CAIRO: The Egyptian Exchange (EGX) indexes rebounded during Wednesday’s early and mid-session trading, powered by Egyptian Financial Supervisory Authority (EFSA) approval of a takeover offer by Sawiris-Beltone alliance to acquire 20 percent stake of EFG-Hermes.
The benchmark index EGX30 rose 0.69 percent to hit at 8,454 points, up from Tuesday’s close at 8,396 points. The small and mid-cap index EGX70 added 0.48 percent to hit 594 points and the broader index EGX100 increased 0.42percent to reach 1,046 points.
Market capitalization added around 1.5 billion EGP ($209.7 million), registering 483.7 billion EGP, down from 482.2 billion EGP yesterday. Turnover amounted to 594.6 million EGP.
Head of Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr attributed the market rise to EFSA’s approval of Beltone offer. Beltone stock jumped 9.85 percent, recording its highest price level at 36.48 EGP by the mid-session.
He expects the resume its downward performance after the benchmark breached below the support level of 8,500 points.
“The benchmark will resume its correction move with a downward tendency,” Nemr told The Cairo Post.
“EGX30 shows negative indicators in the medium term, making it hard for it to penetrate its previous peak at 8,800 points in the short term,” head of technical analysis at Osool Securities Brokerage Ehab Saeed said.
He expects that EGX30 will offset part of its loss before resuming its short-term downward movement or it could perform sideways with a downward tendency.
EGX plunged on Tuesday amid ongoing selling pressures namely by local institutions for three sessions in a row, leading the EGX30 end under the 8,400 barrier at 8,396 points. Market capitalization lost roughly 5.2 billion EGP.