Egyptian Exchange’s benchmark EGX 30 index rose 1.11 % this week, representing an increase of 63.98 points, ending Thursday transactions at 5803 points compared to 5739.02 points at the end of last week.
Regarding current week trading, the index hit its highest point on Wednesday closing at 5,821.06 points, where its lowest point recorded on Monday at 5712.41points.
Egyptian stock exchange main index EGX30 started week in fluctuated performance to extend red area and retreat by 0.28 % to close at 5723.11 points on Sunday. Market trade volume reached 104,420,387 shares amounted to EGP 385,795,580.
EGX30 extended fluctuated performance and retreated by 0.19 % to close at 5712.41 points on Monday. Market trade volume reached 104,153,588 shares amounted to EGP 491,982,746.
The Index extended fluctuated performance which marked this week and edged 0.05 % lower to close at 5715.34 points on Tuesday. Market trade volume reached 244,778,980 shares amounted to EGP 593,378,214.
EGX30 Egyptian stock exchange main index EGX30 reversed fluctuated performance which marked this week and advanced 1.85 % to close at 5821.06 points on Wednesday. Market trade volume reached 282,637,238 shares amounted to EGP 655,345,787.
The main index EGX30 returned to red area and retreated 0.31 % to close at 5803 points on Thursday. Market trade volume reached 220,605,755 shares amounted to EGP 1,234,331,833.
Companies’ Weekly Performance Highlights:
Orascom Construction Industries – (OCIC.CA) closed last week at EGP 277.39, while closed on Thursday at EGP 268.49, dipping by EGP 8.9 (3%).
Stock highest close during the week came on Sunday at EGP 274.38, while the lowest close came on Tuesday at EGP 266.54.
Iraq plans to spend up to $1.6 billion on solar and wind power stations over the next three years to add 400 megawatts to the national grid to help curb daily blackouts, an official from the ministry of electricity said on Monday.
Invitations have been sent to about 25 leading companies to manufacture and install solar and wind power plants, said Laith al-Mamury, the head of the planning and studies department at the ministry of electricity.
According to Reuters, the companies include Japan’s Toyota Tsusho Corp, Swiss engineering group ABB and Egypt’s Orascom Construction.
On Wednesday, OCI’s investor relations manager Omar Darwazah, will tell the authorities next week that it has no unpaid tax, Bloomberg Reported.
OCI, Egypt’s largest publicly traded company, was indirectly accused by President Mohamed Mursi in an Oct. 6 speech of avoiding tax on the 8.8 billion-euros ($11.5 billion) sale of its cement unit to Lafarge SA (LG) in 2007, two months after listing it on the Cairo bourse.
“This is the first year after the 2003 war, in which you’re really seeing significant infrastructure spending in Iraq,” Darwazeh said in a telephone interview. “Iraq and Saudi Arabia are key markets for us.”
The company expects to complete the separation of its construction and fertilizer units in November, Darwazah said.
On Thursday, Medical Union Pharmaceuticals announced that company’s BOD approved to purchase a new administrative building.
Moreover, it approved to award Orascom Construction EGP 10.303.385 construction works.
Orascom Telecom Media And Technology Holding – (OTMT.CA) closed last week at EGP 0.54, while closed on Thursday at EGP 0.6 jumping 11 % (EGP 0.06).
Stock highest close during the week came on Wednesday at EGP 0.61, while the lowest close came on Sunday at EGP 0.53.
On Monday, OTMT announced that it received a notice whereby France Telecom will use its right to seek a cheque contract of general services and whereby this contract OTMT offers services for Mobinil in addition to delayed dues.
Moreover, OTMT and France Telecom expect to sign transitional services contract with Mobinil in order to discuss ways to enhance cost structure of Mobinil as this contract will not impose extra cost on Mobinil.
Considering the cheque contract, delayed dues and signing new advisory services contract with Mobinil, France Telecom will pay 110 million Euro for it.
After this process, OTMT expects to offer administrative services for Mobinil as a local and strategic partner in its future operations.
Finally, OTMT expects that procedures to be finalized during October, November 2012.
On Wednesday, EFG Hermes investment bank said in a research note that it has increased its valuation of OTMT by 26 percent to 0.80 Egyptian pounds and USD0.65/GDR per share as a result of the France Telecom payment.
