Technical analysts predicted that the Egyptian Exchange (EGX) will decline during Sunday trading to range between 7,650 to 7,600 points, affected by the failure of the Orascom Telecom Media and Technology Holding’s (OTMT) investment arm, Beltone, to complete the CI Capital acquisition deal.
The EGX will likely decrease from 7,756 points to 7,600 points after the failure of the Beltone-CI Capital acquisition deal, said Mohamed Al-Assar, head of the technical analysis department at the National Bank of Kuwait (NBK) for investment in North Africa and the Middle East.
He added that EGX 30 broke the main resistance level of 7,650 points last week, which the market failed to break throughout the last month.
He predicted that Beltone will stay around its current level at EGP 11.5 per share, as well as the Commercial International Bank (CIB) at EGP 44 per share. OTMT’s shares will likely decline from 70 pts to 69 pts per share.
Head of Technical Analysis Department at Osool for Stock Brokerage Ihab Said upheld this prediction, expecting a decline in the EGX to record 7,650 points on Sunday.
He added that the effect of the failed Beltone-CI Capital acquisition deal will last until Monday because all investors were following that deal attentively.
Said predicted that the CIB will close at EGP 43 per share, down from EGP 44.39.
EGX 30 index increased last week by 1.82% to close at 7,756 points, while the small- and medium-sized enterprises (SME) index, EGX 70, fell by 0.31% to close at 373 points.
The value of total shares traded during last week reached about EGP 3.6bn. The number of shares traded reached 752m shares through 80,000 trading operations, compared to a total trading value of EGP 4.9bn during the week before last, through 89,000 trading operations involving 806m shares.