Cairo – Mubasher: EGX performance is likely to be negatively affected by EFSA decision on the acquisition bid made by Beltone Financial Holding for CIB's investment banking arm CI Capital, said analysts.
Yesterday, the Egyptian Financial Supervisory Authority (EFSA) justified delaying the acquisition bid anew as a result of violations related to commitments made by Naguib Sawiris, the major shareholder in Orascom Telecom Media and Technology (OTMT) following the split-up in 2012.
Hence, Hanan Ramses, CEO of Cairo Securities, expected the consequences of this delay to be negative on EGX today, namely investors and brokerages will be fuddled after repetitively suspending trading on Beltone Financial.
Moreover, most stocks linked to the deal, including CIB, Beltone Financial, and OTMT, are likely to see a decline on Thursday, Hanan added.
As the acquisition bid is a changing hand between two blue-chip stocks, both Ehab Rashad, CEO of Mubasher for Securities, and Ahmed Abdel-Hamid, Managing Director of Watheeqa Securities, anticipate Cairo bourse to incur an extraordinary instability today, for either to remove violations or cancel the bid is the expected final decision.
Yesterday, the benchmark rebounded from a three-session decline to end 1.22% higher to 7,420.61 points.
