Egyptian Exchange posts highest weekly decline in 2yrs

The Egyptian Exchange (EGX) was affected by the rising regional geopolitical risks during the week ended 10 May, after the President of the United States decided to withdraw from the Iran nuclear deal.

The benchmark index EGX30 lost 3.8 percent or 677.72 points, recording its biggest weekly decline since July 2016, and closed at the level of 17,155.14.

Traded values reached 4.5 billion pounds, with volumes amounting to 1.04 billion shares.

The market capital decreased by 29.8 billion pounds and ended the week at the level of 991.9 billion pounds.

Commercial International Bank (CIB), the stock with the biggest weigh in the main index, declined by 5.69 percent to 87.78 pounds.

Meanwhile, the small and medium enterprise index EGX70 went down 2.86 percent to 853.5 points, while the broader index EGX100 fell 4.24 percent to 2,192 points.

The equal-weighted EGX50 decreased by 2.16 percent to 2,960 points, with turnovers totalling 3.9 billion pounds.

Arab investors leaned towards buying with a net 482.9 million pounds, while Egyptian and foreign investors were net sellers at 297.2 million pounds and 185.6 million pounds, respectively.

Market analyst Mamdouh Naguib told Mubasher that the main index continued with the correction movement below 18,000 point level, with support being at the level of 17,000 points, after breaking the levels of 17,570 and 17,400, respectively.

On the other hand, resistance levels are between 17,490, and then the 17,900 to 18,000 area.