EGX30 Edges 0.57% Lower This Week Amid 2-Day Vacation

Egypt’s stock exchange benchmark EGX 30 index retreated by 0.57 % this week, representing a decline of 27.16 points, ending Thursday transactions at 4,707.99 points compared to 4,735.15 points at the end of last week.

Regarding current week trading, the index hit its highest point on Thursday closing at 4,707.99 points, where its lowest point recorded on Wednesday at 4,672.55 points.

It is worth noting that, Sunday and Monday were official vacation on Easter Sunday and Sham Elneseem occasions.

Egypt’s stock exchange benchmark started week in red area after two day vacation and dipped by 1.19 % on Tuesday to close at 4,678.98 points. Market trade volume reached 63,180,529 shares amounted to LE 581,155,742.

Egypt’s stock exchange main index extended red area after fluctuated session and retreated by 0.14 % on Wednesday to close at 4,672.55 points. Market trade volume reached 77,340,484 shares amounted to LE 282,003,189.

The benchmark ended week in positive sentiment after two red sessions this week and rose by 0.76 % on Thursday to close at 4,707.99 points. Market trade volume reached 69,995,893 shares amounted to LE 324,108,223.

Companies’ weekly performance:

Orascom Telecom Holding (ORTE) stock closed last week at L.E 3.46, while closed on Thursday at L.E 3.5 (highest close), upping 1 % (LE 0.04).

The lowest close during the week came on Tuesday at LE 3.46.

Last Thursday, Orascom Telecom announced that it is submitting a formal Notice of Arbitration against the People’s Democratic Republic of Algeria in respect of the unlawful actions taken since 2008 by the Algerian government against Orascom Telecom Algerie .
In the Notice of Arbitration, OTH asserts that since 2008 its rights under the Agreement on the Promotion and Reciprocal Protection of Investments between Egypt and Algeria have been violated by actions taken by the Algerian government against OTA, including the recent court judgment against OTA and a member of its senior executive team imposing a total fine of 99 billion Algerian Dinar (approximately USD 1.3 billion) and a criminal sentence against a member of OTA’s senior executive team.
This international investment treaty claim is brought under the arbitration rules of the United Nations Commission on International Trade Law. OTH is fully confident in the strength of its claim.

Without prejudice to its legal rights and actions, OTH continues to be open to finding an amicable resolution with the Algerian government that is mutually beneficial to both parties and would fully support any initiative by its majority shareholder, VimpelCom Ltd., to seek an amicable resolution with the Government.

On Tuesday, Orascom Telecom reported standalone financial results posting a net profit of LE 3,437 (value in millions) for the period from 01/01/2011 till 31/12/2011.

An audit firm hired by the Algerian government has valued Vimpelcom’s troubled mobile phone unit Djezzy at $6.5 billion, a newspaper quoted Algerian Telecommunications Minister Moussa Benhamadi as saying on Sunday.

Algeria’s government has said it will buy a 51 percent stake in the unit from Vimpelcom, although that deal is now on hold after the Russian firm said it would take Algeria to international arbitration over a fine levied on Djezzy

El Khabar newspaper quoted Benhamadi as saying that a valuation commissioned from accountancy firm Shearman & Sterling put the value of all of Djezzy – not just the 51 percent the state wants to acquire – at $6.5 billion.

However, Benhamadi said the valuation was only the first phase in the process of reaching agreement over Djezzy’s future, with negotiations between the two sides still to be concluded, the newspaper reported.

Further complicating efforts to reach a deal, those talks are on hold while Vimpelcom disputes a $1.25 billion fine imposed on Djezzy by an Algerian court over currency violations.

On Tuesday, Orascom Telecom announced that subsequent to the approval of the financial statements for the Year Ended 31 December 2011 by the Board of Directors of OTH on 12 March 2012, the External Auditors of the company requested a change in the calculation of the corporate tax charge on the consolidated financial statements, resulting in an increase in the income tax item in the consolidated income statement for an amount of EGP 241 Million equivalent to US$ 40 Million.

The Board of Directors approved this change on 12 April 2012.

On Wednesday, Weather Investments II SARL, which holds a 52 percent stake in OT, said it notified Algeria’s government of an investment dispute on its local unit Djezzy, triggering a six-month dispute resolution period.

