CAIRO: The Egyptian Exchange (EGX) showed mixed performance at open of Sunday’s session amid sideways trading due to global markets’ escalated concerns about crude price.
The benchmark index EGX30 fell a slight 0.11 percent, registering 8,936 points compared to 8,946 points Thursday. In turn, the small and mid-cap EGX70 rose by 0.09 percent, registering 572.5 points, compared to 572 in its last session. The broader EGX100 index was almost flat at 1,111 points.
Market capitalization shed around 500 million EGP ($69.9 million,) totaling 498.2 billion EGP compared to 498.7 billion EGP.
“Egypt’s stock market is still affected by the global markets’ performance as oil prices slipped last week to $50.11 per barrel; the U.S. markets dipped as well while Gulf markets resumed trading on slight rises,” head of technical analysis desk at Cairo Capital Securities Adham Gamal Eldin told The Cairo Post.
Gamal added that the EGX is expected to trade sideways with a downward tendency during the rest of the session, advising traders to reduce their positions until the market trend becomes clear.
According to the analyst, the market will extend its sideways trading at the current levels if the market bellwether CIB failed to sustain above 50 EGP. EGG-Hermes is also trading near its support level of 14.9 EGP. “A breach below this area may drag the index to lower levels,” he added.
“The benchmark is likely to breach its support level at 8,800 points in the next session,” said Gamal.