EGX ends on negative note battered by local sales
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) ended on a collective decline Wednesday hurt by selling pressures mostly from local traders.

The benchmark index EGX30 fell by 0.42 percent, registering 9,718 points, down from 9,760 points Tuesday. The small and mid-cap index EGX70 went down by 0.96 percent, amounting to 619.8 points, lower than 625.8 points from its last session. The broader EGX100 also decreased by 0.41 percent to reach 1,142 points.

Market capitalization shed around 1.2 billion EGP ($167.77million,) amounting to 524.8 billion EGP compared with 526 billion EGP from its last session.

“The main index closed below the important resistance level of 9,750 points because of profit takers who continued their selling activities at this significant level,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.

Feky added that the negative divergence which appeared at the index raised expectations that  the index would test its support level of 9,500 points at the coming few sessions.

“Today’s session is similar to the previous one in its sideways performance, but with a downward direction,” El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post, adding that the benchmark index is still trading around the level of 9,750 points.

Helal added in a comment on the early trading that the stocks’ performance is still very weak, but for some blue chips topped by the heavyweight CIB, Talaat Moustafa and EFG-Hermes, in addition to real estate stocks.

“The market is expected to extend its sideways trading inside the current flat wave, in anticipation of any positive news such as proceeding with the parliamentary election to resume its uptrend,” Helal predicted.

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