CAIRO: The Egyptian Exchange (EGX) lost ground Thursday and market capitalization shed more than 2 billion EGP ($279.69 million), hurt by profit taking.
Benchmark index EGX 30 fell by 0.68 percent to hit 9,373 points, compared to 9, 437 points Wednesday. The small and mid-cap index EGX70 slipped 1.03 percent, registering 647 points, down from 659 points, and the broader index EGX100 also lost 1.47 percent to reach 1,160 points.
Market capitalization dropped to 519.7 billion EGP, down from 521.7 billion EGP last session.
“EGX’s slide was very normal due to the aggressive selling pressure that started in the 2nd half of yesterday’s session,” portfolio and asset manager at Cairo Funds Management Amr el-Feky told The Cairo Post.
The market moved in sideways trading for the last 4 sessions, where the area between (9,280-9,340) points acted as a short-term support level, said Feky.
He reiterated that the market needs a break as investors should shift from their overbought stocks to those with potential to violate higher levels.
“A lot of equities are still underperforming in the main index, while only four or five major picks outperformed it, which means that investors should hold and watch closely the right stocks which will lead the market toward the target of 10,500 points by the year’s end,” Feky detailed.
He further noted that only some stocks from the real estate sector plus the two major picks from the financial sector like EFG-Hermes and CIB led the rise in the past few weeks.
“On the other hand, we can note that a lot of picks still have the opportunity, like Amer group, Citadel, OTMT, Palm Hills, in addition to the majority of small caps which give us an indication for the decline of retail movement which is considered unhealthy for the market,” he added.
Feky advised retail investors to take action and lead the market to reach higher levels.
Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr said that EGX 30 retreated from 9,500 points and failed to hold above 9,475.
“This may lead the main index to 9,290 points, however, a rebound from the support level of 9,290 may push the market again toward 9,500 and then 9,700 points,” Nemr told The Cairo Post.