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Market indices dip as political instability continues

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The index started the day at 5.688 down one point from Sunday; it rose to 5.702 points before starting the downward trend to close the day at 5.608 points, failing to stay above the 5.700 points level.

The violent clashes that took place on Sunday in the streets of Cairo, Port-Said, Suez and other cities, leading president Morsy to declare a state of emergency in the canal governorates, were reflected in the oscillating performance of the stock market.

EGX30, the benchmark index of the stock market, rose slightly at the beginning of Monday’s session, before reversing the trend and falling.

The index started the day at 5.688 down one point from Sunday; it rose to 5.702 points before starting the downward trend to close the day at 5.608 points, failing to stay above the 5.700 points level.

The broader indices EGX70 and EGX 100 also turned red and reached 457 points and 782 points losing 2.15 % 1.84 % of their respective values.

Ihab Saeed, director of the technical analysis division of Osool Securities Brokerage ESB, said: “The downtrend is normal in the light of the current events, and the slight decrease in the beginning of the session is in continuance of the corrective movement that started yesterday.

“The transaction amounts were at EGP 300m, 20% of them are held by foreigners.”

Saeed expected EGX 30 to continue falling in Tuesday’s session until reaching the 5550 points support level if the situation doesn’t deteriorate, otherwise it could go lower.

Mohamed Saad, lead analyst with Naeem Holding, said: “The market is oscillating, it fell by 1.5% today, while it performed well yesterday against expectations. It started in green and then lost all the gain it achieved yesterday.

“The problem of Orascom Construction Industries (OCI) contributed to the confusion of the market, the meeting between OCI officials and the tax authority was delayed to an unspecified date.”

Saad refused to predict the movement of the market in the coming period.

Among the 166 listed companies who traded on Monday, 18 achieved gains, 120 suffered losses, while 28 remain unchanged. Among the top gainers were Nozha International Hospital rising by 2.57%, El Ezz Eldekhela Steel-Alexandria by 2.33% and Egyptian Arabian (Cmar) Securities Brokerage EAC by 1.89%. The most significant declining shares were International Co for Investment & Development dropping by 9.24% while National Housing for Professional Syndicates fell by 7.97%.


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