CAIRO: The Egyptian Exchange (EGX) indexes rebounded Wednesday, getting a boost from Egyptian Financial Supervisory Authority (EFSA) approval of a takeover offer by Sawiris-Beltone alliance to acquire a 20 percent stake of EFG-Hermes.
The benchmark index EGX30 rose 0.51 percent to hit 8,440 points, up from Tuesday’s close at 8,396 points. The small and mid-cap index EGX70 added 0.51 percent to hit 594 points and the broader index EGX100 increased 0.38 percent to reach 1,044 points.
Market capitalization added around 1.8 billion EGP ($251.6 million), registering 484 billion EGP, down from 482.2 billion EGP yesterday. Turnover amounted to 1 billion EGP.
Walid Helal, technical analyst at El-Mokattam Securities Brokerage and member of the Egyptian Society of Technical Analysts (ESTA) attributed the market rise to EFSA’s nod of Beltone offer.
“This approval had a positive impact on the market performance, pushing all indexes up,” Helal told The Cairo Post. Beltone stock jumped 9.85 percent, recording its highest price level at 36.48 EGP by the mid-session.
The benchmark plunged to very low levels, losing 400 points within three successive sessions, said the analyst, adding that he expects significant resistance while approaching 8,500, then 8,620 barriers.
The Head of Technical Analysis Desk at Naeem Brokerage Ibrahim El-Nemr said he expects the benchmark will resume correction move with a downward tendency after its slump below the support level of 8,500 points.