If no resolution is reached, Weather said it will file for international arbitration.

Egyptian Company for Mobile Services (Mobinil) – (EMOB) stock closed last week at L.E 179.97, while closed on Wednesday at L.E 179.99, highest close; (LE 0.02).

On Tuesday, Mobinil sent a release to EGX, stating that an obligatory tender offer submitted by MT Telecom SSRL (France Telecom-Orange affiliate), according to Article no. 330 of the Executive Regulations of Law no. 95 for the year 1992, to buy up to 100 million shares representing 100 % of Mobinil shares.

On Thursday, Egypt’s stock exchange suspended trading on mobile operator Mobinil and Orascom Telecom Media and Technology (OTMT) – on request of the country’s regulator, it said in a statement on Thursday without providing further details, Reuters reported.

The deal is subject to regulatory approval in Egypt. The chairman of financial market regulator EFSA, Ashraf el-Sharqawy, had said the watchdog would give its response this week.

Also on Thursday, The Egyptian Financial Supervisory Authority (EFSA) is still mulling the mandatory tender offer by France Telecom to purchase 100 per cent of the issued capital of the Egyptian Company for Mobile Services (Mobinil) at LE202.5 per share, EFSA Chairman Ashraf El-Sharqawy said.

El-Sharqawy denied rumours about rejecting France Telecom’s offer, explaining that the law allows EFSA to respond to any acquisition in two days after receiving the offer and if the watchdog asks for further documents from the deal’s parties the period will be extended for two more days.

He added that a final decision on the deal will be announced through legal means, such as Bourse’s trading screens.

Last week France Telecom finalised a deal to buy most of its partner’s stake in Egyptian mobile operator Mobinil for 1.5 billion euros ($2 billion), leaving the venture with 95 per cent French ownership but a significant Egyptian board and management presence.

The deal, which confirms a preliminary agreement struck in February, recasts the terms of its relationship with Egyptian tycoon Naguib Sawiris, who had a put option to sell out completely to France Telecom starting in September 2012.

Also on Thursday, Mobinil sent a statement to Egyptian Stock Exchange stating that it will report its financial statements over period ended in 31/03/2012 (Q1/2012) on Monday 30/04/2012 after trading session in EGX and LSE.

Pioneers Holding (PIOH) stock closed last week at L.E 3.46, while closed on Thursday at L.E 3.43; (highest close), representing a decline of 1 % (LE 0.03).

The lowest close during the week came on Wednesday at LE 3.35.

On Thursday, Pioneers Holding announced that company’s BOD approved consolidated financial results for the period ending in 31 December 2011 with net profits after taxes of LE 114.7 million (unaudited), compared to LE 19.8 million in 2010.

EL Ezz Aldekhela Steel – Alexandria – (IRAX) closed last week at LE 491.26, while closed on Thursday at LE 517.88 (highest level), jumping 5 % (LE 26.62).

Stock lowest level recorded on Wednesday closing at LE 500.26.

On Tuesday, on Wednesday, EL Ezz Aldekhela Steel – Alexandria declared cash dividends of LE 40 per share payable on 06/05/2012.
Shareholders as of 30/04/2012 are entitled to cash dividends distribution.

Sectors performance:

The most active sectors all through the week were Telecommunications, Food & Beverages, Real Estate, Financial Services and Construction & Material.

Telecommunications sector achieved total traded value of L.E 276,690,806.

Food & Beverages came second in terms of performance, as it achieved total traded value of L.E 111,027,317.

Real Estate sector ranked third in terms of performance, as it achieved total traded value of LE 90,904,280.

Regarding Financial Services, it achieved total traded value of L.E 85,881,863.

Finally, Construction & Material, as it achieved total traded value of LE 78,764,353.

Investors’ Activity:

-Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively.

– Arab investors were the most active buyers all through the week as their stock this week earning the value of L.E 91,309,100.

– Local investors chose also to buy by value of L.E 87,743,364.

– Foreign investors were most active sellers this week by the value of L.E 179,052,462.

Retail and Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 23.06 – 57.30 %. While Institutions activity ranged during this week between 42.69 – 76.93 %.