Egypt Shares End Week with EGP16 billion Gains over Takeover Plans

Egypt’s shares ended this week remarkably higher registering gains totalling 16 billion Egyptian pounds backed by major takeover news for EFG-Hermes. The main stock index, EGX30 also soared approaching 8500 points on Thursday.

Beltone Financial and a group of investors including Egyptian billionaire Naguib Sawiris announced early Thursday that they are seeking to acquire a 20 % stake in one of the biggest investment banks in the Middle East, EFG Hermes.

Such as deal to buy a major stake in EFG-Hermes would be seen as a sign of revival in Egypt’s equity market after years of depressed activity since the 2011 revolution.

Beltone Financial as well as the group of investors submitted a voluntary tender offer to market regulator for 20% stake, or 114.7 million shares in the investment bank.

Meanwhile, the EGX indices were booming in green notes during the closing session of Thursday.

Indices

Egypt’s benchmark index EGX30 ended 4.71 per cent higher to 8498.65 pts; while EGX20 finished 5.26 per cent up to 10279.69 pts.     
In addition, the mid- and small-cap index, the EGX70 surged by 3.77 per cent to end at 599.24 pts. The price index EGX100 climbed by 3.82 per cent to conclude at 1047.93 pts.  
Furthermore, the market capitalization recorded EGP 486.599 billion on Thursday.

Turnovers Cross EGP2 Billion
Through the closing session of Thursday, the trading volume has reached 373.393 million securities, with turnovers worth EGP 2.223 billion, exchanged through 37.885 thousand transactions.               
Also during the closing session, 193 listed securities have been traded in; 4 declined, 173 advanced; while 9 kept their previous levels.

Investors’ Activities

Egyptian and non-Arab foreign investors were net buyers capturing 89.47% 5.24% respectively of the total markets, with a net equity of EGP 1.394 million and EGP 30.048 million respectively, excluding the deals.

On the other hand, Arab investors were net sellers seizing 5.29% of the total market, with a net equity of EGP 31.443 million, excluding the deals.