CAIRO: The Egyptian Exchange (EGX) plunged Sunday, and equities shed more than 5.5 billion EGP ($721 million) battered by local and foreign institutions’ sell-offs.
The benchmark index EGX30 tumbled 1.72 percent, registering 9,354.7 points, compared to 9,518 Thursday. Also, the small and mid-cap index EGX70 slipped 2.33 percent to 528.18 points, down from 540.8 points in its last session. The broader index EGX100 dipped 1.88 percent as well, recording 1,078 points.
Market capitalization dropped to 514.8 billion EGP, compared to 520.3 billion EGP Thursday.
“The benchmark closed on a negative note with all of 30 index movers ending in the red area,” said Adham Gamal Eldin, head of the technical analysis desk at Cairo Capital Securities.
Citing the sharp slip to the heavy selling pressure and lack of the real buying power which would push the index to higher levels, Gamal Eldin predicted that the index could decline to reach near the support level of 9,050 points in the coming few weeks, “where the real buyers may appear and absorb the selling pressure” and lead the index to move upward strongly.
The market faces between 9,580 and 9,600 points as a resistance level, while the range of 9,350-9,400 acts as a first support area followed by 9,260 points, according to the analyst.
“Long and medium- term investors can hold on their positions, while short-term traders are advised to hold on their cash and wait for a new buying signal,” he concluded.