CAIRO: The Egyptian Exchange (EGX) ended Sunday’s session in the negative after paring morning gains due to selling pressures from local institutions and foreign retail traders.
The benchmark index EGX30 fell 0.27 percent to hit 8,802 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 0.74 percent to reach 623 points, compared to 628 points Thursday, and the broader index EGX100 also dropped 0.46 percent to reach 1,103 points.
Market capitalization lost around 2.6 billion EGP ($293.6 million), registering 498.4 billion EGP and down from 501 billion EGP Thursday. Total trade value amounted to 822.3 million EGP.
“As the benchmark index rose in the last session—breaching the previous key resistance area at 8,800 points—it went into an overbought area to drive selling power,” said Osama Naguib, head of technical analysis at Arab Finance, in comments to The Cairo Post Sunday.
“The index witnessed a slight decline today and lost 24 points, and it’s more likely that it will continue the slight slide to the area of 8,650 points as we expect an end to the mentioned correction,” he continued.
However, the analyst reiterated Arab Finance’s positive outlook as the index remained above the 8,450-point area—which is considered a short term stop loss—and he said a target of 9,000 points to 9,200 points will be intact.
“The benchmark will separate from the key sectors as the index is facing excessive buying sprees and the market bellwether CIB has dominated 26 percent of the index since recent changes conducted on the listed corporations,” Mohamed Gaballah, the head of trading at Tawfik Securities Brokerage and a capital market expert, told The Cairo Post.
Gaballah added his prediction comes in light of the index’s 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 the EGX to trade sideways between 8,650 points and 9,100 points this week.