CAIRO: The Egyptian Exchange (EGX) indexes plunged Tuesday amid ongoing selling pressures namely by local institutions for three sessions in a row.
The benchmark index EGX30 dropped 1.47 percent to end under the 8,400 barrier at 8,396 points, lower than Monday’s close at 8, 522 points. The small and mid-cap index EGX70 fell 1.29 percent to hit 591 points and the broader index EGX100 lost 1.23 percent to reach 1,041 points.
Market capitalization lost roughly 5.2 billion EGP, registering 482.2billion EGP, down from 487.4 billion EGP yesterday. Turnover amounted to 1.1 billion EGP.
“EGX 30 reached its support level of 8,500 points; a decline from that level may send the benchmark lower towards 8,150 to 8,250,” head of Technical Analysis Desk at Naeem Brokerage Ibrahim EL-Nemr told The Cairo Post.
Ehab Saeed, head of technical analysis at Osool Securities Brokerage attributed the decline to selective profit taking and selling pressures on leading stocks by local and Arab traders.
“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 said he expects that the EGX30 will offset part of its loss before resuming its short-term downward movement, or it could perform sideways with a downward tendency.