The Egyptian stock exchange has dropped to its lowest level in three months, with EGX30 falling 10 percent this week alone, shedding LE38 billion in a week.
Once again, aggressive selling pressures hit the Egyptian stock market Thursday’s session driven by Egyptian retail investors and local institutions selling activities.
The market negative performance was reflected on the EGX30 index that broke the support level at 8,800 points, making a significant decline of 3.3 percent to record 8,593.51 points at a relatively high total turnover of LE820 million. Sigma Securities Brokerage said in a report on Thursday.
Egyptian retail investors and local institutions selling activities reached LE37.04 million and LE36.87 million respectively especially on big caps. Meanwhile, foreign institutions were net buyers at LE41.63, according to Egyptian Exchange data.
The EGX30 fell 10 percent this week following a slowdown in global markets as per recent IMF projections of a global economic slowdown.
Thus, the market capitalization incurred heavy losses this week worth LE38 billion ($5.4 billion), registering at LE510.2 billion at the end of the week compared to LE524.7 billion last Thursday.
"The short term trend is down and any rebounding in the market will represent a good selling pressure until any signal of strength is clear," said Blom Egypt Securities in a report.
"Our levels now are 8,980 acting as resistance and 8,750 serving as support," it added.
