CAIRO: The Egyptian Exchange (EGX) indexes lost ground this week and market capitalization shed more than 15 billion EGP ($2.1 billion) following the swearing-in of the new Cabinet.
The benchmark index EGX30 plunged 4.64 percent to end the week at 8,340 points, down from 8,746 points last week. The small and mid-cap index EGX70 also fell 3.1 percent to close the week at 589 points, compared with 608 points.
The broader index EGX100 lost 3.1 percent to end at 1,037 points, compared to 1,070 points last week. Market capitalization lost nearly 15.2 billion EGP to hit 480 billion EGP.
“EGX30 failed to keep its uptrend and slipped again toward 8,340 points, hurt by some negative technical signs on the momentum indicators over both daily and weekly terms for the first time since June 30 last year,” Ehab Saeed, head of technical analysis at Osool Securities Brokerage told The Cairo Post.
“This weak indicators triggered strong selling pressures on most blue chips headed by the largest weighting on the gauge CIB, followed by Global Telecom, Talaat Moustafa, EFG Hermes and Ezz Steel,” the analyst said in a phone interview Friday.
Traded value continued to decline this week to range between 645 million EGP and 915 million EGP, with daily average valued at 780 million EGP, lower than the average of 906 million EGP a week ago, added Saeed.
The analyst said he expects that the “EGX30 will focus on a support level at 8,400 points and could rebound towards 8,550 points to 8,600 points if it managed to stay above this level before facing new selling pressures, certainly after its medium-term uptrend was reversed to trade sideways.”
Meanwhile, the analyst reiterated his positive outlook of the benchmark long-term uptrend.
Last week, the market rallied and market capitalization gained around 9.3 billion EGP amid upbeat investor sentiment following the inauguration of President Abdel Fatah al-Sisi.
The market was also backed by MSCI’s decision not to downgrade EGX from its emerging markets index. EGX30 hiked 2.91 percent to close the week above the 8,600 barrier at 8,746 points, up from 8,498 points the week prior.