CAIRO: The Egyptian Exchange (EGX) shut on a negative note Thursday hurt by selling pressures led by institutions following the Wednesday’s rebound.
The benchmark index EGX30 lost 0.59 percent, registering 9,481 points, compared to 9,537 Wednesday. Also, the small and mid-cap index EGX70 fell by 0.63 percent to hit 574 points, down from 577.6 points in its last session. The broader index EGX100 decreased by 0.56 percent, recording 1,139 points.
Market capitalization declined to 515.5 billion EGP, compared to 521 billion EGP Wednesday.
“The benchmark slipped Thursday as sellers controlled the market, while buyers were not strong enough to contain the selling pressures,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Gamal added that the index is expected to resume its downward correction next week, which may lead it to breach below its support level of 9,340 points.
“Traders are advised to take advantage of rebounds through reducing their positions and not to build buying positions,” the analyst concluded.
Egypt’s market lost ground this week, but for a rebound on Wednesday, amid concerns after the Egyptian Army launched airstrikes on alleged havens of the Islamic State group in eastern Libya Monday.
The strikes, which killed around 50 militants in eastern Libya’s port city Derna, was a response to the Sunday release of a video showing the mass beheading of 21 Egyptian Copts who had been kidnapped in early January.