CAIRO: The Egyptian Exchange (EGX) declined collectively during Sunday’s early and mid-session trading harmed by selective profit earning, namely from blue chips.
Hit by selling pressures, the benchmark index EGX30 fell 0.18 percent to hit 8,810 points, down from Thursday’s 8,826 points, which was the highest daily close since August, 2008.
The small and mid-cap index EGX70 shed 0.89 percent to reach 622 points, compared to 628 points Thursday and the broader index EGX100 also dropped 0.56 percent to reach 1,102 points.
Market capitalization lost around 800 million EGP ($111.8 million,) registering 500.2 billion EGP and down from 501 billion EGP Thursday. Total trade value amounted to 300.7 million EGP.
Ahmed el-Rawy, head of trading at Arab Finance attributed the decline to profit taking from the market bellwether CIB stock which rallied recently, in addition to Amer Group.
Rawy told The Cairo Post that the market would rebound from this slight slide and resume its positive performance targeting 9,200 points in the coming period.
“The benchmark will separate from the key sectors as the index is facing excessive buying spree and the market bellwether CIB stock has dominated 26 percent of the gauge after the recent change conducted on the listed corporations,” said Mohamed Gaballah, head of trading at Tawfik Securities Brokerage and a capital market expert.
Gaballah told The Cairo Post that his prediction comes in light of the index positive performance last week as it penetrated the strong resistance level of 8,822 percent amid strong liquidity.
“CIB is meeting a resistance level at 44 EGP and it is normal to witness some profit taking at this level,” added Gaballah, expecting EGX to trade sideways between 8,650 point and 9,100 point this week.
“The benchmark reached the major resistance level of 8,825 points; a confirmed breach above this level may send it higher towards 9,300 points as a first target and then 9,700 points as a second target,” Ibrahim El-Nemr, the head of the Technical Analysis Desk at Naeem Brokerage, told The Cairo Post.
Nemr advised investors to buy as long as the indicators are below the stop-loss limit of 8,470 points.