CAIRO: The Egyptian Exchange (EGX) plunged in Wednesday’s closing session for second week due to the ongoing decrease in Gulf oil prices, which dropped below $60 per Brent crude barrel Wednesday.
The benchmark index EGX30 dropped by 4.59 percent, registering 8124.68 points compared to 8,484 points at Tuesday’s close.
The EGX70 went down by 4.09 percent to 531.83 points while the EGX100 dropped by 3.77 percent, registering 1007.41 points.
The index EGX30 has fluctuated this week, losing over 4 percent Sunday and then showing a slight recovery of 1.34 percent.
Foreign and Arab shareholders are leaving the market to save cash liquidity to cover their credit positions in the Gulf stock market, resulting in such a significant drop in the EGX, said analyst Mona Mostafa, a member of the Economic African Center, in a statement. However, she said, the indexes could rebound as this week’s decline has been slower than last week.
“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,” chief technical analyst at Helwan Securities Ahmed Abdel Rahman told The Cairo Post Sunday.
“The market plummeted after Saudi Arabia rejected 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,” Ahmed Abdel Rahman added.