EGX sheds 2B EGP this week, benchmark may target 9,600 points
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) showed mixed performance during this week, and market capitalization shed around 2 billion EGP ($280 million.)

Egypt’s market lost  ground for three consecutive sessions 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, the market was hurt by Arab sell-offs following the Sunday OPEC decision not to cut oil output.

“The benchmark index EGX30 failed early this week in penetrating its previous resistance level at 9,370 points and dipped towards 9,150 points. Meanwhile, the index managed to stop its loss above 9,150 points and rebounded Wednesday to breach above its resistance,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.

During the course of the week, the benchmark index rebounded and approached its short-term target of 9,500 points, closing at 9,458 points Thursday, 1.4 percent up from 9,325 points last week.

The small and mid-caps index EGX70 slipped 1.1 percent to 634.98 points down from 642.08 points last week, while the broader index EGX100 remained stagnant at 1153.6 points.

Saeed attributed the EGX30’s hike to the positive performance of blue chips that managed to sustain above their support levels, namely the market bellwether CIB stock, which crossed its  resistance at 50 EGP, shutting Thursday at 50.61 EGP.

According to the analyst, the EGX70 showed a mixed performance with sharp slides early this week as it dropped near its support level at 623 points. However, the index received support from leading shares and managed to rebound, ending Thursday near 635 points.

Total trade value and volume have seen settled this week ranging between 580 million EGP to 720 million EGP. Meanwhile, a significant hike to nearly 910 million EGP on Thursday raised the daily average to 745 million EGP compared to 665 million EGP the week before, Saeed said.

According to the analyst, the EGX30 will focus on its next resistance of 9,600 points. “Breaching above this level may push the index higher to retest its previous peak near 9,800 points,” Saeed said.

Saeed predicted the EGX70 may target (640-645) points if it manages to maintain its position above the support level of 623 points.

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