The Egyptian Exchange (EGX) indices are expected to show sideways movement on Thursday amid the current struggle between selling and purchasing power near the resistance level of 8,750 points, a technical analyst told Mubasher.

Investors will likely be jittery due to the government’s delay in responding to their concerns over a capital gains tax, said Mona Mostafa, a technical analyst at African Group brokerage.

Egypt’s finance ministry has pledged to amend a law imposing a 10% capital gains tax, after traders filed a lawsuit on the grounds that the law is vague and keeping away investors. But the issue remains unresolved.

"The benchmark index EGX30 will gain support at the levels of 8,677 and 8,560 points, while it will face resistance at the levels of 8,890 and 8,930 points," said Mostafa.   

The EGX’s market capitalisation shed nearly EGP 1.1 billion ($144 million) on Wednesday on a selling spree from local institutions.

The benchmark index EGX30 shifted into the red zone in late trades, losing 0.82% or 72 points to close at 8,756.31 points.