EGX dips at close hurt by closure of foreign embassies
Egyptian stock exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) lost ground at the close of Wednesday’s session, as the main index extended its losing streak battered by the shut of some foreign embassies over security concerns.

The benchmark index EGX30 fell by 0.83 percent, registering 9,404 points compared to 9,482 points Tuesday. Also, the small and mid-cap EGX70 lost 0.26 percent, recording 627.9 points compared to 629 points in the last session.

Market capitalization lost around 3 billion EGP, totaling 515.9 billion EGP compared to  518.9  billion EGP yesterday.

“Profit takers  extended  their activities but the dip did not harm the stocks, but for those which soared recently,” Mona Moustafa, a technical analyst at the African Economic Group, told The Cairo Post.

Moustafa added that the stocks re-tested their support levels where the bulls could dominate the market and restrain the plunge.

“Traders are recommended to conduct some trades on small caps, and save cash liquidity for catching a buy signal at possible dips,” she concluded.

On Sunday, the U.K. and Canada both closed their embassies in Cairo over unspecified security concerns, while the Australian Foreign Ministry warned its citizens Dec. 06 of “possible terror attacks.”

The market dipped yesterday as the benchmark index dropped 1 percent, and market capitalization shed around 7 billion EGP.

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