CAIRO: The Egyptian Exchange (EGX) ended on a negative note Monday, hammered by selling pressures following the market 6-year rally in the last two sessions.
The EGX30 fell by 0.21 percent to hit 9,703 points, compared to 9,723 points Sunday. The small and mid-cap index EGX70 dropped 1.42 percent, registering 651 points, down from 660.8 points last session and the broader index EGX100 also decreased by 0.82 percent to reach 1,171 points.
Market capitalization shed around 2.2 billion EGP ($307.58 million), amounting to 528.2 billion EGP, compared to 530.4 billion EGP in its last session.
“The market managed to sustain in the sideway range from the beginning of the session till the overwhelming selling pressure triggered from the profit takers at the second half of the session,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
Feky added that investors’ selling spree led the index to close lower as it pushed a lot of equities near their first supports in the short-term,
“We expect the market to open lower tomorrow, but we may see buyers near supports around 9,500 points,” he predicted.
Mona Moustafa, technical analyst at the African Economic Group, told The Cairo Post she predicted the EGX would extend its sideways movement with an upward tendency in anticipation of the emergence of purchasing powers that may push the indexes up towards next targets.
“Traders are advised to begin to build new positions especially tomorrow on small caps, while monitoring bank, telecom, basic resources, ginning and steel stocks,” Moustafa recommended.