CAIRO: The Egyptian Exchange (EGX) showed a mixed performance during Wednesday’s early and mid-session trading amid expectations of a remarkable profit taking during the rest of the session.
The benchmark index EGX30 rose by 0.29 percent to hit 9,651 points, compared to 9,623 points Tuesday. In turn, the small and mid-cap index EGX70 fell by 0.57 percent, registering 666 points, down from 669.8 points last session and the broader index EGX100 lost 0.35 percent to reach 1,184.9 points.
Market capitalization gained around 600 million EGP ($83.9 million,) reaching 529.4 billion EGP, up from 528.8 billion EGP in its last session.
“The benchmark approached its target at 9,670 points after penetrating the resistance level of 9,500 points due to the rally of the heavyweight CIB stock which recorded its all-time high at 48 EGP,” Chief technical analyst at Helwan Securities Ahmed Abdel Rahman told The Cairo Post.
Abdel Rahman attributed the high volume during the last session to the appearance of selling powers along with purchasing powers which have been leading the markets for more than 6 weeks.
He predicted that selling pressure would dominate the rest of today’s session, namely on most leading stocks such as CIB, Ezz Steel, Sodic, Heliopolis and Hermes.
“Traders are advised to protect their profits below 9,500 points taking into account the liquidity that will be injected from the stock market into the Suez Canal investment certificates,” the analyst concluded.
EGX 30 has breached the resistance level of 9,510 indicating that the bulls are gathering more power; this power may send it higher towards 9,750 points as a next target, Head of the Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr told The Cairo Post.