CAIRO: The Egyptian Exchange (EGX) shut on a collective decline hurt by selling pressures led by local and foreign institutions.
The benchmark index EGX30 fell by 1.31 percent, registering 9,770 points, compared to 9,900 Tuesday. Also, the small and mid-cap index EGX70 lost 1.03 percent to hit 595 points, down from 601 points in its last session. The broader index EGX100 went down by 0.94 points, recording 1,168 points.
Market capitalization shed around 5.5 billion EGP ($731 million,) totaling 528.3 billion EGP, compared to 533.8 billion EGP Tuesday.
“The benchmark shut on a negative note, but it is likely to sustain during Thursday’s session above 9,800 points, boosted by the International Monetary Fund’s (IMF) positive report on Egypt’s economy,” Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
In its first major assessment of Egypt’s economy since 2011, the IMF stated, “Egypt’s economy is likely to grow by 3.8 percent in 2014/15 and to rise “steadily” to 5 percent in the medium-term.”
The report issued Wednesday afternoon on the occasion of Article IV consultations’ conclusion predicts that fiscal consolidation will slash the budget deficit below 8 percent of GDP by 2018/19.
Gamal added that the benchmark may trade sideways with a downward tendency below the resistance level of 10,000 points until the upcoming Egypt Economic Development Conference, scheduled in March.