CAIRO: Egyptian Exchange (EGX) indexes collectively slipped during Wednesday’s mid-session, amid selling pressures by local foundations and Arabs following the market surge which lasted seven sessions in a row.
The benchmark index EGX30 dropped 0.48 percent to reach 8,616 points, down from 8,658 points Tuesday, failing to maintain its highest level since August 2008 and the beginning of the Global Financial Crisis.
The small and mid-cap index fell 0.48 percent to hit 621 points and the broader EGX100 was also down 0.49 percent at 1,083 points. Market capitalization lost more than 1.7 billion EGP ($238.8 million) to hit 493.8 billion EGP compared to 295.5 billion EGP Tuesday. Turnover reached 856.4 million EGP.
Ihab Saeed, head of technical analysis at Osool ESB Securities, attributed the decline to the expected profit taking on some leading shares, topped by the market bellwether CIB, after seven successive sessions in the green, while the benchmark index re-tests a support level at 8,600 points.
The analyst told The Cairo Post that the market would confirm the new trend if the benchmark ends this session above 8,600 points to target a new barrier at 9,000 points.
Also on Wednesday, Arab net purchases reached 22 million EGP, while Egyptian and foreign net sell-offs registered 16.6 million EGP and 6 million EGP respectively.
EGX indexes rallied Tuesday, as the benchmark index EGX30 reached the highest level since August 2008, amid upbeat investor sentiment ahead of presidential elections and expat-voting results.
EGX30 rose 0.88 percent to penetrate 8,600 points, reaching 8,658 points, boosted by Egyptian purchases and the positive performance of the leading shares, topped by the market bellwether CIB.