Cairo-Mubasher: The indices of the Egyptian Exchange (EGX) posted a negative performance in the week ended 16 June.
EGX30 index fell by 4.3% or 335.9 points to reach 7,420.4 points this week; the lowest level in 14 weeks since 11 March, 2016.
EGX70 retreated by 3.5% to end the week at 360.3 points, while EGX100 dropped 3.2% or 25.4 points to 766.5 points.
EGX50 index was down 4.9% or 70 points to 1,341.6 points.
The market cap lost EGP 1 billion over the week to reach EGP 399.1 billion as compared to EGP 409.3 billion a week ago.
Local investors acquired 82.4% of EGX’s overall transactions, while both foreign and Arab traders obtained 13% and 4.5% respectively of the deals.
Selling pressures appeared in Monday’s session due the failure of completing the acquisition of CI Capital; the stocks involved in the deal, including CIB and Orascom Telecom, were negatively affected, said head of technical analysis at Arabeya Online brokerage Ahmed Khalid.
EGX’s benchmark index broke the levels 7,600 and 7,500 points, however, it is still at key support levels at 7,325 and 7,400 points, the analyst noted.
The market’s performance in the coming week is linked to the central bank’s decision about the interest rates, the analyst said.
Ahmed Khalid expected the index to reach below the support levels in case of raising the rates. However, the market will await catalysts to hold and rise in case the rates are kept unchanged.
