CAIRO: The Egyptian Exchange (EGX) opened on a mixed performance Thursday as the benchmark index EGX30 extended its slide after failing to sustain above its resistance level of 9,750 points hurt by selling pressures.
The EGX30 fell by 0.06 percent, registering 9,712.8 points, down from 9,718 points Wednesday. In turn, the small and mid-cap index EGX70 went up by 0.37 percent, amounting to 622 points, higher than the 619.8 points from its last session. The broader EGX100 also increased by 0.23 percent to reach 1,145 points.
Market capitalization added around 200 million EGP ($27.96 million), amounting to 525 billion EGP compared with 524.8 billion EGP from its last session.
“The EGX30 is obviously experiencing technical weakness that could lead to a sideways correction between 9,400 points and 9,820 points,” Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, told The Cairo Post Thursday.
On the other hand, a confirmed breach above 9,820 points may send it higher towards 10,050 points, said Nemr, advising investors to be selective.
He added that the EGX70 failed to hold above 635 points. “This may drag it toward 600 points, and a confirmed breach below 600 points may drive it lower to 585 points,” he said.
Traders are advised to sell during the rally and wait for a buy signal, Nemr said.