CAIRO: The Egyptian Exchange (EGX) lost ground Tuesday and market capitalization shed around 4.4 billion EGP ($615.16 million,) hurt by selling pressures namely from institutions after the market hit a 6-year high.
The EGX30 fell by 1.06 percent to hit 9,600 points, compared to 9,703 points Monday. The small and mid-cap index EGX70 dropped 1.85 percent, registering 639 points, down from 651 points last session and the broader index EGX100 also decreased by 1.4 percent to reach 1,155 points.
Market capitalization amounted to 523.8 billion EGP, compared to 528.2 billion EGP in its last session.
“The market breached near the higher resistance levels backed by the performance of only few key players in the real estate, and financial sectors while most of big and small caps didn’t cope with this rally,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
Feky said that the higher levels of the market pushed investors to avoid risk and led profit takers to sell portions of their portfolios at higher levels.
He added that the overwhelming selling pressure from the profit takers led small retailers to activate their stop loss points. “Investors are still at the safe side as long as the benchmark sustains its level above the major level of 9,500 points which acts as a strong support level.”
According to the analyst, Ezz steel was the best performer between big caps with 3.73 percent up, targeting 20.50 EGP as the first target for the short-term.
Traders are recommended to buy on dips and add new portions of stocks around their support levels, he concluded.