EGX opens on negative note amid sideways trading
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) opened on a negative note as market capitalization shed around 1.1 billion EGP ($153.79 million) and indexes traded sideways with a downward tendency.

The benchmark index EGX30 fell by 0.38 percent to hit 9,498 points compared to 9,534 points Tuesday. The small and mid-cap index EGX70 lost 0.48 percent, amounting to 625 points, up from 628 points last session and the broader index EGX100 also decreased by 0.4 percent to reach 1,133 points.

Market capitalization fell to 519.4 billion EGP, compared to 520.5 billion EGP in its last session.

Mona Moustafa, technical analyst at the African Economic Group, told The Cairo Post he expected the market may witness downward sideways trading, namely at the open, citing price differences and stocks closes yesterday in light of the significant decline of turnover.

Moustafa explained that the benchmark index is trading between the resistance level of 9,500 points and support level of (9,380-9,445) points. Meanwhile, the EGX70 is facing resistance at 632 points and finds support at 624 points and then 618 points, she added.

“Long and medium-term traders are recommended to distribute some positions while short-term investors should conduct some trades and to take advantage of the price decreases of certain strong stocks,” she said.

The market ended on a positive note Tuesday and market capitalization gained around 2.4 billion EGP, backed by local and Arab purchases.

The market was boosted by an investor upbeat sentiment about the Suez Canal certificates’ oversubscription which totaled 64 billion EGP; the government issued the certificates in hopes of raising 60 billion EGP to finance a Suez Canal expansion project that includes a new 72 kilometer branch of the major world waterway parallel to the current canal.

The benchmark index EGX30 rose by 0.93 percent to hit 9,534 points compared to 9,446 points Monday. The small and mid-cap index EGX70 added 0.77 percent, amounting to 628 points, up from 623 points.

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