CAIRO: The Egyptian Exchange (EGX) plunged Tuesday and market capitalization shed around 9.4 billion EGP ($1.31 billion) hurt by selling pressures from local and Arab traders.
On Tuesday, the benchmark index EGX30 fell by 2.6 percent, registering 8,878 points, down from 9,115 points Monday. The small and mid-cap index EGX70 dropped by 2.63 percent, reaching 597.7 points, compared to 613.8 in the last session, and the broader index EGX100 also lost 2.57 percent to register 1,112 points.
Market capitalization fell to 499.06 billion EGP, compared to 508.5 billion EGP Sunday. Turnover amounted to 1 billion EGP, up from 750 million EGP yesterday.
During this session, 151 stocks declined, only 19 shares went up and 15 remained stagnant.
“The benchmark index failed to sustain above the psychological support level of 9,000 points due to intensive selling pressures on the leading stocks amid high volume,” head of technical analysis at Capital Securities Brokerage Noha Raheel.
Meanwhile, some blue chips, including the market bellwether CIB, Ezz Steel and Plam Hills showed rebound signs as of the end of this session, said Raheel. “This may push the index toward 8,950 points in the coming session,” she predicted.
The market slump was a reaction to the negative performance of U.S. 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.
Meanwhile, Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage, told The Cairo Post that a breach below 9,050 points may drag it lower toward 8,450 points. He advised traders to sell the rally.