Cairo – Mubasher: Amid market volatility due to concerns over a second wave of coronavirus (COVID-19) infections, pharmaceutical stocks on the Egyptian Exchange (EGX) reported strong performance ahead of potential mergers and acquisitions.
Amr El-Alfy, Head of Research at Prime Holding for Financial Investments, said that pharmaceutical stocks led the benchmark EGX30 index during the last period.
Over the last three months, Kahira Pharmaceuticals jumped by 32%, while Alexandria Co. for Pharmaceuticals and Chemical Industries and Glaxo SmithKline (GSK Egypt) advanced by 23% and 22%, respectively.
During the same period, the EGX30 index rose by 8.7%.
At the end of Monday’s trading session, Kahira Pharmaceuticals, Alexandria Co. for Pharmaceuticals and Chemical Industries, and GSK Egypt added 4.7%, 3%, and 1.2%, in that order, following news reports about potential mergers and acquisitions in the sector.
ADQ, an Abu Dhabi-based holding company, is reportedly considering a potential acquisition of Bausch Health’s drug unit in Egypt, known as Amoun Pharmaceutical Co, sources told Bloomberg.