Cairo – Mubasher: The Egyptian Exchange (EGX) is likely to see a positive performance on Wednesday as Madinet Nasr Housing and Development announced plans to merge with or acquire Sixth of October for Development and Investment (SODIC).
The EGX is expected to move upwardly and hover around 18,000 points in the short term, technical analyst at Pioneers Holding Mohamed Gaballah told Mubasher.
The benchmark EGX30 index may target 18,200 and 18,250 points if it breaks above 18,000 points, Gaballah said, pointing out that the index has support at 17,400 points.
Regarding Madinet Nasr Housing-SODIC deal, the analyst remarked that it is a positive deal, which will positively impact the securities market, mainly the real estate sector.
For his part, head of technical analysis at Beltone Financial Holding Mohab Agena said that the EGX30 index is moving between 17,750 and 17,300 points.
The EGX is projected to see an upward trend on Wednesday, backed by the impact of Madinet Nasr Housing-SODIC deal on the real estate sector, Agena added.
SODIC’s stock is hovering around EGP 32 per share, while Madinet Nasr Housing’s stock is targeting EGP 15 per share, he noted.
On Tuesday, Madinet Nasr Housing announced it was considering merging with or acquiring SODIC.
