CAIRO: The Egyptian Exchange (EGX) indexes ended Tuesday trading on a slight decline hurt by profit taking after the market rally over the inauguration of President Abdel Fatah al-Sisi for four sessions in a row.
The benchmark index EGX30 dropped 0.31 percent to reach 8,567 points, down from Monday’s close at 8,593 points. The small and mid-cap index EGX70 fell 0.3 percent to hit 602 points and the broader index EGX100 lost 0.06 percent to reach 1,056 points.
Market capitalization lost around 1.1 billion EGP ($153.8 million), recording 488.7 billion EGP, down from 489.8 billion EGP Monday. Turnover dropped to 780 million EGP, lower than the 2 billion EGP from yesterday.
Ehab Saeed, head of technical analysis at Osool ESB Brokerage, attributed the decline to minor profit taking amid sideways performance due to speculations about the government’s intention to mull or suspend a capital gains tax on stock market profits and dividends.
“The benchmark is likely to see sideways trade movement on Wednesday and early transactions will lose around 30 points to 40 points,” Ehab said, adding that the EGX30 could resume the rally and retest its previous peak at 8,800 points upon crossing the 8,550-8,600 point barrier.
Walid Helal, technical analyst at El Mokattam Securities Brokerage and a member of The Egyptian Society of Technical Analysts (ESTA) attributed the decline to previously expected profit taking following the market rally over Sisi’s landslide victory in the presidential election and his inauguration.
“The benchmark could move sideways during Wednesday trading, however, the index will resume the rally targeting 9,000 points in the short-term,” Helal told The Cairo Post.