CAIRO: The Egyptian Exchange (EGX) shut on a mixed note Sunday, hammered by selling pressures mostly from local and Arab traders amid a significant decline in liquidity.
The benchmark index EGX30 fell by 0.97 percent, registering 9,603 points and down from 9,697 points Thursday. In turn, the small and mid-cap index EGX70 rose by 0.07 percent, reaching 620.7 points and higher than the 620.3 points from its last session. The broader index EGX100 dropped by 0.30 percent to register 1,140 points.
Market capitalization shed around 1.5 billion EGP ($209.49 million), amounting to 523 billion EGP compared with 524.5 billion EGP from its last session.
“The main index witnessed a significant decline because of the selling pressure that appeared at both the big and small caps, which led the index to close at 9,603 points,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post.
Investors are advised to carefully choose their stocks to avoid any risks that may occur in the coming session, said Feky. “It is still expected that the EGX30 could test its support level of 9,500 points in the coming few sessions,” he predicted.
Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, said the EGX30 is obviously experiencing technical weaknesses 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, Nemr told The Cairo Post; he advised investors to be selective.