CAIRO: The Egyptian Exchange (EGX) ended on a negative note after reducing Monday’s morning losses, but market capitalization still shed around 1.6 billion EGP ($223.69 million) amid strong bearish sentiment, mostly from foreign and Arab investors.
Egypt’s stock market slipped more than 4 percent Sunday, losing more than 14 billion EGP amid a selling spree led by foreign institutions and Arab retailers following a U.S. and European share fall Friday. The fall was due to mounting concerns over the pace of global economic growth.
Gulf markets also collapsed, as the Dubai and Saudi stock markets both dropped around 6 percent.
On Monday, the benchmark index EGX30 dropped by 0.53 percent, registering 9,115 points, down from 9,163 points Sunday. The small and mid-cap index EGX70 fell by 2.16 percent, reaching 613.8 points, compared to 627 in the last session, and the broader index EGX100 also decreased by 1.62 percent to register 1,122 points.
Market capitalization fell to 508.5 billion EGP, compared to 510.1 billion EGP Sunday.
During this session, 130 stocks declined, only 29 shares went up and 22 remained stagnant.
“As the EGX30 closed Sunday below its support level of 9,380 points, the bears gained more power, which may send the benchmark lower towards between 8,900 points to 9,050 points,” Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, told The Cairo Post.
On the other hand, a rebound towards either 9,380 points or the resistance of 9,590 points might be a sell opportunity, Nemr added, advising traders to sell the rally.
El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post, “The market may rebound temporarily after losing around 800 points in the past few sessions amid its corrective wave, which started before Eid al-Adha.”
The slide coincided with negative news about the global market slump, in addition to violent protests at Egypt’s universities on the first day of the semester, which triggered more sell-offs, Helal added. He remained optimistic however.
“Today’s session was a recovery and the market will rebound tomorrow and resume its bullish trend toward 9,200 points,” Helal predicted.