CAIRO: The Egyptian Exchange (EGX) lost ground this week on Investment Minister’s statements about inevitable pound depreciation in the coming period.
Speaking at the Euromoney Egypt conference held in Cairo on Monday, Investment Minister Ashraf Salman said “the pound depreciation is not a choice,” citing global economic recession.
Market capitalization lost around 9.4 billion EGP ($1.2 billion,) to hit 441 billion EGP, compared to 450.4 billion EGP last week.
The benchmark index EGX30 dropped 3.52 percent to end the week at 7,039 points, down from 7,295 points a week earlier.
“The benchmark is projected to focus on its new resistance level near (7,100- 7,150) points,’ said Ehab Saeed, Osool Securities Brokerage technical analysis head.
A confirmed penetration of this area may push the index to re-test it former resistance near 7,300 points, he added.
Also, the small and mid-cap index EGX70 slid 3.23 percent to close the week at 382 points, compared to 394.8 points last week.
The broader index EGX100 also dipped 2.77 percent to close at 823 points, down from 846 points.
Saeed said the EGX70 is expected to target its new resistance 385 points. “A confirmed breach above of the said level may push it towards 400 points,” he predicted.