EGX loses ground as Egypt joins Arab airstrikes on Yemen
Egyptian Exchange - YOUM7(Archive)

CAIRO: The Egyptian Exchange (EGX) extended its losing streak at the close of Thursday’s session, as the benchmark index EGX30 ended 1.59 percent lower over selling pressures led by foreign institutions along with local and Arab retailers.

The benchmark slid to 9,052 points at close, compared to 9,198 Wednesday. Also, the small and mid-cap index EGX70 dipped 1.34 percent to hit 502 points, down from to 508.9 points in its last session. The broader index EGX100 dropped 1.39 percent as well, recording 1,028 points.

Equities shed around 3.7 billion EGP ($485 million) as market capitalization dropped to 499.9 billion EGP, compared to 503.6 billion EGP Wednesday.

Capital market experts say Egypt’s involvement in the ongoing Arab military campaign led by Saudi Arabia against Yemen’s Houthi rebels triggered more pressure on the market indexes.

“The EGX30 approached the next support level of 9,000 points after penetrating its key support range of 9,250-9,300 points,” Ibrahim El-Nemr, Technical Analysis Desk head at Naeem Brokerage told The Cairo Post.

He added, “A confirmed penetration of 8,950 points may send it lower toward 8,700 points,” and advised traders to wait for another buy signal.

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