CAIRO: The Egyptian Exchange (EGX) lost ground Wednesday as selling pressures continued after the main index rallied to hit a three-week high over the past few sessions.
The benchmark index EGX30 ended 0.36 percent down after reducing morning losses, registering 9,450 points, down from 9,530 points Tuesday. The small and mid-cap index lost 0.11 percent, recording 618.4 points compared to 619.1 points in the last session. The broader index EGX100 also decreased 0.19 percent to register 1,129.8 points.
Despite the negative performance, market capitalization added around 2.2 billion EGP ($307.6million,) totaling 514.7 billion EGP, compared to 512.5 billion EGP Tuesday.
“The market dropped as the indexes resumed the selling spree that appeared yesterday after the benchmark approached its resistance at (9,500-9,600) points, where the short-term traders appeared to take some profits,” El-Mokattam Securities Brokerage technical analyst Walid Helal told The Cairo Post Wednesday.
Helal added that the bulls returned back to the 1st support level of 9,380 points, which is expected to act as a stop-loss point.
The analyst said the market started to rebound after the mid-session, trimming the morning losses, adding that the EGX70 showed a better performance along with the speculation stocks after finishing correction waves.