CAIRO: The Egyptian Exchange (EGX) tumbled for a second consecutive session Tuesday, amid increasing panic after the Egyptian Army in cooperation with Libyan Air Forces launched airstrikes on alleged havens of the Islamic State group Monday.
The strikes in the port city of Derna in eastern Libya which killed around 50 militants followed the Sunday release of a video showing the mass beheading of 21 Egyptian Copts who had been kidnapped in early January.
The benchmark index EGX30 slipped 1.59 percent, registering 9,433 points, compared to 9,586 Monday. Also, the small and mid-cap index EGX70 fell by 2.66 percent to hit 569.9 points, down from 585.5 points in its last session. The broader index EGX100 decreased by 2.02 percent, recording 1,132 points.
Market capitalization slipped to 517.1 billion EGP ($67.79 billion,) compared to 523.6 billion EGP Monday.
“The benchmark faced intensive selling pressures, which dragged it below its support levels of 9,800 points and 9,580 points respectively,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
The sellers dominated the market and the bulls tried to contain selling pressures more than once, Gamal told The Cairo Post. Meanwhile, the buyers eventually took the upper hand at the last hour of the session as the index managed to sustain and rebound slightly boosted by purchases on most stocks which were near to their supports, added the analyst.
“It is expected to see a rebound in the next session and the benchmark in likely to advance toward 9,600 points, which is a profit-taking opportunity for short-term investors,” Gamal concluded.