EGX dips at open hurt by OPEC decision, local unrest
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) extended its losing streak at the open of Monday’s session, hurt by local unrest following a final court ruling that dropped charges against former President Hosni Mubarak over the killing of protesters during the 2011 January 25 Revolution.

Additionally, all Gulf stock markets plunged yesterday over a decision by OPEC not to cut oil output. Egypt’s capital market was in turn hurt by Arab sell-offs following the OPEC decision.

The benchmark index EGX30 fell by 0.17 percent, registering 9,291 points compared to 9,307 points Sunday. Also, the small and mid-cap EGX70 lost 0.15 percent, recording 639 points compared to 640.6 points in the last session. The broader index EGX100 also decreased by 0.22 percent to register 1,148 points.

Market capitalization almost maintained its Sunday level at 522 billion EGP ($72.98 billion).

“The benchmark index failed to penetrate its resistance level at 9,350 points amid the negative performance of blue chips, namely the heavyweight CIB stock, Talaat Moustafa, EFG-Hermes and Telecom Egypt,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Monday.

Abdel Rahman expected the market would likely witness a dip toward 9,160 points, adding that a breach below this level may drag the main index toward 9,000 points to 8,800 points.

“OPEC’s decision will fuel Arab traders’ bearish sentiment. They will tend to sell their shares in light of the fatal losses in the Gulf markets,” the analyst added.

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