CAIRO: The Egyptian Exchange (EGX) indexes surged during Thursday’s mid-session powered by a takeover offer by Beltone Financial along with a group of investors to buy a 20 percent stake in EFG-Hermes.
The benchmark index EGX30 jumped 3.89 percent to reach 8,432 points, up from than Wednesday’s close at 8,116 points. The small and mid-cap index EGX70 went up 2.26 percent to hit 590 points and the broader index EGX100 added 2.52 percent to reach 1,034 points.
The rally started Wednesday boosted by local purchases after the landslide victory of Abdel Fatah al-Sisi, who was announced as the president-elect Tuesday.
Market capitalization gained around 10.9 billion EGP to record 4781.3 billion EGP, compared to 470.4 billion EGP Wednesday. Turnover reached 1.3 billion EGP.
Ehab Saeed, head of technical analysis at Osool ESB Brokerage, said the market rallied over Beltone’s and Hermes deal, coupled with the call by Saudi King Abdullah bin Abdulaziz Al Saud for a donor conference to help boost the Egyptian economy, in addition to the blue chip Global Telecom positive financial results.
In a congratulatory cable to Sisi, published by Saudi State-owned news agency SPA, the king said “I call upon all of Egypt’s brothers and friends to organize a donor conference to assist that country to overcome its economic crisis.”
The analyst said the market would probably resume its downward correction if the benchmark fails to stay above 8,400 points for two sessions in a row.
Beltone stock soared 9.87 percent to 26.63 EGP, while EFG climbed 7.10 percent to 14.48 EGP, Saeed added.