ICEC

Egyptian exchange records 3rd weekly losses in July

The Egyptian Exchange (EGX) declined for the third week in a row, pressured by the suspension of Qalaa Holdings and the absence of market stimulus.

The benchmark index EGX30 lost 2.9 percent and closed the week at the level of 15,416.31 points.

The small and medium enterprise index EGX70 fell 2.9 percent and ended the week at 752.60 points, while the broader index EGX100 dropped 3.1 percent and settled at the level of 1,927.29 points.

Meanwhile, the equal-weighted index EGX50 decreased by 2.6 percent as it ended the week’s trade at 2,636.26 points.

The market capital closed at 867 billion pounds, 22.9 billion pounds lower than its level by the end of last week.

Breaking the support level of 15,500 points is a negative sign on the medium run, with next support at 15,200 points, according to analyst Saied El-Fekki of Osool.

After reaching historic levels near 18,500 points in the first quarter of the year, strong pressures from profit making, alongside the rising interest rates by the US Federal Reserve and trade ward fears are surely affecting the market, El-Fekki explained, adding that the absence of new incentives or investments are also major factors in the recent declines seen by the main index.

The upcoming period is set to witness horizontal movements, until new incentives are seen by the market, he further added.

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