to profit taking, mainly from telecom sector stocks, including Global Telecom and OTMT, in addition to some real estate stocks, most notably Sodic, Amer Group and Palm Hills.
In a phone interview, Saeed added that “EGX will keep moving sideways with no incentives and the significant immobility of market bellwether CIB,” expecting EGX30 to offset its loss and rebound by the end of the session to approach 8,305 points.
The analyst reiterated his positive long-term outlook for EGX performance, and said he expected a big leap in the wake of coming presidential elections, which will take place on May 26 and 27.
Also on Thursday, foreigners’ net sell-offs registered 105.7 million EGP, while Egyptian and Arab net purchases reached 151 million EGP and 53.5 million EGP respectively.
During Wednesday trading, the EGX ended in the red, failing to maintain morning gains and market capitalization lost 2 billion EGP ($284.49 million) due to selective profit taking on some blue chips, topped by Global Telecom.
EGX30 dropped 0.45 to end at 8,333 points, down from 8,369 points on Tuesday, the EGX70 also fell 0.84 percent to reach 610 points, and the broader EGX100 index fell 0.87 percent to register 1,065 points.