CAIRO: The Egyptian Exchange (EGX) indexes ended on a collective decline Wednesday, amid selling pressure by local foundations and foreign individuals following a market surge that lasted seven sessions in a row.
The benchmark index EGX30 dropped 0.36 percent to reach 8,626 points, down from 8,658 points Tuesday, and failed to maintain its highest level since August 2008 at the beginning of the global financial crisis.
The small and mid-cap index EGX70 fell 0.52 percent to hit 621 points and the broader EGX100 was also down 0.48 percent at 1,083 points. Market capitalization lost roughly 1 billion EGP ($140.3 million) to hit 494.5 billion EGP compared to 295.5 billion EGP Tuesday. Turnover reached 1.3 billion EGP.
Ihab Saeed, head of technical analysis at Osool ESB Securities, attributed the decline to expected profit taking on some leading shares, topped by market bellwether CIB, after seven successive sessions in the green.
The analyst told The Cairo Post that the market confirmed the new trend as the EGX30 managed to shoot above 8,600 points for two sessions in a row. He said the index will target a new barrier at 9,000 points ahead of the presidential election from May 26-27.
Also on Wednesday, Arab net purchases reached 31.9 million EGP, while Egyptian and foreign net sell-offs registered 18 million EGP and 13.8 million EGP respectively.
EGX indexes rallied Tuesday, as the benchmark index EGX30 reached its highest level since August 2008, amid upbeat investor sentiment ahead of presidential elections and expat voting results.
The EGX30 rose 0.88 percent to penetrate 8,600 points, reaching 8,658 points, boosted by Egyptian purchases and the positive performance of leading shares, headed by market bellwether CIB.