Dubai: Egypt’s main stock index extended losses on Tuesday, after falling nearly 8 per cent since the start of the month, even as analysts warned of further sharper declines in coming weeks.
The market has been hit by foreign exchange and energy shortages, bloody clashes with militants in the Sinai region, and a central bank decision to let the Egyptian pound resume depreciating.
The Egyptian index has been on an uptrend since March 2011, when the index was at 3,500, and hit the level of 10,000 in March 2015.
“So the market must start a correction. Egyptian index may fall further and hit support level of 7,278,” said Osama Al Ashri, member of British organisation, the Society of Technical Analysts. Sharp cuts are required before the index recovers again.
