CAIRO: The Egyptian Exchange (EGX) showed a mixed performance during Wednesday’s early and mid-session trading, and the benchmark index EGX30 managed to maintain its new 6-year high above the 9,000-point barrier.
Getting support from the positive performance of some blue chips, namely EFG-Hermes, Citadel and Ezz Steel , the EGX30 edged up 0.13 percent to hit 9,022 points, exceeding Tuesday’s 6-year high of 9,010 points.
In turn, the small and mid-cap index EGX70 fell 0.3 percent to reach 626 points, compared to 628 points Tuesday, and the broader index EGX100 also dropped by 0.04 percent to reach 1,114 points.
Market capitalization lost around 400 million EGP (U.S. $55.9 million), registering 505.8 billion EGP.
“The benchmark maintained its level above 9,000 points and it is likely to test 9,200 points, but most technical indicators show signs of short-term sell-offs,” chief technical analyst at Helwan Securities and board member of Helwan Holding Ahmed Abdel Rahman told The Cairo Post.
Abdel Rahman said he expects profit taking from most stocks during the rest of the session, noting that a downward correction movement could boost the market uptrend as long as the benchmark remains above 8,820 points.
In turn, El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post that he expects the benchmark to end in the green but with limited gains.
“Today’s session witnessed a slight decline due to profit taking following the market rally this week, but the benchmark’s performance remains positive and the market indicators show a tendency to resume the upward movement targeting 9,200 points,” Helal said.
He added that the coming sessions would witness slight profit taking, giving a chance for purchasing power to enter the market.
The EGX witnessed a good rally in the beginning of the session and the benchmark penetrated the first upward target at 9,000 points and closed above it with a slight profit taking, Osama Naguib, head of technical analysis at Arab Finance, said, commenting on Tuesday’s session.