CAIRO: The Egyptian Exchange (EGX) lost ground during Monday’s early and mid-session trading, hurt by selling pressures mostly on real estate stocks.
The benchmark index EGX 30 fell by 0.76 percent to hit 9,423 points, compared to 9,493 points Sunday. The small and mid-cap index EGX70 lost 0.45 percent, registering 657 points, down from 660 points last session and the broader index EGX100 also declined 0.87 percent to reach 1,168 points.
Market capitalization shed around 2.6 billion EGP ($363.6million), reaching 521.2 billion EGP, and down from 523.8 billion EGP last session.
“The benchmark index was hammered by the selling powers amid a normal corrective wave for the uptrend,” head of technical analysis at Capital Securities Brokerage Noha Raheel told The Cairo Post.
Raheeh attributed the decline to the negative performance of most the real estate stocks, which soared 100 percent during the last four months, approaching price levels never hit since 2008.
Meanwhile, the market bellwether CIB maintained its level until 12:00 p.m. then slipped from 46 EGP and approached its short-term resistance level at 45 EGP, Raheel said: “There are no worries as long as CIB remains above 43.7 EGP.”
Technical analyst at African Economic Group Mona Mostafa expected indexes and the stocks to move in sideways Monday amid the mixed performance of stocks.
“The market is likely to witness minimal profit taking in Monday’s early trading amid sideways move with some rebounds in an attempt to penetrate the resistance levels,” Mostafa told The Cairo Post.
The benchmark index has resistance at 9,500 then 9,720 points and support at 9,395 then 9,310 points. EGX70 has resistance at 667 then 676 and support at 658 then 632, according to the analyst.
She advised investors to monitor their stocks over the next few days and move to defensive shares.