EGX30 Jumps 4.8% In Week On Telecom Shares, EFG-Hermes

Egypt’s stock exchange benchmark EGX 30 index advanced by 4.8 % this week, representing an increase of 226.93 points, ending Thursday transactions at 4,934.92 points compared to 4,707.99 points at the end of last week.

Regarding current week trading, the index hit its highest point on Monday closing at 4,948.78 points, where its lowest point recorded on Tuesday at 4,908.36 points.

It is worth noting that, Egyptian Stock Exchange was closed on Wednesday 25/04/2012 due to Sinai Liberation Day vacation.


Egypt’s stock exchange benchmark extended positive sentiment for the second day and advanced by 2.57 % on Sunday to close at 4,829.12 points. Market trade volume reached 85,640,206 shares amounted to EGP 315,621,728.

The index extended rally for the third day, supported by telecom shares, and advanced by 2.48 % on Monday to close at 4,948.78 points. Market trade volume reached 188,143,246 shares amounted to EGP 797,369,224.

Egypt’s stock exchange main index ended rally which lasted for three days and retreated by 0.82 % on Tuesday to close at 4,908.36 points. Market trade volume reached 117,781,946 shares amounted to EGP 869,128,395.

Egyptian stock exchange main index EGX30 returned to green area as EFG-Hermes news push the index to rise by 0.54 % on Thursday to close at 4,934.92 points. Market trade volume reached 147,461,139 shares amounted to EGP 556,114,312.

Companies’ Weekly Performance Highlights:

Egyptian Company for Mobile Services (Mobinil) (EMOB.CA) stock closed last week at EGP 179.99, while closed on Thursday at EGP 192.77, jumping 7 % (EGP 12.78).

The highest close during that week came on Tuesday closing at EGP 192.85, while  the lowest close came on Monday at EGP 191.72.

On Sunday, Egyptian Financial Supervisory Authority (EFSA) announced that it approves tender offer submitted by MT Telecom SCRL to acquire up to 100.0000.000 shares representing 100 % of Mobinil at EGP 202.5 per share.

Accordingly, trading was be resumed on Orascom Telecom Media And Technology Holding and Mobinil shares Monday 23/04/2012.

On Monday, EGX Administration announced that the period of submitting bids to buy Mobinil shares will start on Tuesday 24/04/2012 and lasts for 20 working days ends in Wednesday 23/05/2012.

It added that, execution will take 5 working days after offers and bids period ends.

On Thursday, Mobinil conducts negotiations with Technology Innovation and Entrepreneurship Center to establish a joint laboratory for mobile applications, Almal newspaper reported.

An official Egyptian delegation to Finland during 16-18 April met a number of Finnish Funding Agency for Technology and Innovation’s officials in order to discuss means of establishing mobile-based Electronic Games development center.

Also on Thursday, Mobinil announced that its BOD assigned Cairo Financial Investments Company as its independent financial adviser to evaluate the mandatory tender offer submitted by France Telecom’s MT Telecom to buy 100 % of Mobinil.

Mobinil added, in a release sent to EGX that, BOD would release a statement clarifying its opinion in the feasibility, results and importance of the bid.

Orascom Telecom Media & Technology Holding – (OTMT.CA) stock closed last week at EGP1.44, while closed on Thursday at EGP 1.42, lowest close; retreating 1 %(EGP 0.02).

The highest close during the week came on Monday closing at EGP 1.5.

On Sunday, Khaled Bichara, Managing Director of OTMT, revealed that the amended terms between OTMT and France Telecom includes a financial appeasement for ceding managing Mobinil.

The financial appeasement value amount to € 110 million which was set in the first settlement deal, Almal newspaper reported.

Separately, Bichara pointed out that France Telecom showed interest to continue partnership with Egyptian investor in Mobinil in case of OTMT full exit.

Also on Sunday, EGX announced that trading will be resumed on Orascom Telecom Media And Technology Holding – (OTMT) and Mobinil shares Monday 23/04/2012.

EFG-Hermes (HRHO.CA) stock closed last week at EGP 11.5, while closed on Thursday at EGP 14.01; (highest close), representing an increase of 22 % (EGP 2.51).

The lowest close during the week came on Sunday at EGP 12.19.

On Thursday, Hermes stocks jumped to the highest in a month after it said QInvest LLC may hold a majority stake in an investment bank that the two are negotiating, Bloomberg reported.

