CAIRO: The Egyptian Exchange (EGX) resumed its steep slip at the close of Monday’s session, as the benchmark index EGX30 lost 1.16 percent over intensive sell-offs from local and foreign institutions.
The benchmark dropped to 8,508 points at close, compared to 8,607 points Sunday. Also, the small and mid-cap index EGX70 slipped 1.4 percent to end at 483 points, down from 489.9 points in its last session. The broader index EGX100 lost 1.17 percent, recording 985 points.
Chief technical analyst at Helwan Securities, Ahmed Abdel Rahman, said the benchmark may extend its slip toward the strong support level of 8,470 points.
EGX indexes plummeted on Sunday, as sell-offs from local institutions and retailers pushed the benchmark index EGX30 to the biggest single-day fall since mid-December, 2014, with a 3.19 percent dip.
“Traders are recommended to buy near the mentioned support level which may hinder any further decline,” said the analyst.
Egypt’s market rode a violent downward movement over the past three weeks, shrugging off positive incentives from the Egypt Economic Development Conference held in Sharm al-Sheikh March 13-15, which resulted in anticipated investments of $72.5 billion.
Osool Securities Brokerage Technical Analysis Head Ehab Saeed attributed the market’s plunge mainly to traders’ anger over the government’s insistence on imposing a capital gains tax on stock market profits and dividends approved in July.
The market is still waiting for the issue of the bylaws of this tax system.