CAIRO: The Egyptian Exchange indexes (EGX) dropped sharply during Wednesday’s mid-session amid ongoing selling pressures on the third day of the presidential election.
EGX administration suspended its session Tuesday after the Cabinet announced an official vacation amid efforts to allow citizens to cast their votes.
The benchmark index EGX30 decreased 2.09 percent to hit 8,553 points down from 8,736 points Monday. Small and mid-cap EGX70 dropped 1.1 percent to hit 606 points and the broader EGX100 was also down 1.25 percent at 1,059 points.
Market capitalization lost a round of 4.5 billion EGP to reach 489.9 billion EGP, compared to 494.6 billion EGP compared Monday. Turnover reached 217 million EGP.
Capital market experts and technical analysts said EGX30 is expected to re-test support level at 8,500 points to 8,600 points. However, the index is expected to rebound and penetrate the 9,000-point barrier if it manages to stay above the 8,600-point level this week.
Technical analyst Walid Helal attributed the decline to selling pressures that started Monday despite expectations that the benchmark could continue its rally towards the highest level since 2008, boosted by investor upbeat sentiment over the election.
“EGX30 is expected to end in the red zone but it will trim its losses after the mid-session,” Helal told The Cairo Post.
He added that EGX30 will rebound and resume its rally Thursday, adding that “the voting process is just a step towards announcing Egypt’s new elected president, a step that EGX is greatly expected to cope with positively.”
Head of Technical Analysis Desk at Naeem Brokerage Ibrahim EL-Nemr said the market could spare its loss after the mid-session but he ruled out the possibility of ending in the green.
“The benchmark would rebound on Thursday,” Nemr told The Cairo Post.