During Monday closing session, the Egyptian Exchange (EGX) has tripled its early gains to eventually reach EGP 3 billion as the capital market has amounted to EGP 377.027 billion.
The main index, EGX30 inched higher by 0.65%% to close at 5459.92 p. EGX20 climbed by 1.13% to end at 6425.54 p.
Meanwhile, the mid- and small-cap index, the EGX70 rose by 0.52% to conclude at 501.72 pts. Price index EGX100 went up by 0.60% to finish at 845.36 p.
Traded volume reached 246.808 million securities worth EGP 751.239 million, exchanged 39.404 thousand transactions.
This was after trading in 181 listed securities; 64 declined 99 advanced while 18 keeping their previous levels.
The main reason behind EGX30’s rise was that Egyptians were net buyers seizing 80.48% of the total markets, with a net equity of EGP 7.765 million excluding the deals.
On the other hand, Arabs and non-Arab Foreigners were net sellers seizing 6.74% and 12.79% respectively, of the total markets, with a net equity of EGP 3.635 million and EGP 4.130 million excluding the deals.
Egyptian cabinet sources told Amwal Al Ghad that Prime Minister Hisham Kandil will be attending Tuesday’s opening trading session of the Egyptian Exchange (EGX).
Dr. Kandil is expected to deliver a speech during the EGX opening session aiming to emphasize that the cabinet supports the Egyptian bourse and appreciates its importance in handling the economic situation.
Momtaz Al-Saeed – Minister of Finanace, Osama Saleh – Minister of Investment and Dr. Ashraf Al-Sharkawy – the Chairman of the Egyptian Financial Supervisory Authority (EFSA), will be also with Dr. Kandil while attending the opening session.
Leading Shares:
EGX’s leading shares witnessed unsteady performance during the closing session.
Orascom Telecom Media & Technology Holding:
Shares of Orascom Telecom Media & Technology Holding (OTMT.CA) slumped by 1.72% to end at EGP 0.57.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) decreased by 0.17% to finish at EGP 277.79.
Mona El Shazly, analyst at Pharos Research, commented on the news that the Investors Relations of Orascom Construction Industries (OCI) stated that the methanol production line of OCI Beaumont in North America has commenced operations. The company will start selling its methanol production locally in the US as of September 2012.
El Shazly said this news is positive, adding that the new line is part of OCI’s expansion plan in the fertilizers segment in North America. OCI Beaumont is an integrated ammonia and methanol production facility located in Texas, North America. The ammonia plant has already commenced production in Q1-12 on low capacity, and is on track to reach its full capacity of 0.25m tons per annum (tpa).
The analyst indicated that the methanol plant has a production capacity of 0.75m tpa and was scheduled to commence operations in June 2012. However, the production has been delayed to Q3-12. OCI has signed a long-term off take agreement with Methanex Corporation, the world’s largest supplier of methanol, to sell a portion of its methanol production from the new line.
Palm Hills Development:
Palm Hills Development (PHDC.CA) climbed by 3.42% to close at EGP 2.42.
This was after Palm Hills has denied a news report which claimed that banks had refused to secure a loan of EGP 1.2 billion requested by the company. Palm Hills asserted that what has been published in one of the economic newspapers is groundless as the company is not considering any loan requests within the current phase.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) soared by 1.28% to end at EGP 4.76.
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) surged by 0.65% to conclude at EGP 12.43.
EFG-Hermes board of directors announced the date of the shareholders’ extraordinary meeting.
The board of EFG-Hermes Holding invited Thursday shareholders to attend an extraordinary general meeting on Sunday, 16/09/2012. EFG-Hermes had said Sunday it will announce the date of its extraordinary shareholders meeting with a week.
Shareholders will discuss the board’s report on strategic partnership with Qatari QInvest . They will also look into the fair value report by Grant Thornton, as regards defining fair values of the companies subject to the partnership.
The meeting will be discuss selling Hermes’ brokerage stake to EFG-Hermes Qatar for $250 million.
A dividend plan at EGP 4 per share will also be discussed in the meeting, taking into consideration the relevant stock split or treasury shares repurchase.
The company’s shareholders will further discuss waiving trade mark EFG-Hermes to Hermes Qatar and other relevant activities.
Pharos commented on the news that EFG-Hermes Holding will hold its 2nd extraordinary shareholder meeting (EGM) on Sept. 16th.
Hany Genena, CFA, Head of Research, Pharos Securities Brokerage, stated, “We reiterate our negative views on the deal for current shareholders”. Genena stated that the cash dividend is akin to a liquidation dividend and any possible upgrade in the valuation of the cyclical investment banking, asset management and brokerage businesses due to the recent improvement in market conditions has already been capped by the deal terms and the call option held by QInvest on the remaining 40.0% stake.
Citadel Capital:
Citadel Capital (CCAP.CA) inched higher by 0.28% to finish at EGP 3.54.
Mohab Agena, Head of Technical Analysis at Beltone Financial, said Thursday the stock of Citadel Capital faced resistance at EGP 3.4 , while having current support at EGP 3.2.
Agena advised investors to buy the stock near current price levels and to add more equities after breaking the current key resistance upwards.
Rising above the current level reflects one more step towards EGP 4 mark, a cash-ins area, the analyst said, defining the stop-loss point at EGP 3.1.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) went up by 0.28% to end at EGP 3.63.
El Sewedy Electric:
El Sewedy Electric (SWDY.CA) rose by 0.25% to conclude at EGP 24.03.
The company reported Monday a consolidated net profit of EGP 133.293 million during the first half of 2012, 62.2% down from a net profit of EGP 352.297 million a year earlier.
El Sewedy revenues during H1/2012 went down by 5% to EGP 7.13 billion, compared to EGP 7.49 billion during H1/2011.
Gross profit declined by 4% to EGP 947 million, compared to EGP 982 million.
Analysts say political turmoil in Sewedy’s main Middle East markets, especially Syria, has led to weaker demand that forced it to cut some production.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) rebounded by 0.25% to close at EGP 31.68.
Capital Intelligence (CI), the international credit rating agency, announced Wednesday that it has affirmed Commercial International Bank (CIB)’s Long and Short-Term Foreign Currency Ratings (FCR) at ‘BB+’ and ‘B’, respectively.
