CAIRO: The Egyptian Exchange (EGX) showed a mixed performance at the open of Monday’s session, as the benchmark index went down due to selling pressures, namely from Arab and foreign traders.
Analysts expected a negative performance Monday amid concerns of escalated clashes and violence between Muslim Brotherhood supporters and security forces following the fourth anniversary of the January 25 Revolution.
The market was also hurt by Arab sales triggered from the death of Saudi Arabia’s late King Abdullah bin Abdulaziz al-Saud.
The EGX decided to delay the trading session for one minute to start on Monday, at exactly 10.01 am to mourn the death of late king. The EGX chairman, vice chairman and market participants stood for a minute of silence before the start of the trading session, according to a statement.
On Monday, the benchmark index EGX30 fell by 0.8 percent, registering 9,820 points, compared to 9,898 Thursday. In turn, the small and mid-cap index EGX70 added a slight 0.26 percent to 571 points, up from 569.9 points in the last session. The broader index EGX100 showed a flat performance losing only 0.07 points.
“The benchmark is expected to ride a downward wave and re-test the level of 9,580 points Monday, Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities told The Cairo Post.
Last week the EGX30 managed to breach above its resistance level of between 9,800-9,830 points and tried to advance toward its secondary resistance level of 10,000 points during Thursday’s session, but ultimately failed.
According to the analyst, the market faces the level of 9,800-9,830 points as a first support level, then 9,580 points, while the level of 10,000 points acts a resistance level followed by 10,500 points.