CAIRO: The Egyptian Exchange (EGX) indexes resumed its sideways trading with a downward tendency amid weak liquidity ahead of the end of the current fiscal year Monday, which coincided with the Cabinet’s plans to cut energy subsidies.
The benchmark index EGX30 fell 0.37 percent to hit 8,064 points, down from Thursday’s close at 8,093 points. The small and mid-cap index EGX70 lost 0.01 percent to hit 583 points and the broader index EGX100 also decreased 0.09 percent to reach 1,022 points.
Market capitalization lost around 600 million EGP, registering 473.1 billion EGP, compared to 473.7 billion EGP Thursday. Turnover amounted to 162,718 million EGP.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA0), attributed the decline to institutions’ selling pressures to finalize the annual financial results with real profits and big liquidity.
Helal said the market was also harmed by investors’ concerns over the Cabinet’s remarks about removing energy subsidies, which could push price up and affect stability dramatically.
Indexes lost ground last week and market capitalization shed around 7 billion EGP following President Abdel Fatah al-Sisi remarks about adopting some austerity procedures to fill the budget deficit.
The market was also harmed by the growing regional concerns over the Iraqi crisis. The benchmark EGX30 plunged 2.96 percent to end the week at 8,093 points.