By: Heba El Kordi
Cairo – Mubasher: Egyptian Exchange (EGX) indices were in the red during Monday’s mid-session, pressured by foreign investors’ sales, which prompted the bourse to lose over 300 points.
By 12:33 pm Cairo time, the benchmark EGX30 index slid 2.25% or 309.96 points to 13,595.83 points, it lowest level since 18 September.
As for the EGX’s heavyweight Commercial International Bank – Egypt (CIB), the stock retreated 2.92% to EGP 75.69, logging a turnover of EGP 131.2 million.
The EGX’s sharp decline is “unjustified” and is not related to any particular or market-moving political or economic event, said technical analyst at Pioneers Mohamed Gaballah.
Foreign institutions are selling because of the temporary correction pertaining to the market trend, the analyst said, forecasting that this correction will end on the short-term.
The EGX’s main resistance is currently at 13,500 points, Gaballah noted, but excluded that the index would fall below this level today.
In the meantime, the EGX70 index lost 1.28% to 810.34 points, while the EGX 100 and EGX50 indices were down 1.55% and 1.84% to 1,790.9 points and 2,366 points, respectively.
Mohamed El Naggar, head of research at El Marwa for Securities and Brokerage, concurred with Gaballah saying that Monday’s sudden drop was unjustified and not likely to continue for long.
Monday’s pressure is mainly from blue chips CIB and Ezz Steel, the analyst indicated, forecasting that the EGX30 index will rebound at around 13,560 and 13,580 points.
Translated by: Nada Adel Sobhi
