CAIRO: The Egyptian Exchange (EGX) plunged Tuesday battered by global markets’ negative performance after Brent crude oil breached below $55 per barrel, recording the lowest level since May 2009.
The benchmark index EGX30 slipped 2.35 percent, registering 8,799 points compared to 9,011 points Monday. Also, the small and mid-cap EGX70 fell by 1.73 percent, registering 563.3 points, compared to 573 in its last session.
The broader EGX100 index declined 1.21 percent, registering 1,095 points, compared to 1,108 points Monday.
Market capitalization shed around 9.4 billion EGP ($1.31 billion,) totaling 493.7 billion EGP compared to 503.1 billion EGP yesterday.
“The benchmark index was hurt by intensive selling pressure led by Arab traders and institutions which drag it to breach below the support level of 8,800 points,” head of technical analysis desk at Cairo Capital Securities Adham Gamal Eldin told The Cairo Post.
Gamal added that the index shut near its support level hammered by Gulf markets’ sharp slip along with the U.S negative shut due to oil price decline.
“The market is greatly expected to see some minimal rebounds in the coming sessions as the EGX30 still near its support level. This represents a chance for short-term trades and reducing positions until the market trend becomes clear,” the analyst detailed.
Traders are recommended to watch the blue chips’ performance closely as this will resolve the index movement in the coming period, Gamal concluded.