Cairo – Mubasher: Ezz Steel said on Sunday that the consecutive rises of the stock may be in line with the ones achieved by most of the shares on the Egyptian Exchange (EGX), after the Egyptian pound floatation decision on 3 November.
The company responded on inquiries from the EGX about the stock's hikes during the period between 21 November and 12 December, 2016, saying that there are no unannounced key incidents that might have had an impact on the stock performance.
The stock increased 25% during the aforementioned period, opening at EGP 9.88 to close at EGP 12.33.
The steel supplier announced earlier that consolidated losses narrowed 57.7% year-on-year to EGP 127.9 million in the third quarter.
Prime Research raised the fair value (FV) of Ezz Steel to EGP 20.89, assign a ‘Buy’ recommendation on the stock, according to a report.
The stock quote is likely to increase by 60%, said the research firm, advising traders to build positions in the long run.
Raising the fair value was driven by a number of factors including the local currency flotation, the liberalization of steel prices, and the improvement of gas supplies, the research firm revealed.
