By Ahmed Allam:
Cairo-Mubasher: The Egyptian Exchange (EGX) indices have plummeted on Wednesday, as benchmark index EGX30 reversed its direction to offset early gains, ending 4.59% at 8124.68 points; a level not seen since June 29.
The benchmark opened the session with a slight rise but then slumped to end with a loss of as much as 390 points, as it was pressured by the fall in oil prices, said Ahmed Abdel Hamid, managing director, Watheeqa Securities Brokerage.
Thus, the market erased the gains seen in the second half of 2014, the analyst noted.
Brent crude oil fell below $59 a barrel on Wednesday, near 5-1/2-year lows, as major oil producers signaled that they would maintain output despite a supply glut and faltering demand in Russia and Europe, according to Reuters.
EGX70, which measures small and mid-cap stocks, also fell 4.09% to close at 531.83 points, while the broader index EGX100 ended 3.77% lower at 1007.41 points.
Moamen El Shayyal, head of technical analysis, Al Jazira Securities Brokerage, said the benchmark crossed the low limit of the upward price channel to set a price target near the 7700-7800 area.
“EGX30 is currently testing a key support level near 8200-8150 area, from which it will likely rebound in a short-term upwards corrective movement,” said the analyst.
Market capitalization lost around EGP 15.32 billion (above $2.14 billion) to reach EGP 464.816 billion.
El Shayyal advised traders to sell in rises and not to build new positions before seeing clear buy signals.
Wednesday’s traded volume amounted to 268 million shares, exchanged at a total value of EGP 964 million.
Foreign investors were net sellers by EGP 30.4 million, while nationals and Arabs ended as net buyers by EGP 24.8 million and EGP 5.6 million respectively.
Institutions, especially locals and foreigners were net sellers, while retail traders, especially nationals, were net buyers.
The market’s heaviest weight CIB was the top active with turnover exceeding EGP 124 million. Meanwhile, OTMT was the most active with a traded volume of more than 104 million shares.
Translated by Sayed Abdel Rahman
Photo Credit: Arabianeye-Reuters
Cairo-Mubasher: The Egyptian Exchange (EGX) indices have plummeted on Wednesday, as benchmark index EGX30 reversed its direction to offset early gains, ending 4.59% at 8124.68 points; a level not seen since June 29.
The benchmark opened the session with a slight rise but then slumped to end with a loss of as much as 390 points, as it was pressured by the fall in oil prices, said Ahmed Abdel Hamid, managing director, Watheeqa Securities Brokerage.
Thus, the market erased the gains seen in the second half of 2014, the analyst noted.
Brent crude oil fell below $59 a barrel on Wednesday, near 5-1/2-year lows, as major oil producers signaled that they would maintain output despite a supply glut and faltering demand in Russia and Europe, according to Reuters.
EGX70, which measures small and mid-cap stocks, also fell 4.09% to close at 531.83 points, while the broader index EGX100 ended 3.77% lower at 1007.41 points.
Moamen El Shayyal, head of technical analysis, Al Jazira Securities Brokerage, said the benchmark crossed the low limit of the upward price channel to set a price target near the 7700-7800 area.
“EGX30 is currently testing a key support level near 8200-8150 area, from which it will likely rebound in a short-term upwards corrective movement,” said the analyst.
Market capitalization lost around EGP 15.32 billion (above $2.14 billion) to reach EGP 464.816 billion.
El Shayyal advised traders to sell in rises and not to build new positions before seeing clear buy signals.
Wednesday’s traded volume amounted to 268 million shares, exchanged at a total value of EGP 964 million.
Foreign investors were net sellers by EGP 30.4 million, while nationals and Arabs ended as net buyers by EGP 24.8 million and EGP 5.6 million respectively.
Institutions, especially locals and foreigners were net sellers, while retail traders, especially nationals, were net buyers.
The market’s heaviest weight CIB was the top active with turnover exceeding EGP 124 million. Meanwhile, OTMT was the most active with a traded volume of more than 104 million shares.
Translated by Sayed Abdel Rahman
Photo Credit: Arabianeye-Reuters
Source:
Mubasher Exclusive
