EGX loses ground at close, slipping 1.12%
The Egyptian stock exchange - AFP/Khaled Desouki

CAIRO: The Egyptian Exchange (EGX) lost ground at the close of Sunday’s session, battered by a strong selling spree led by local retailers and institutions.

The benchmark index EGX30 slipped 1.12 percent toward 8,634 points at close, down from 8,731 points Thursday.

Also, the small and mid-cap index EGX70 retreated 0.46 percent to end at 488.8 points, compared to 491 points in its last session. The broader index EGX100 lost 0.51 percent as well, ending at 989.2 points.

Market capitalization shed around 1.7 billion EGP ($222.9 million,) totaling 505.5 billion EGP, lower than 507.2 billion EGP Thursday.

“The bearish sentiment was initially driven by the government’s approval of capital-market taxes earlier in April, shrugging off traders’ repeated calls for discarding or suspending it for three years, until the economy recovers,” Osool Securities Brokerage technical analysis head Ehab Saeed told The Cairo Post.

Egypt’s market was pushed Thursday and its benchmark posted a 1.18 percent hike, as Cairo received $6 billion in deposits as part of Gulf aid pledged during the economic summit held in Sharm el-Sheikh last month.

However, Saeed had predicted that the market would resume its downward movement early this week to approach its former support near 8,500 points. “Sustaining above this level would push the index to re-test its resistance level of 9,600 points at least,” predicted the analyst.

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