EGX trades sideways amid expectations of profit taking activities
Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) extended it mixed performance at the open of Thursday’s session, amid sideways trading after the benchmark index EGX30 rallied for three days in a row backed by local institutions’ purchases.

The benchmark added a slight 0.07 percent, registering 9,550.7 points compared to 9,544 points Wednesday. In turn, the small and mid-cap EGX70 fell by 0.17 percent, registering 580.5 points, compared to 581 in its last session. The broader EGX100 index lost 0.08 percent, reaching 1,155 points.

Market capitalization shed around 1.3 billion EGP ($181.92 million,) totaling 513.3 billion EGP, compared to 515 billion EGP yesterday.

“The EGX30 is likely to face profit taking processes near its resistance level of 9,580 points that may drag it near the area between 9,400 – 9,300 points,” Adham Gamal Eldin head of the technical analysis desk at Cairo Capital Securities told The Cairo Post.

Gamal added that the level of 9,580 points acts as a resistance level, followed by 9,800 points, and that support levels range between 9,300 and  9,150 points.

“Investors are advised to choose their stocks carefully, enter a stocks near its support levels, and they also should take profits near resistance levels for short-term trading purposes and activate their stop loss tactic to avoid any risks that may occur,” Gamal said.

The EGX30 closed shut on a positive note yesterday, adding  2.53 percent due to the heavy buying power from buyers at both big and small caps, which led the index to close near a resistance level of 9,580 points accompanied by heavy turnover.

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