Mid-session: Market slips on local institution sell-offs
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) indexes lost ground during Monday’s early and mi-session trading, hurt by selective profit taking and selling pressures on some blue chips led by local institutions.

The benchmark index EGX30 dropped 1.1 percent to reach 8,559 points, down from Sunday’s close at 8,654 points. The small and mid-cap index EGX70 fell 0.88 percent to hit 602 points and the broader index EGX100 lost 0.85 percent to reach 1,058 points.

Market capitalization lost roughly 2.7 billion EGP ($377.4 million), registering 490.3 billion EGP, down from 493 billion EGP Sunday. Turnover reached 620 million EGP.

Ehab Saeed, head of technical analysis at Osool Securities Brokerage attributed the decline to selective profit taking and selling pressures on leading stocks, most notably Global Telecom and Talaat Moustafa, Amer Group, Hermes, Citadel, Pioneers and OTMT.

“From a technical perspective, the benchmark index reflects negative indicators on the medium-term, making it hard to penetrate its previous peak at 8,800 points in the short-term,” Saeed told The Cairo Post.

The analyst added that EGX30 is likely to off-set part of its loss before resuming its downward movement, or it could perform sideways with a downward tendency.

“The benchmark failure to penetrate the 8,800 barrier could drive it below the 8,500-8,600 point mark where selling pressure could soar and plunge the index between 8,000-8,100 points,” Saeed said.

On Sunday, the market ended in the red and market capitalization shed around 2.2 billion EGP, hit by selective profit taking.

The EGX30 fell 1.05 percent to reach 8,654 points, and market capitalization lost roughly 2.9 billion EGP ($405.2 million.)

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