CAIRO: The Egyptian Exchange (EGX) opened with a plunge of 4.14 percent Sunday, continuing a downward trend from last week, in which market capitalization shed around 14 billion EGP ($2 billion.)
The benchmark index EGX30 registered 8,816 points in the morning down from 9,196 points at open.
“A breach below 9,000 points may lead the index to 8,800 points. The market will trade sideways with a downward tendency until 2014-end as global stock markets usually witness some dips ahead of the New Year and Christmas holidays since traders prefer to save some liquidity,” Ahmed Abdel Rahman, chief technical analyst at Helwan Securities, told The Cairo Post Saturday.
“The market plummeted after Saudi Arabia rejected [last] Sunday to cut its oil output despite the remarkable increase in supply which triggered oil to the lowest level since July, 2009 to hit $63 per barrel Friday,”Abdel Rahman added.