After the announcement of the holding company for chemical industries, the main shareholder of Eastern Smokehouse By 50.95%, on Tuesday, receiving offers to acquire up to 30% of its ownership stake of the monopoly company for the smoke industry in Egypt, the company's share rose by 19.85%, amid differing opinions of a number of capital market experts on the feasibility of the acquisition and its impact on state revenues.
Omar Hussein, a capital markets expert, said that the eastern smoke company executed the largest trading volume in 75 days during today's trading session, approaching 3.5 million shares,and also executed the highest price during the session, approaching 20.5 pounds, which is the highest in 45 days, while the closing price recorded 19.85 pounds.
Hussein added to" Al Masry Al Youm " that the government's exit from the eastern smoke company at a fair share price will positively support the company's position, as the role of governments is usually regulatory and not investment.
He continued: The Stock Exchange witnessed a recovery with the start of Beltone's subscription to increase the capital by 10 billion pounds, as the company's capital increase subscription worked to attract liquidity from outside the money market, and this liquidity was recently transferred between the stock exchange shares in light of the decrease in trading volume on the share, which was in favor of other shares, as Shares.
The money market expert advised investors to reduce their purchase debits by margin, and it is preferable to make profits by reducing debits in order to mitigate the high risk and large cost to the shareholder, in light of high interest rates.
It is noteworthy that Hani Aman, CEO and managing director of eastern company, said in press statements that the real price of a pack of Cleopatra cigarettes is 7 pounds inside the company, before adding taxes and health insurance fees.
Exploiting the downward movements in the eastern shares of smoke for purchase purposes
Mustafa Raafat, a money market expert, said that the shares of Eastern Smokehouse He recorded the highest level since the listing at 21.70 pounds, to close today at 19.80 pounds, expecting the stock to exceed in the medium term, its highest historical peak, explaining that if the stock continues to rise to record the top of 19 pounds, he is eligible to reach the levels of 22 pounds as the first target and 27 pounds as the second target, advising to exploit the decline for buying purposes.
The eastern smoke company revealed the fact of receiving offers to acquire a minority stake in the company.
Read more: Offers to acquire 30% of eastern smoke shares on the stock exchange
Ihab Saeed, economist and board member explained Stock Exchange Previously, the company Eastern Smokehouse Eastern company is one of the largest revenue-generating companies for the state and the public business sector, and it is natural that it will attract the attention of investors, explaining that with the exit of the state at any percentage, its management will change to become a private sector.
Source : Egypt Today
