Cairo – Mubasher: The benchmark index of the Egyptian Exchange (EGX) suffered a sharp drop in the week ended Thursday, 16 February 2017, following strong pressures from Egyptian investors’ selling, registering its highest weekly decline since 1 July 2016.
The EGX30 index plunged 3.53% or 462.89 points and closed the week at 12,651.91 points.
Turnover reached EGP 3.96 billion over the five-session week after 852.5 million shares changed hands.
Market capitalisation fell EGP 19 billion to end the week at EGP 615.3 billion compared to last week’s EGP 634.3 billion.
Commenting on the EGX weekly performance, head of technical analysis at Roots Securities Brokerage Sameh Gharib noted that the EGX30 extended its fall towards 12,300 points, where buying activity commenced to halt the decline and prompt a correctional rebound towards 12,650 points.
The rebound may extend to 12,800 and 13,000 points, he added.
Meanwhile, the EGX70 index shed 2.26% to reach 512.01 points by the end of Thursday.
Commenting on the EGX70’s performance, Gharib noted that the index suffered profit-taking on several of its shares, adding that he expects the index to rebound next week towards the levels of 520 points and resistance at 530 points in extension.
The EGX100 and EGX50 indices dropped 3.08% and 1.89% this week to 1,220.19 points and 1,957.58 points, respectively.
EGX heavyweight Commercial International Bank – Egypt’s (CIB) stock retreated 4.39% this week to EGP 76.7 per share. Turnover on the stock reached EGP 454.3 million over the week.
Egyptian investors were sellers netting EGP 250 million, while foreign and Arab investors recorded net purchases of EGP 209 million and EGP 41 million, respectively.
Retail investors’ selling netted EGP 93.8 million against purchases by institutions.
