CAIRO: The Egyptian Exchange (EGX) lost ground for a third consecutive week, and market capitalization shed around 15.6 billion EGP ($2.04 billion.)
Since the middle of February, Egypt’s market rode a violent downward movement battered by the release of a video showing the mass beheading of 21 Egyptian Copts by members of the Islamic State (IS) group in Libya.
In an immediate reaction, the Egyptian Army in cooperation with Libyan Air Forces launched airstrikes on alleged havens of the IS group in eastern Libya early on Feb. 16.
“The benchmark index EGX30 tended to sideways trading this week between its support of 9,370 points and its new resistance near 9,650 points,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.
Saeed pointed out that the extended slip was coupled with a significant decline in trading volumes and values, which plunged to close to 193 million EGP on Sunday’s, the lowest level since July 2013.
“Turnover returned to normal rates only during Monday’s session following President Abdel Fatah al-Sisi’s speech in which he tackled several issues, namely Egyptian-Gulf relations, the upcoming March economic summit and Egypt’s war against terrorism,” added the analyst.
The EGX30 will focus on its support of 9,370 points, predicted the analyst. “Sustaining above this level would push the index to re-test a resistance level of at least 9,600 points.”
Saeed predicted the EGX70 will focus on its support near 550-555 points, noting that holding steady above this level may halt its backward movement.