CAIRO: Egyptian Exchange’s (EGX) indexes ended on a collective decline Sunday due to profit taking on the leading stock, while the market witnessed a remarkable rally on the first day of trading the Arabian Cement stock, which jumped to 14.8 percent in the first minutes.
The benchmark index EGX30 dropped 0.25 percent to hit 8,532 points down from 8, 545 points Thursday. However, the index managed to remain above the 8,400 point resistance level for the third session in a row.
The small and mid-cap index dropped 0.5 percent to reach 617 points and the broader EGX100 was down 0.34 percent to close at 1.079 points.
Market capitalization lost roughly 200 million EGP ($28.1 million), reaching 492.1 billion EGP compared to 492.3 billion EGP Thursday. Total turnover reached 1.08 billion EGP.
“The benchmark index is moving sideways while approaching a new resistance level at 8,600 to 8,650 points after penetrating the former 8,400 points resistance level,” Ihab Saeed, head of technical analysis at Osool ESB Securities, said.
In a phone interview, Saeed attributed EGX30’s limited decline selling pressure on some leading stocks headed by Global Telecom, in addition to investors focusing on the Arabian Cement stock, affecting the performance of other leading shares.
Spanish Ambassador in Cairo Fidel Sendagorta del Campillo, EGX Chairperson Mohammed Omran, and a delegation from Arabian Cement headed by its Chairperson Generoso Bertolin inaugurated the first day of trading of Arabian Cement company’s stocks with the company’s chair ringing the bell of the trading session Sunday.
Arabian Cement’s IPO saw 18.5 times oversubscription since the total amount of purchase orders reached 460.5 million shares while the volume of shares offered for sale was approximately 24.9 million shares. Accordingly, the allocation rate reached 5.4 percent.
Saeed expects minor profit taking transactions on Tuesday session as well. However, he predicted the benchmark could rebound Wednesday to penetrate 8,600 points ahead of the presidential elections due on May 26 and 27.
Also on Sunday, Egyptian and Arab net sell-offs registered 702,218 EGP and 21.6 million EGP respectively, while foreign net purchases reached 22.3 million EGP.
On Thursday, EGX indexes boomed amid high liquidity and investor optimism over strong corporate financial results, boosting market capitalization with 6.1 billion EGP ($857.64 million.)
EGX30 edged higher 1.02 percent to hit 8,545 points, up from 8,466 points Wednesday. EGX70 also rose 0.64 percent to reach 620.8 points and the broader EGX100 grew 0.62 percent to register 1,082 points.