Mid-session: Benchmark fell 0.7% over profit taking
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) indexes dropped during Tuesday’s mid-session hurt by profit taking after the market rally over the inauguration of President Abdel Fatah al-Sisi.

The benchmark index EGX30 dropped 0.72 percent to reach 8,532 points, down from Monday’s close at 8, 593 points. The small and mid-cap index EGX70 fell 0.55 percent to hit 600 points and the broader index EGX100 lost 0.23 percent to reach 1,053 points.

Market capitalization maintained Monday’s level at 489.8 billion EGP Monday, while turnover amounted to 200 million EGP.

Walid Helal, technical analyst at El Mokattam Securities Brokerage and member of The Egyptian Society of Technical Analysts (ESTA) attributed the decline to the previously expected profit taking following the market rally over Sisi’s landslide victory in the presidential election and his inauguration.

“The benchmark, however, will resume the rally targeting 9,000 points in the short-term,” Helal told The Cairo Post.

Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim EL-Nemr said the benchmark managed to breach above the previous resistance level of 8,250 points amid high volume trading.

“This could lead the EGX30 to advance towards the resistance level of 8,825 once again,” Nemr told The Cairo Post, advising investors to hold their stock.

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