CAIRO: The Egyptian Exchange indexes slightly declined this week, due to profit taking and the negative performance of some leading shares.
The benchmark index EGX30 dropped 0.55 percent to end at 8,211 points. The index managed to approach a resistance level at 8,400 points early this week, but it failed to penetrate this level, due to profit taking on some blue chips, topped by Global Telecom, followed by Amer Group, Plam Hills and EFG Hermes.
Further, the small and mid-cap index EGX70 declined 0.6 percent to close at 605 points, and the broader index EGX100 also fell 0.72 percent to end the week at 1,057 points.
Market capitalization lost roughly 262 million EGP, registering 477.7 billion EGP.
“Anxiety still controls investors, who are anticipating the economic programs of Egypt’s presidential elections (scheduled for May 26 and 27),” Head of technical analysis at Osool ESB for Securities Brokerage Ehab el-Saeed told The Cairo Post Friday.
“Trading volume and value, however, have relatively improved during the course of the week, ranging between 590 million EGP and 1 billion EGP, with a daily average valued at 795 million EGP, up from 765 million EGP during the week before,” he continued.
Saeed attributed this improvement to EGX’s positive performance early this week, where EGX30 approached 8,400 points, but sideways movement from market bellwether CIB prevented the index from penetrating this level.
For next week, Saeed said he expects EXG30 will focus on a support level at (8,100-8,150) points. “The benchmark index will rebound to test a resistance of 8,400 points again.”
Moreover, EGX70 is likely to find support at 595-600 points to target a resistance level at 615-617 points, added Saeed.
During last week’s trading, EGX indexes witnessed a collective decline, losing 4.1 billion EGP of capitalization due to intensive selling by Arab and foreign investors, while Egyptian investors mostly purchased.
EGX30 edged down by 0.47 percent to score 8,256 points, the 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.