CAIRO: The Egyptian Exchange indexes (EGX) ended Monday trading in the red, failing to maintain its morning gains amid selling pressures on the first day of the presidential elections.
EGX30 sagged 0.3 percent to end at 8,736, failing to maintain morning surge at 8,812 points due to profit taking.
Small and mid-cap EGX70 dropped 0.31 percent to hit 613 points and the broader EGX100 was also down 0.64 percent at 1,073 points.
Market capitalization lost a round 1 billion EGP ($139.9 million) to hit 494.6 billion EGP compared to 495.6 billion EGP Sunday. Turnover reached 1.5 billion EGP.
Capital market experts and technical analysts said the benchmark index EGX30 is expected to continue the rally and penetrate the 9,000-point barrier if it manages to stay above the 8,600-point level this week, riding a bullish wave over the presidential election.
Hossam Helmy, a Pioneers Holding technical analysis advisor, said the EGX30 attributed the decline to the expected profit taking following the market surge last week as the benchmark is approaching a new resistance level at 9,000 points.
“EGX30, however, will rebound and resume its upward movement towards the highest level since August 2008 at the beginning of the global financial crisis,” Helmy told The Cairo Post.
Managing Director of Pioneers Holding Mohsin Adel said the accomplishment of any step towards achieving democracy helps create a state of stability in the country, and reinstates investors’ confidence in Egypt’s economic outlook and the stock market in particular.
“Having a new elected president after more than three years of political upheaval, EGX will witness a big leap in the short-term, backed by institutions’ medium-term purchases in the coming period,” Adel told The Cairo Post in a phone interview.
Ihab Saeed, head of technical analysis at Osool ESB Securities told The Cairo Post that “EGX30 is likely to add 50 points to 60 points Tuesday if the election goes smoothly without significant violence or unrest.”
The analyst also expected a boom on Wednesday, whereas profit taking could hinder EGX30 uptrend while approaching 9,000 points to 9,200 points in the short-term.
EGX showed a mixed performance Sunday, with the benchmark index EGX30 trading sideways, as investors anticipated the presidential election slated for Monday and Tuesday. Backed by the selective purchase of some blue chips, EGX30 added 0.4 percent to reach 8,762 points.