CAIRO: The Egyptian Exchange (EGX) dipped at the open of Tuesday’s session hammered by global markets’ negative performance after Brent crude oil plunged below $55 per barrel, the lowest level since May 2009.
The benchmark index EGX30 slipped 2.48 percent, registering 8,787 points compared to 9,011 points Monday. Also, the small and mid-cap EGX70 fell by 1.35 percent, registering 565 points, compared to 573 in its last session.
The broader EGX100 index declined 1.03 percent, registering 1,097 points, compared to 1,108 points Monday.
Market capitalization shed around 8.1 billion EGP ($1.13 billion), totaling 495 billion EGP compared to 503.1 billion EGP yesterday.
“The market opened lower battered by Brent Crude price plunge toward Monday and its negative impact on global markets,” Amr el-Feky, portfolio and asset manager at Cairo Funds Management (CFM), told The Cairo Post.
Feky added that the EGX 30 breached below the major support level of 8,800 with overwhelming selling pressure. “Meanwhile, we consider these levels as buying opportunities for short-term traders mainly in big caps,” the analyst continued.
The key reason behind today’s decline was not trigger from local news, he said, adding “we believe a lot of opportunities will appear soon to re-enter the market at these critical levels.”