EGX rebounds on open after Sunday plunge
Egyptian Exchange - AFP/Marco Longari
By YASMINE SAMRA

CAIRO: The Egyptian Exchange (EGX) rebounded with a rise of .44 percent Monday after a steep drop Sunday.

The benchmark index EGX30 registered 8,754, up from 8,716 at Monday open. Over Sunday’s trading the index lost more than 400 points.

“The session of today may continue to decline because it appears sellers can get 8,600 in the short-term,” said Noha A.Rahmn Raheel, a technical analyst with Capital Securities Brokerage.

She recommended traders respect the stop loss and watch the market for an entry point.

Last week market capitalization shed around 14 billion EGP ($2 billion.)

“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.

 

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