CAIRO: The Egyptian Exchange (EGX) lost ground Wednesday and market capitalization shed around 1.7 billion EGP ($227.57 million) hurt by selling pressures after its benchmark recorded its highest level over the past six years Tuesday.
The benchmark index EGX30 fell by 0.83 percent, registering 9,963 points, compared to 9,946 Tuesday. Also, the small and mid-cap index EGX70 lost 0.74 percent to 575 points, down from 579 points in the last session while the broader index EGX100 has also decreased by 0.31 points, recording 1,142 points.
Market capitalization slipped toward 523.2 billion EGP, compared to 524.9 billion EGP Tuesday.
“The market was battered by profit taking after the benchmark approached its resistance level of 10,000 points in the past session,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Gamal added that the buyers tried to absorb the selling pressures but failed, raising expectation that the main index may extend its downward toward 9,800 points in the coming session.
“Failing to sustain above 9,800 points, may drag the index toward its support of 9,600 points,” said Gamal Eldin.