Hermes stated that, while OTMT did not clarify when it would receive the fees or the use of the proceeds, we believe that OTMT could opt to distribute another one-off dividend to shareholders on the back of the cash received. If the company was to distribute all of the proceeds, this would result in a dividend of cEGP0.16 – 0.17 per share.
Egyptian Financial Group-Hermes Holding Company – (HRHO.CA) stock closed last week at EGP 11.71, while closed on Thursday at EGP 12.13, upping by 4 % (EGP 0.42).
Stock highest close during the week came on Wednesday at EGP 12.25, while the lowest close came on Sunday closing at EGP 11.78.
Last Thursday, EFG-Hermes Chairwoman Mona Zulficar said that the firm expects Egypt’s financial regulator to approve the creation of an investment bank with QInvest next week, Reuters reported.
“I expect regulatory approval early next week from EFSA and that this will signal start of procedures to implement the joint venture agreement with QInvest and create the most important investment bank in the region,” Zulficar said in an emailed statement.
Egypt’s regulator has no objections to EFG Hermes’ plan to create a jointly-owned investment bank with QInvest of Qatar, the bank said on Monday.
“The Egyptian Financial Supervisory Authority certified, with no reservations … (EFG Hermes’) Extraordinary General Meeting minutes that was held on Sunday September 16, 2012 to approve the company’s strategic alliance with QInvest,” EFG Hermes said in a statement.
The statement was sent to the Egyptian and London stock exchanges.
An spokeswoman for the Egyptian bank said no further approvals were needed from the Egyptian authorities.
Ezz Steel – (ESRS.CA) stock closed last week at EGP 10.12, while closed on Thursday at EGP 10.63 (highest close), increased by 5 % (EGP 0.51).
Stock lowest close during the week came on Tuesday at EGP 10.15.
On Tuesday, Ezz Steel reported consolidated financial results posting a net profit of EGP 205,609 (value in thousands) for the first half of 2012.
Noting that, it posted net profits of EGP 184,767 (value in thousands) for the same period of the previous year.
Also on Tuesday, Ezz Steel, Egypt’s largest steel producer, reported a 16 percent drop in net profit for the second quarter, as the company grappled with persistent economic weakness since last year’s popular uprising, Reuters reported.
Ezzsteel has benefited from buoyant demand for affordable housing, helping offset a slump in infrastructure and luxury real estate projects since the ousting of Hosni Mubarak.
Net income for the three-month period was 142.43 million Egyptian pounds ($23.34 million), down from 168.64 million pounds a year earlier, according to a stock exchange filing.
Amer Group – (AMER.CA) stock closed last week at EGP 0.73, while closed on Thursday at EGP 0.72 (lowest close), retreated by 1 % (EGP 0.01).
Stock highest close during the week came on Wednesday at EGP 0.73.
On Thursday, Amer Group Holding announced that it received two legal claims against two of its affiliates, the first to annul Porto Marina contract, while the other to pay EGP 50 million compensation for Porto South Beach land.
The first claim was filed by New Urban Communities Authority (NUCA) seeking contract annulment with Delmar Touristic Development saying that it didn’t pay financial commitments.
Riyad Refaat, Investor Relations Manager of Amer, stated that Delmar’s legal situation is solid adding that it would take the required legal procedures to protect its rights.
Eng. Ahmed Emara, Touristic Villages Authority Chairman, stated that claim against Delmar was filed due to EGP 61 million debts.
Sectors Performance:
The most active sectors all through the week were Telecommunications, Real Estate, Financial Services, Banks and Construction & Material.
Telecommunications sector achieved total traded value of EGP 479,154,365.
Real Estate came second in terms of performance, as it achieved total traded value of EGP 463,617,297.
Financial Services sector ranked third in terms of performance, as it achieved total traded value of EGP 441,591,624.
Regarding, Banks it achieved total traded value of EGP 378,698,997.
Finally, Construction & Material, as it achieved total traded value of EGP 275,674,398.
Investors’ Activity:
Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively.
Foreign investors were the most active buyers this week earning the value of EGP 167,343,151.
Arab investors chose also to buy by value of EGP 38,050,437.
Local investors were most active sellers this week by the value of EGP 205,393,588.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 45.84 – 85.52 %.
While Institutions activity ranged during this week between 14.47 – 54.15 %.
