CAIRO: The Egyptian Exchange (EGX) shut on a negative note Sunday amid sideways trading due to global markets’ escalated concerns about crude price.
The benchmark index EGX30 fell a slight 0.41percent, registering 8,909 points compared to 8,946 points Thursday. Also, the small and mid-cap EGX70 lost 0.16 percent, registering 571 points, compared to 572 in its last session. The broader EGX100 index was almost flat at 1,110.7 points.
Market capitalization shed around 2.3 billion EGP ($321.58 million,) totaling 496.35 billion EGP compared to 498.7 billion EGP.
“Egypt’s stock market traded sideways with a downward tendency hurt 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 advised 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.