CAIRO: The Egyptian Exchange (EGX) lost ground for a third consecutive day by end of Tuesday’s session as the benchmark index EGX30 failed to maintain early gains hurt by selling pressures on blue chips.
Egypt’s market was rattled 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, Egypt’s capital market was hurt by Arab sell-offs following the OPEC decision Sunday not to cut oil output.
On Tuesday, the benchmark index EGX30 fell by 0.51 percent, registering 9,187 points compared to 9,233 points Monday. The small and mid-cap EGX70 lost 1.61 percent, recording 628 points compared to 638 points in the last session. The broader index EGX100 dropped 1.1 percent to register 1,134 points.
Market capitalization shed around 6 billion EGP ($838.86 million,) totaling 513.6 billion EGP, compared to 519.6 billion EGP Monday.
“The market managed to stay at the sideway range above 9,000 points, failing to breach above 9,340 points,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management, told The Cairo Post Tuesday.
Feky attributed the slide to the negative performance of blue chips, except for the market bellwether which maintained its steady movement.
“As Capital Securities Brokerage technical analysis head Noha Raheel had predicted in a statement to The Cairo Post Tuesday that the main index may extend its losing streak today because the sellers are still dominating the market.
Raheel added that the selling pressures may drag the index to the level of 9,150 points on intraday. “Meanwhile, the indicators still give a positive signal, and the index may return back to 9,500 points as a short-term target.”
The analyst advised traders to watch the volume, take profit and respect the stop loss and watch the market for an entry point.