CAIRO: The Egyptian Exchange (EGX) indexes ended on a mixed note Sunday amid sideways trading with a downward tendency and weak liquidity ahead of the end of the current fiscal year, which coincided with the Cabinet’s plans to cut energy subsidies.
The benchmark index EGX30 fell 0.28 percent to hit 8,070 points, down from Thursday’s close at 8,093 points. In turn, the small and mid-cap index EGX70 added 0.34 percent to hit 585 points and the broader index EGX100 also rose 0.2 percent to reach 1,025 points.
Market capitalization lost around 300 million EGP ($41.9 million), registering 473.4 billion EGP, compared to 473.7 billion EGP Thursday. Turnover amounted to 396.6 million EGP.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), said institutions’ selling pressures to finalize the annual financial results with real profits and big liquidity stood behind the weak performance and low liquidity.
Helal told The Cairo Post the market was also harmed by investor concerns over the Cabinet’s remarks about removing energy subsidies, which could push prices up and affect stability dramatically.
Most stocks plunged, said the analyst, ruling out further decline in the coming period as the government seeks to lure new investments and establish new national megaprojects, in which the stock market could be a key finance tool.
Indexes lost ground last week and market capitalization shed around 7 billion EGP following President Abdel Fatah al-Sisi’s remarks about adopting some austerity measures to fill the budget deficit.
The market was also harmed by growing regional concerns over the Iraq crisis. The benchmark EGX30 plunged 2.96 percent to end the week at 8,093 points.