CAIRO: The Egyptian Exchange (EGX) lost ground Sunday, harmed by selling pressures from local and Arab retail investors as well as foreign institutions.
The benchmark index EGX30 lost 0.66 percent to hit 8,401 points, down from 8,457 points Thursday. The small and mid-cap index EGX70 dropped 0.36 percent to hit 604 points and the broader index EGX 100 also fell 0.38 percent to reach 1,060 points.
Market capitalization shed around 1.8 billion EGP ($251.6 million), registering 485.7 billion EGP and down from 487.5 billion EGP Sunday. Total trade value amounted to 658 million EGP.
Head of the Technical Analysis Desk at Naeem Brokerage, Ibrahim El-Nemr, told The Cairo Post the benchmark reached near the resistance level of 8,500 points.
“A breach above 8,500 may send it higher towards 8,800 points,” he said.
Meanwhile, Ehab Saeed, head of technical analysis at Osool Securities Brokerage, said he expected the EGX30 will trade sideways between its new support level ranging between 8,250 points to 8,300 points, and a resistance level near 8,550 points to 8,600 points amid the benchmark’s medium-term sideways performance.
Saeed also expected the EGX70 to trade near the new support level of 600 points, adding that staying above such a level will drive the index higher towards 617 to 620 points.
Last week, the EGX indexes went up collectively and market capitalization gained around 5.6 billion EGP amid upbeat investor sentiment over Fitch Ratings’ positive remarks on Egypt’s economy and reform measures.
Fitch stated that “recently announced oil price hikes are an important step to reduce subsidies, which will contribute to Egypt’s substantial fiscal deficit—a key rating weakness.”
The benchmark index EGX30 edged up 2.41 percent to end the week at 8,458 points, up from 8,258 points during the previous week.