EGX bullish this week, benchmark up 2.5% on Beltone takeover bid
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: The Egyptian Exchange (EGX) rallied this week over leading stocks’ positive performance driven by an investor upbeat sentiment about Beltone Financial takeover deal.

Egypt’s market was pushed up early on Thursday after Orascom Telecom Media and Technology (OTMT) and Act Financial announced plans to buy Beltone Financial in return for 650 million EGP ($83 million.)

Orascom shares ended 7.14 percent up, and Beltone soared 19.72 percent.

During the course of the week, market capitalization gained around 5.3 billion EGP ($677.7 million,) to hit 452.5 billion EGP, compared to 447.2 billion EGP last week.

The benchmark index EGX30 jumped 2.48 percent to end the week at 7,495 points.

“The benchmark is projected to focus on its resistance level near 7,500 points,’” said Ehab Saeed, Osool Securities Brokerage technical analysis head.

A confirmed penetration of this area may push the index toward 7,700 points as a first target, he added.

Similarly, the small and mid-cap index EGX70 hiked 2.8 percent to close the week at 389.5 points, and the broader index EGX100 also added 1.58 percent to close at 852.4 points.

Saeed said the EGX70 is expected to target its former resistance near 400 points.

“A confirmed breach above of the said level may push it towards 425 points,” he predicted.

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