By: Heba El Kordi
Cairo – Mubasher: The Egyptian Exchange (EGX) suffered a sharp drop during Thursday’s trades, pressured by profit-taking on its blue chips, which prompted the benchmark EGX30 to plunge by as much as 1.82% or 330.73 points to 17,842 points by 1:25 pm Cairo time.
In the meantime, most of the EGX’s leading stocks were in the red, led by Egyptian Resorts Co, which fell 4.7%, followed closely by Qalaa Holding, which retreated 4.49%.
Only two blue chips rose, namely GB Auto and Hadisolb, adding 3.56% and 0.12%, respectively.
The EGX is undergoing a strong correction after the sharp gains it enjoyed in the previous period, commented Mohamed El Naggar, head of research at El Marwa for Securities & Brokerage.
Thursday’s decline is mainly due to pressure from blue chips, particularly Commercial International Bank – Egypt (CIB) and Eastern Co, he added.
The analyst forecast that the EGX would be able to hold and head towards its historic target at 19,000 points next week.
Regarding CIB’s stock, El Naggar told Mubasher that the EGX’s heaviest weighted stock was likely to target EGP 100 then EGP 105 in the coming period. This will happen once CIB’s stock breaks above EGP 95 once more, a level it had achieved earlier this week, he added.
In the meantime, CIB’s stock dropped 1.93% to EGP 93.10, following a turnover of EGP 75.4 million, while Eastern Co’s stock retreated 2.41% to EGP 200, generating EGP 7.8 million.
Translated by: Nada Adel Sobhi
