CAIRO: The Egyptian Exchange (EGX) ended on a mixed note Thursday as the benchmark index declined after failing to sustain above its resistance level of 9,750 points due to selling pressures, mostly from local traders.
The EGX30 fell by 0.22 percent, registering 9,697 points, down from 9,718 points Wednesday. In turn, the small and mid-cap index EGX70 went up by 0.07 percent, amounting to 620.3 points, higher than the 619.8 points from its last session. The broader EGX100 also increased by 0.14 percent to reach 1,144 points.
Market capitalization shed around 300 million EGP ($41.94 million), amounting to 524.5 billion EGP compared with 524.8 billion EGP from its last session.
“The benchmark index failed to overcome the selling pressures around its strong resistance level at 9,750 points, which the index tested several times,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
Feky added that the main index ended last week’s trading with negative indicators that are expected to drag it toward the key support level of 9,500 points for retesting.
Commenting on the early trading to The Cairo Post, Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, said the EGX30 is obviously experiencing technical weakness that could lead to a sideways correction between 9,400 points and 9,820 points.
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.