CAIRO: The Egyptian Exchange (EGX) showed a mixed performance during Wednesday’s early and mid-session as the benchmark index EGX30 rebounded while selling pressures forced the small and mid-cap index EGX70 to extend its downward direction.
The EGX30 rose by 0.27 percent to hit 9,626 points, compared to 9,600 points Tuesday. In turn, the EGX70 dropped 0.83 percent, registering 634 points, down from 639 points last session and the broader index EGX100 also decreased by 0.33 percent to reach 1,151 points.
Market capitalization added around 800 billion EGP ($111.8 million,) amounting to 524.6 billion EGP, compared to 523.8 billion EGP in its last session.
“The market rebounded at the beginning of today’s session to contain investors’ panic from yesterday, but it seems clear that the selling powers will dominate the market in the coming period,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post.
“A downward correction is normal and was expected in this stage,” Abdel Rahman said, predicting that the benchmark may slide toward 9,200 points or 8,800 points.
He noted that the correction will be sharp when the heavyweight CIB, along with Sodic, Talaat Moustafa, Ezz Steel and Telecom Egypt decline.
“Short-term traders are advised to take profits, while medium-term investors should benefit from the decline to increase their purchasing positions,” he added.
Meanwhile, the analyst reiterated that the EGX will maintain its uptrend in the medium term as long as the benchmark remains above 8,800 points.