CAIRO: The Egyptian Exchange (EGX) lost ground for a second consecutive week, and market capitalization shed around 15.2 billion EGP ($1.99 billion).
Egypt’s market was rattled by the Sunday release of a video showing the mass beheading of 21 Egyptian Copts by members of the Islamic State (IS) group in Libya Sunday.
In response, the Egyptian Army in cooperation with Libyan Air Forces launched airstrikes on alleged havens of the IS group in eastern Libya Monday.
The benchmark index EGX30 slipped 2.7 percent, closing the week at 9,481 compared to 9,747 points a week earlier. Also, the small and mid-cap index EGX70 dropped 3.7 percent to 574 points, down from 596 points in the previous week.
“The EGX30 plunged 5 percent on Monday and Tuesday after the military launched air strikes on IS militants and hotbeds in Libya, due to intensive selling pressure namely on blue chips led by the heavyweight CIB,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
CIB, the market bellwether, slipped toward its support level near 54 EGP, said Saeed, adding that Talaat Moustafa Holding, the second ranked on the benchmark, also failed to sustain above its key support of 10.8 EGP.
The EGX30 will shadow the upcoming political events, especially launching new military strikes to IS group, said the analyst, adding that the benchmark will focus on its support of 9,370 points. “Holding steady above this level would push the index to re-test the resistance level of 9,800 points.”
Saeed predicted the EGX70 will focus on its support near 563-568 points, noting that sustaining above this level may lead it toward 585 points.