CAIRO: The Egyptian Exchange (EGX) ended in the green after the benchmark index EGX30 reversed its losing streak during early trading backed by positive performance by some leading stocks.
The EGX30 rose by 0.13 percent, registering 8,534 points, and up from 8,523.8 points Sunday. The small and mid-cap index EGX70 also went up by 1.32 percent, reaching 575.9 points compared to 568.4 points in the last session, and the broader index EGX100 added 1.01 percent to register 1,052 points.
Market capitalization gained around 1.2 billion EGP ($167.7 million), totaling 485.7 billion EGP compared to 484.5 billion EGP Sunday.
During Monday’s session, 94 stocks went up, 46 declined and 30 remained stagnant.
“Today’s session witnessed high fluctuations as foreign traders and speculators are tending to conduct short-term trades to reduce the price average of their shares,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Monday.
Abdel Rahman attributed the limited rise to the positive performance of some leading stocks, notably EFG Hermes, Qalaa and OTMT.
Foreign traders are distributing their purchasing positions to save some cash liquidity, as the market’s potential risk is increasing, said Abdel Rahman.
“The market’s medium-term trend was reversed from an uptrend and then to a sideways trend following the market plunge over the past session,” he added.
The EGX indices rode a sharp downward correction starting last week, and capitalization shed around 37.9 billion EGP battered by the collective dip of global markets due to mounting concerns about looming economic turmoil.
The gloomy economic forecast came largely in response to the IMF downgrading its global growth forecast for both 2014 and 2015.
The fund expected world economic growth to hit 3.3 percent in 2014, down 0.1 percent from its July forecast. While in 2015, it predicted 3.8 percent growth, down 0.2 percent from earlier expectations.