Cairo- Mubasher: The Egyptian Exchange (EGX) indices witnessed a negative performance in June 2016.
The benchmark EGX30 slid7.2%, or 541 points, to closeat 6942.5 points, recording the lowest monthly closing since February, pressured by the Egyptian investors’ sales.
The small and mid-cap index EGX70 retreated 6.1% to reach 351.03 points, while the broader EGX100decreased 5.1% at 743.7 points.The equal-weighted EGX50 index dropped 8.9% reaching 1,259.9 points.
“The performance of the benchmark index was very negative in June, losing alot of realised earningsduring the last period. It drew back to its lowest levels since March,” said Sameh Gharib, financial analyst at Roots Securities Brokerage.
The analyst added that theEGX70 levelled down several support levels reaching 337 points. By passing the level of358 points, the index shifted its sideways movement to a short fall movement. It is trying to go back to the short correction movement that may push it towards the resistance level at 358 points, Gharib noted.
Market capitalisation decreased 4% during the month to EGP 17.9 billion to close at EGP 382.55 billion.
The market was powered by Egyptians selling their stocks and netting EGP 612.04 million, while the foreign and Arab investors’ purchases netted EGP 595.4 million and EGP 41.3 million, respectively.
The individual investors and institutions also inclined to purchasing during June. Egyptians accounted for 81.4% of the transactions, while 14.5%were forforeigners and 4% for Arabs.
Total turnover during June reached EGP 13.9 billion as 3.106 million securities were traded through 329,000 transactions, compared to EGP 26.6 billion with 3.952 million securities traded through 424,000 transactions in May.
During the second quarter, the benchmark index plunged 7.7% to 6,943 points. The EGX70 also recorded a decline by 4.42% closing at 351 points and EGX100 retreated 6.12% to 744 points.
Trading value reached EGP 60.6 billion after 12.426 billion shares were traded over 1,261 transactions in Q2-16, compared to EGP 67.9 billion with 17.813 billion shares changing hands through1,592 transactions in the preceding three months.
Market capitalisation also lost 6.1%, or EGP 24.9 billion, to close at EGP 382.6 billion during Q2-16.
