CAIRO: The Egyptian Exchange (EGX) indexes slipped during Sunday’s early and mid-session trading and market capitalization shed around 2.2 billion EGP, hurt by selective profit taking of some blue chips.
The benchmark index EGX30 dropped 1.22 percent to reach 8,639 points, down from Thursday’s close at 8, 746 points. The small and mid-cap index EGX70 fell 0.42 percent to hit 605 points and the broader index EGX100 lost 0.39 percent to reach 1,066 points.
Market capitalization lost roughly 2.2 billion EGP, registering 495.9 billion EGP, up from 493.7 billion EGP Tuesday. Turnover soared to 1.7 billion EGP, compared to a total of 780 million EGP yesterday.
The market slipped after the benchmark failed to breach above its previous peak at 8,800 points, technical analyst at El-Mokattam Securities Brokerage and member of the Egyptian Society of Technical Analysts (ESTA) Walid Helal said.
“EGX30 is likely to continue its slip and could re-test and approach the support of 8,620 during the rest of the session,” Helal told The Cairo Post. Some purchases will then appear and the market could rebound on Monday once the new Cabinet is announced.
“EGX 30 reached its resistance range of 8,000-8,025 points; a decline from that level may lead it towards 8,500,” head of Technical Analysis Desk at Naeem Brokerage Ibrahim EL-Nemr said.
He said a breach below 8,500 may send it lower towards 8,150-8,250 points and advised investors to reduce their positions.