The investment bank would be the largest in “the Arab World, Africa, Turkey, South and South East Asia, with the possibility of QInvest holding majority stake,” Cairo-based EFG-Hermes said in a statement today. The investment may help EFG-Hermes ride Egypt’s worst political and economic crisis in at least 30 years after last year’s popular uprising.

“The name is jogging higher on the back of the QInvest news,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities. “The market is currently speculating on a super dividend payout.”

EFG-Hermes said its private equity business and Lebanese commercial bank Credit Libanais SAL, in which it bought a 65 percent stake in 2010, are excluded from the discussions.

QInvest, a unit of Qatar Islamic Bank (QIBK), concluded talks to acquire 60 percent of EFG-Hermes, Egypt’s Al Shorouk newspaper reported yesterday, citing an unidentified person familiar with the talks.

One analyst recommends investors buy EFG-Hermes shares, while four have a hold rating on the stock and one says sell, according to data compiled by Bloomberg.

Also on Thursday, Qatari conglomerate Mannai and Egyptian investment bank EFG Hermes say they have gained control of Mideast jeweler Damas International after securing support from most shareholders, Daily Journal reported.

Damas’ board agreed to the $445 million takeover deal last month.

Mannai and EFG Hermes said on Thursday they have received support from 78 percent of shareholders, giving them enough support to complete the deal.

Mannai will effectively control Damas through its two-thirds stake.

ELSWEDY ELECTRIC – (SWDY.CA) closed last week at EGP 20.1, while closed on Thursday at EGP 21.81 (highest level), jumping 9 % (EGP 1.71).

Stock lowest level recorded on Sunday closing at EGP 20.55.

On Monday, ELSWEDY ELECTRIC OGM approved to distribute cash dividends of EGP 223.418.000 (EGP 1 per share).

On Tuesday, Awad Ibrahim, Libia’s Electricity Minister, revealed that Libyan Government awarded ELSWEDY ELECTRIC and Misr Mechanical Projects (KAHROMICA) the project of electricity network in Libya with investment cost of $ 1 billion, Alborsa newspaper reported.

He pointed out that Swedy is executing many project with Libyan Government in generating renewable energy; adding that, Swedy is expected to complete construction and operation of electricity generating plant by end of 2012.

Also on Tuesday, Swedy announced that the news published in Alborsa newspaper considering project awarded by Libyan Government to the company and Misr Mechanical Projects (KAHROMICA) is true.

The company added, in a release sent to EGX that, business volume between Libya and Egypt doesn’t exceed $ 1 billion.

Pioneers Holding (PIOH.CA) closed last week at EGP 3.43, while closed on Thursday at EGP 4.31 (highest level), jumping 26 % (EGP 0.88).

Stock lowest level recorded on Sunday closing at EGP 3.67.

On Sunday, Pioneers Holding reported consolidated financial results posting a net profit of EGP 114,712,566 for the period from 01/01/2011 till 31/12/2011.

Noting that, it posted net profits of EGP 19,825,098 for the same period of the previous year.

Heliopolis Housing (HELI.CA) closed last week at EGP 15.16, while closed on Thursday at EGP 16.1, jumping 6 % (EGP 0.94).

Stock highest level came on Sunday closing at EGP 16.12, while the lowest level recorded on Tuesday closing at EGP 16.03.

On Sunday, Heliopolis Housing BOD approved its financial results for the fiscal period ending in 31/03/2012 with net profits after taxes of EGP 77.994 million (unaudited), compared to EGP 116.590 million in the same period of the previous year.

On Monday, Heliopolis Housing announced that the session of selling 4 land plots in public auction set on Sunday 22/04/2012 was cancelled adding that a new date will be set later.

Sectors Performance:

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

Telecommunications sector achieved total traded value of EGP 846,693,553.

Financial Services came second in terms of performance, as it achieved total traded value of EGP 337,757,170.

Real Estate sector ranked third in terms of performance, as it achieved total traded value of EGP 329,467,030.

Regarding Construction & Material, it achieved total traded value of EGP 124,827,783.

Finally, Banks, as it achieved total traded value of EGP 102,297,078.

On Investors’ Activity:

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

– Local investors were the most active buyers all through the week as their stock this week earning the value of EGP 268,377,256.

– Arab investors chose also to buy by value of EGP 22,272,947.

– Foreign investors were most active sellers this week by the value of EGP 290,650,203.

Retail and Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 52.40 – 77.06 %.

While Institutions activity ranged during this week between 22.93 – 47.59 %.