Cairo – Mubasher: The Egyptian Exchange's (EGX) benchmark index EGX30 plunged 4.3% or 310.8 points in the week ended 29 June, closing at 6,942.5 points, its lowest level in 16 weeks or since 11 March.
Selling dominated this week's trades on the EGX, that were deepened by the UK's referendum to exit the European Union (EU), said Hesham Hassan, head of technical analysis at Acumen Securities.
The level of 7,300 points was considered a stop-loss level on the short term, however the index fell below that level and broke support at 7,100 points, he added, describing the session in which the EGX dropped by 5% as a terrible one.
EGX indices retreated collectively by the end of Sunday's session, with the benchmark index sliding 5.54% on the back of the Brexit vote.
The EGX30 is currently moving between the support level of 6,750 points and resistance at 7,100 points, Hassan pointed out.
He told Mubasher that avoiding any losses next week will be considered a gain for the market, especially since next week will see trading throughout three sessions only ahead of the Eid Al-Fitr holidays.
He added that he does not expect to see any major gains next week, especially if trading remains below EGP 500 million.
Egyptian and Arab investor buying netted EGP 37.058 million and EGP 21.4 million, respectively this week, whereas foreigner selling netted EGP 58.5 million. Institutional selling and retail purchases netted EGP 63 million each.
Egyptians accounted for 81.6% of the week's trades, while Arab and foreign investors made up 6% and 12.4%, respectively of trades.
The EGX70 index gained 0.86% to close at 351.03 points this week, while EGX100 and EGX50 indices lost 0.42% and 2% to 743.7 points and 1259.9 points, respectively.
The Egyptian bourse's market capitalisation dropped by EGP 10 billion by the end of the week to EGP 382.6 billion, from EGP 392.7 billion by the end of last week.
The EGX is closed on Thursday on the occasion of the 30 June Revolution, a statement by the EGX said on Wednesday.
