By: Heba El-Kordy
Cairo – Mubasher: The Egyptian Exchange (EGX) ended the week on Thursday, 7 December in the red zone amid Egyptian investors’ selling.
The benchmark EGX30 index dropped 1.97% or 287.49 points, reaching 14,294.73 points.
The EGX saw trading of 924.7 million shares, with a liquidity of EGP 3.7 billion.
Market capitalisation dropped EGP 25.4 billion on a weekly basis, closing at EGP 788.7 billion, compared to EGP 814.1 billion.
The Commercial International Bank’s (CIB) stock went down shed 3.48% to EGP 72.72, after 6.9 million shares were exchanged, generating with EGP 515.8 million.
The EGX70 index tumbled 3.51%, reaching 767.55 points, registering its sharpest declines in seven weeks, and the EGX100 index slipped 2.23% to 1,810.81 points.
The equal-weighted EGX50 index decreased 1.46%, reaching 2,486.29 points.
Egyptian traders were net sellers with EGP 304.4 million, while Foreign and Arab traders were net purchasers with EGP 184.7 million, and EGP 119.7 million, respectively.
The EGX saw profit taking during the current week after it reached 14,600 points, Branch manager in Osool ESB Saeed Alfeky said.
The EGX’s benchmark index is ordinary to see profit taking after it hit very high level on Sunday, to reach an important support level at 14,360 points, to form buying powers in these zones, and continue rising, Alfeky added.
After the US president, Donald Trump announced Jerusalem as Israel’s capital, this led to an increase in profit taking, and the main index broke its support level at 14,360, the branch manager in one of Osool ESB’s branches stated.
Alfeky forecasted that the EGX30 will reach near its support level again, noting that if the index remained above that, it will lead to an end of profit talking, to rise, aiming 14,800 points.
If the index broke this level, it will aim 14,100 points, and after that 14,000 points.
The EGX is seeing profit taking before returning to grow, and achieving new levels in prices, Sameh Gharib, head of technical research at Roots Stock Brokerage House said.
The EGX30 is trying to remain stable, and to rebound higher than its support level at 14,200 points.
If the EGX30 succeeded in that, it will reach to a secondary resistance level at 14,500 points, and after that 14,726 points.
Gharib forecasted that the EGX70 will try to remain above 760 points, and if that occured, it will be pushed to the resistance level at 790 points, and after that the resistance level at 805 points.
Translated by: Mohamed Hesham Azab
