CAIRO: The Egyptian Exchange (EGX) plunged at the close of Monday’s session as local sell offs weighed on the indexes for a second straight day.
The benchmark index EGX30 posted a 1.62 percent slip to 8,494 points at close, breaching its support level of 8,500 points, and down from 8,634 points at Sunday’s close.
Also, the small and mid-cap index EGX70 tumbled 2.81 percent to end at 475 points, compared to 488.8 points in its last session. The broader index EGX100 dipped 2.18 percent as well, ending at 962.7 points.
Market capitalization shed around 9.2 billion EGP ($1.2 billion,) totaling 496.3 billion EGP, lower than 505.5 billion EGP Sunday.
“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 Friday.
Meanwhile, Saeed had predicted that the market would resume its downward movement early in 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.