CAIRO: The Egyptian Exchange closed Sunday down almost 50 points to 9,373 after a small rise in the morning that reached 9,435 points, from 9,420 points at close Thursday.
The benchmark index EGX30 lost 0.51 percent, after it fell 1.15 percent last week, while the EGX 70 rose 1.75 percent to reach 628 points after last week’s rise of 0.20 percent.
“The market declined today as it faces strong selling pressure from the profit takers but our outlook still positive toward the short and medium term,” said Amr el-Feky, portfolio and asset manager at Cairo Funds Management, adding that investors should buy on dips.
“The most important factor I should mention is retail, which got involved in the market.”
“The correction is healthy for the market to continue its upward move toward 10,500,” he said, and predicted that the new money which entered the past week’s rally would lead the market to reach higher levels in the next sessions.
EGX 30 reached the short-term target territory of 9,590 points last week ; the Naeem brokerage warned profit-taking may lead to a decline towards the 9,150 point support level; although confirmed breach above 9,600 may send it higher towards 9,830 points.
The Naeem brokerage advised investors are to buy near supports, as the stop-loss limit is 8,600 points.