CAIRO: The Egyptian Exchange (EGX) dipped at open of Monday’s session hurt by selling pressures that appeared from the last session which shut on a negative note.
The benchmark lost 0.71 percent, recording 9,463 points, down from 9,530 points Sunday. Also, the small and mid-cap EGX70 fell by 0.54 percent, registering 569 points. The broader EGX100 index decreased 0.56 percent as well, reaching 1,132 points, down from 1,138 yesterday.
Market capitalization shed around 2.1 billion EGP (($293.7 million), totaling 509.3 billion EGP, compared to 511.4 billion EGP Sunday.
Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities predicted Sunday the market slip Monday over profit taking activities near its resistance level of 9,580 points, which may drag the index to slip toward 9,400 – 9,300 points.
Gamal told The Cairo Post that the benchmark index EGX30 traded sideways Sunday, giving a hint for the balance in power between buyers and sellers in the last session.
The market faces 9,580 points as a resistance level, followed by 9,800 points. On the other hand, the level of 9,300 points acts as first support level followed by 9,150 points, according to the analyst.
“Investors are advised to choose their stocks carefully and to enter a stock near its support levels. 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 recommended.