CAIRO: The Egyptian Exchange (EGX) lost ground for a second consecutive session, hammered by institutions’ selling pressure, while retailers tended to purchase.
The benchmark index EGX30 fell by 1.37 percent, closed at 9,576 points, compared to 9,709 Tuesday. Also, the small and mid-cap index EGX70 lost 1.17 percent to hit 556.9 points, down from 563 points in its last session. The broader index EGX100 declined by 1.05 percent, registering 1,120 points.
Meanwhile, market capitalization hiked to 524.6 billion EGP, compared to 516.7 billion EGP Tuesday.
“The benchmark fell sharply as sellers extended their pressure, leading the index to close four points below the support area of 9,580-9,600 points,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
However, a sustain above the mentioned support area, would help the EGX30 to advance toward 9,800-9,830 points, said Gamal Eldin, predicting a downward movement near the support level of 9,400 points if the index fails to hold steady, recommending traders watch the market closely at this “critical level.”
Wednesday’s slip coincided with the debut of trading on Orascom Construction LTD shares in the EGX under the symbol “ORAS,” as the first foreign dual listed company in the Egyptian market in 20 years.
Under the symbol “OC,” the company started trading its shares on NASDAQ Dubai Monday.
Orascom Construction offered 12.984 million new ordinary shares at 108.71/share EGP ($14.28/share), comprising 11 percent of its shares to the EGX retail investors and through private placement to institutions.