CAIRO: The Egyptian Exchange (EGX) plunged at open Sunday, and market capitalization shed around 5.3 billion EGP ($741 million) hammered by selling pressures on the leading shares, especially the heavyweight CIB.
Market capitalization fell to 519.5 billion EGP, compared to 524.8 billion EGP Thursday.
The benchmark index EGX30 dropped by 2.08 percent, registering 9,353 points, down from 9,552 points Thursday. The small and mid-cap index EGX70 fell by 1.05 percent, reaching 644.8 points, compared to 651.6 in the last session, and the broader index EGX100 also decreased by 0.17 percent to register 1,182 points.
“The benchmark index extended its downward direction after last week’s limited slide amid thin liquidity as the blue chips entered corrective movements following the successive increases, namely the market bellwether CIB,” Osama Naguib, the head of technical analysis at Arab Finance, told The Cairo Post.
Naguib said he expects the CIB to ride a downward correction that may drive the stock below 45 EGP, adding that this would push the main index to decline.
“The EGX70 and EGX100 also facing key resistance levels at 655 points and 1,190 points respectively. For this reason, the market is witnessing corrective profit taking activities,” Naguib added.
He predicted that the indexes and shares could off-set their losses partially during the rest of the session, ruling out that the EGX30 may breach below (9,280-9,300) points; the loss-stop level.