CAIRO: The Egyptian Exchange indexes (EGX) collectively ended Thursday trading in the red zone, and market capitalization incurred more than 5.5 billion EGP ($ 781.8 million) in losses, reaching 477.7 billion EGP compared to 483.2 billion EGP Wednesday amid selling pressures on blue chips led by foreign investors.
The benchmark index EGX30 fell a significant 1.46 percent to hit 8,211 points, down from 8,333 points Wednesday. The small and mid-cap index EGX70 also dropped 0.74 percent to reach 605 points, and the broader EGX100 index lost 0.86 percent to register 1,056 points.
Ehab el-Saeed, head of technical analysis at Osool ESB Securities, attributed the EGX’s decline to intensive profit taking, mainly from telecom sector stocks like Global Telecom and OTMT, in addition to some real estate stocks, most notably Sodic, Amer Group and Palm Hills.
In a phone interview, Saeed said the EGX will keep moving sideways with no incentives and the significant immobility of market bellwether CIB. He also said he expected the EGX30 to offset its loss and rebound in the Sunday session to test a resistance level of 8,400 points.
However, the analyst reiterated his positive medium- and long-term outlook for EGX performance and said he expects a big leap in the wake of coming presidential elections, which will take place from May 26-27.
Also on Thursday, foreign net sell-offs registered 208 million EGP, while Egyptian and Arab net purchases reached 145.1 million EGP and 62.9 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.
The 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.