EGX plunges due to local selloffs
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) indexes fell collectively Monday due to selective profit taking and selling pressures on some blue chips led by local institutions.

The benchmark index EGX30 dropped 1.53 percent to reach 8,522 points, lower than Sunday’s close at 8,654 points. The small and mid-cap index EGX70 fell 1.34 percent to hit 599 points and the broader index EGX100 lost 1.2 percent to reach 1,054 points.

Market capitalization lost roughly 5.6 billion EGP ($782.9 million), registering 487.4 billion EGP, down from 493 billion EGP Sunday. Turnover reached 2 billion 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, Talaat Moustafa, Amer Group, Hermes, Citadel, Pioneers and OTMT.

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

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

“The benchmark’s failure to penetrate the 8,800 point 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.

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