CAIRO: The Egyptian Exchange (EGX) lost ground after dropping Thursday’s morning gains due to selling pressures, mostly on blue chips.
The benchmark index EGX30 fell by 0.79 percent, registering 9,420 points, down from 9,450 points Wednesday, and the small and mid-cap EGX70 index lost 0.08 percent, recording 617.9 points compared to 618.4 points in the last session. The broader index EGX100 also decreased 0.31 percent to register 1,126.4 points.
Despite the slide, market capitalization added around 4.7 billion EGP ($657.28 million), totaling 519.5 billion EGP compared to 514.7 billion EGP Wednesday.
“The benchmark index tested the level of 9,500 points for a third session in a row, but it failed to sustain above this area and shut at 9,420 points,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Thursday.
Abdel Rahman added that the EGX30 will likely resume a price decline wave after reaching a correction target around 9,485 points.
Despite the morning rebound, Mona Moustafa, a technical analyst with the African Economic Group, predicted the market would resume its limited profit taking wave near current resistance areas.
The impact of this profit taking wave will be clearly seen on indexes, but will not harm stocks, Moustafa told The Cairo Post Thursday.
According to the analyst, the benchmark index has resistance between 9,530 and 9,600 points, and its first and second support at 9,297 and 9,150 points, respectively.
“Traders are advised to monitor their shares closely, be selective while purchasing strong stocks that reach main support levels in dips and to save liquidity for a buy signal,” she said.
The stock market lost ground Wednesday as selling pressures continued after the main index rallied to hit a three-week high over the past few sessions.