Rumors boost EDF on the stock market

April 07, 2021 16:00

The French public electricity company “Electricité de France” has soared by more than 10% on the stock market after various rumours point to the French government having an interest in removing EDF from the listing on the stock market by buying 16% of the capital of the company that is currently in the hands of retail investors and thus taking 100% of the company.

The value at yesterday’s closing price the repurchase of this 16% by the company amounted to 5.7 billion euros, however, the total sale could 10 billion euros. It is estimated that the repurchase includes convertible bonds for a value close to 3 billion, with the rest being the value of the premium as pointed out by Bloomberg, which would partly explain the strong increases in today's trading session.

These rumours support the upward trend that this value is following after setting minimums after the sharp falls during the start of the pandemic that led to a minimum of 5.92 euros, although it finally managed to recover pre-pandemic levels at the beginning of 2021 where a correction started that took it to reach the 50% Fibonacci retracement level.

Currently, after rebounding at 50% Fibonacci, the price has resumed its upward trend supported by the triple upward crossing of averages that we can see on the daily chart. After knowing this news, we can see how the price has made a strong upward gap that has led it to recover 12.40 euros per share, which could open the doors to seek its annual maximum level.

Source: EDF daily chart from Admiral Markets MetaTrader 5 platform from December 20, 2019 to April 7, 2021. Taken on April 7 at 1:20 PM CEST. Note: Past performance is not a reliable indicator of future results, or future performance.

Price evolution of the last 5 years: 

  • 2020: 29.89%
  • 2019: -28.06%
  • 2018: 32.44%
  • 2017: 16.09%
  • 2016: -28.69%

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