CAIRO: The Egyptian Exchange (EGX) indexes went up this week despite a significant decline in trading volume and value driven from heavy selling pressures in early sessions.
The benchmark index EGX30 gained 0.66 percent to close the week at 9,435 points, down from 9,373 points during last week.
The small and mid-cap index EGX70 rose 0.98 percent to end the week at 658.7 points, compared with 652 points. The broader index EGX100 also gained 0.29 percent to close at 1,168 points, compared to 1,165 points a week earlier.
Market capitalization gained more than 4.4 billion EGP ($615.3 million), amounting to 524.2 billion EGP.
“EGX30 failed for a third consecutive time to penetrate its previous resistance level near 9,500 points, despite breaching above this zone during Sunday’s session, recoding its all-time high at 9,509 points,” Osool Securities Brokerage head of technical analysis Ehab Saeed told The Cairo Post.
The benchmark index failed to maintain its level above 9,500 points and tended to trade sideways with most session this week, said the analyst, citing profit taking from some leading stocks, topped by the market bellwether CIB, EFG-Hermes and Talaat Moustafa.
“The heavyweight CIB resumed its slide toward its new support level near 45 EGP before rebounding to close at 46.98 EGP Thursday,” Saeed added.
Meanwhile, the market witnessed a remarkable improvement in the telecom sector performance headed by Global Telecom which approached its highest price since June, said the analyst. In turn, the real estate stocks led by Heliopolis and Sodic dropped in a significant manner hurt by profit taking.
Saeed further noted that the EGX70 tended to move in sideways with a downward performance below its main resistance level near 666 points and above its new support at 647 points in conjunction with sideways movements of most small and medium caps.
“Total trade value and volume dramatically declined this week ranging between 600 million EGP to 740 million EGP with a 670 million EGP daily average, compared to 917 million EGP the week before,” Saeed noted.
He attributed the decline to traders’ tendency to gain profits along with small and mid caps’ sideways performance “leading a great number of investors to hold their position in anticipation of a clear vision.”
The analyst said EGX30 will focus on its resistance at 9,500 points next week, adding that the index may resume its upward movement toward 10,000 points upon crossing this barrier.