CAIRO: The Egyptian Exchange (EGX) lost ground Wednesday hammered by selling pressures led by local and Arab retailers, while foreigners mostly purchased.
The benchmark index EGX30 slipped 1.48 percent, registering 9,469 points, compared to 9,611 Tuesday. Also, the small and mid-cap index EGX70 fell by 1.17 percent to hit 562.9 points, down from 569.6 points in its last session. The broader index EGX100 also went down 1.1 points, registering 1,124 points.
Market capitalization dropped to 510.9 billion EGP, compared to 517.3 billion EGP Tuesday.
“The benchmark witnessed a sharp slip today as 28 of 30 index movers shut in the red area hurt by selling pressure from the beginning of the session, dragging the index to violate its support level of 9,600 points,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Gamal predicted that the EGX30 will continue its downward correction and said he expected it to breach below its support level of 9,340 points toward 9,050 points.
“Short-term investors are advised to reduce their position at resistance levels, while medium-term traders can hold on their positions,” the analyst told The Cairo Post.