CAIRO: The Egyptian Exchange (EGX) indexes showed mixed performance during Monday’s early and mid-session trading due to selective profit taking.
The benchmark index EGX30 fell slightly 0.08 percent to hit 8,315 points, up from 8,321 points Sunday. Meanwhile, the small and mid-cap index EGX70 added 0.02 percent to hit 606 points and the broader index EGX 100 also rose 0.06 percent to reach 1,060 points.
Market capitalization lost around 100 million EGP ($13.9 million), registering 483.7 billion EGP down from 483.8 billion EGP Sunday. Total trade value amounted to 307.6 million EGP.
Walid Helal, a technical analyst at El-Mokattam Securities Brokerage and a member of the Egyptian Society of Technical Analysts (ESTA), attributed the slight decline of the benchmark to the repeal of Beltone-Hermes deal.
An alliance between Beltone Financial Holding and business tycoon Naguib Sawiris refused Monday to accept an offered stake of 9.5 percent in EFG Hermes, as they sought a 20 percent stake.
“Beltone said the offered stake will not allow the consortium an acceptable representation in Hermes board,” according to Reuters.
Helal expects the market could end in the green amid positive performance of most stocks ahead of a potential leap in conjunction with the economic reform procedures adopted by the government.
The Cabinet decided Saturday to raise fuel prices in light of reform measures aimed at restructuring subsidies that eat up 20 percent of the State’s budget. Egypt has recently imposed a 10 percent capital gains tax on stock market profits and dividends, in addition to a 5 percent exceptional tax on those gaining more than 1 million EGP annually.
“EGX will resume its rally in the upcoming days, ahead of holding the ‘Donor Coference’ to get financial aid to support Egypt’s limping economy,” Helal added.
Ibrahim El-Nemr, head of the Technical Analysis Desk at Naeem Brokerage told The Cairo Post that the benchmark breached above the “previous” resistance level 8,190 points, pointing to the bulls are gathering more power.
“This power may send EGX30 higher towards 5,500 points as a next target,” Nemr said, advising investors to buy near supports.