EGX declines at open hurt by selling pressures on CIB
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) opened on a collective decline Thursday hurt by selling pressures on financial sector stocks, largely on market bellwether CIB.

The benchmark index EGX30 fell by 0.72 percent, registering 9,675 points, down from 9,745 points Wednesday. The small and mid-cap index EGX70 dropped a slight 0.01 percent, reaching 640 points, and the broader index EGX100 also decreased by 0.05 percent to register 1,169 points.

Market capitalization shed around 1.2 billion EGP ($167.6 million), amounting to 526.7 billion EGP compared with 527.9 billion EGP Wednesday.

Head of technical analysis at Capital Securities Brokerage Noha Raheel attributed the decline to extended selling pressures after the main index approached its resistance level of 9,820 points Tuesday.

“The financial sector stocks, led by the heavyweight CIB, are the main reason for the decline,” Raheel told The Cairo Post.

Raheel cited the thin liquidity to traders’ tendency to keep their cash ahead of holidays, as the EGX will close to celebrate Eid al-Adha and armed forces holidays starting Sunday and lasting until Tuesday. Trading will resume on Wednesday.

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