CAIRO: Late selling put pressure on Orascom Construction Industries (OCI), wiping out most of its early gains on Egypt’s benchmark index, which closed 0.2 percent lower.
The stock extended losses for the second day, falling 2.8 percent to LE 254. It had traded as high as LE 264.5.
“The session began on a positive note influenced by US and European markets, said Sally Refaat of Cairo Capital Securities. “But big selling pressure on OCI dragged the market.
Traders said the stock fell on a sell order from a single international investor.
Orascom Construction was the session’s heaviest traded stock by turnover and the heaviest negative weight on the index.
“If selling pressure on OCI continues tomorrow, it will easily fall to LE 248. But if the trend is reversed, the stock can rebound to LE 265, Refaat added.
The EGX 30 index has gone above 7,000 level in intra-day trade twice this week, but fell to 6,934 points by the close.
“The 7,000 level is a selling pressure … because people are looking to book profits, Refaat said, adding the index will likely trade in a 6,900 to 7,200 range with a resistance level at 7,250-7,300 points. -Reuters