CAIRO: The Egyptian Exchange (EGX) extended its losing streak at the open of Tuesday’s session and market capitalization shed around 1 billion EGP ($139.8 million) hurt by selling pressures from local and Arab traders.
On Tuesday, the benchmark index EGX30 fell by 1.03 percent, registering 9,021 points, down from 9,115 points Monday. The small and mid-cap index EGX70 decreased by 1.05 percent, reaching 607 points, compared to 613.8 in the last session, and the broader index EGX100 also dropped by 0.89 percent to register 1,112 points.
Market capitalization fell to 507.5 billion EGP, compared to 508.5 billion EGP Sunday.
During this session, 77 stocks declined, only 21 shares went up and 22 remained stagnant.
“Today’s session opened on a collective decline battered by selling pressures in reaction to the negative performance of US markets Monday,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities told The Cairo Post.
The market plunged Sunday and the main index dropped more than 4 percent, losing more than 14 billion EGP following a U.S. and European share fall Friday, due to mounting concerns over the pace of global economic growth.
“There is a state of panic in the market, and we have automatic sale orders if the benchmark index breaches the psychological support level of 9,000 points,” Abdel Rahman stated.
Foreign institutions and retailers have a tendency to purchase, raising the possibility of upward price rebounds, he predicted.
“The EGX 30 has reached a level that could produce a bounce. A bounce from the positive trend line may send it higher to 9,380 points and then 9,600 points,” Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, told The Cairo Post.
However, a breach below 9,050 points may drag it lower toward 8,450 points, Nemr added, advising traders to sell the rally.