Mid-session: EGX loses 1.6B EGP hurt by profit taking
Egyptian Exchange - AFP/Marco Longari

CAIRO: The Egyptian Exchange (EGX) showed a mixed performance during Sunday’s early and mid-session trading and market capitalization shed around 1.6 billion EGP ($223.7 million) harmed by profit taking after the market hit a six-year high last week.

The benchmark index EGX30 fell 0.56 to hit 9,102 points, compared to 9,152 points Thursday. In turn, the small and mid-cap index EGX70 rose 0.12 percent, registering 633 points compared to 632 points while the broader index EGX100 lost 0.05 percent to reach 1,124 points.

Market capitalization dropped to 508.4 billion EGP, down from 510 billion EGP last session.

“The benchmark index resumed its rally toward its target at 9,200 points during last week and it is normal to witness a correction or minimal profit taking this week,” Mohamed Gaballah said, who is the head of trading at Tawfik Securities Brokerage and a capital market expert.

Gaballah told The Cairo Post the market bellwether CIB stock reached its target at 44 EGP last week and will face profit taking that will drive it downward to 41.70 EGP, which worth 137 points on the benchmark index.

“EGX30 will likely slide toward 9,050 points due to CIB’s decline. Accordingly, there will be a kind of separation between the main index and the stocks which remained above their support levels. That is why there is no need for any panic or concerns,” Gaballah said.

EGX surged last week and the benchmark index jumped 3.7 percent, reaching the highest level since August 2008 amid investors’ sentiment about the launch of two mega projects in the Suez Canal zone by President Abdel Fatah al-Sisi.

The market was also supported by ending some precautionary measures that were adopted after the January 25 Revolution in 2011 as trading rates returned to normal levels.  According to the system, EGX returned Thursday to the price discovery session and unified price limits for the main market at 10 percent and NILEX at 5 percent.

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