EGX Main Index 2.9% Up, Penetrates 5800 Pts Level In Week

Egyptian Exchange benchmark EGX 30 index advanced by 2.92 % this week, representing an increase of 165.76 points, ending Thursday transactions at 5827.91 points compared to 5662.15 points at the end of last week.

Regarding current week trading, the index hit its highest point on Wednesday closing at 5911.30 points, where its lowest point recorded on Sunday at 5821.75 points.

Main index EGX30 hit a 20 months high and jumped 2.82 % to close at 5,821.75 points on Sunday. Market trade volume reached 273,132,520 shares amounted to EGP 1,835,742,725.

EGX30 ended in green area and rose by 1.27 % on Monday to close at 5,895.63 points. Market trade volume reached 416,367,200 shares amounted to EGP 1,778,379,282.

It is worth mentioning that this is the highest close since Jan. 26, 2011, the second day of the revolt that ended President Hosni Mubarak’s three- decade rule. The index is up 63 percent in 2012, outperforming more than 90 global indexes tracked by Bloomberg.

The Index ended in red and retreated by 0.08 % on Tuesday to close at 5,890.80 points. Market trade volume reached 306,363,005 shares amounted to EGP 1,633,282,548.

EGX30 shrunk early gains and rose by 0.35 % to close at 5,911.30 points on Wednesday. Market trade volume reached 283,453,509 shares amounted to EGP 1,244,201,698.

EGX30 ended the end of the week session in red area and dipped by 1.41 % to close at 5,827.91 points on Thursday. Market trade volume reached 226,043,634 shares amounted to EGP 1,144,780,324.

Companies’  Performance Highlights:

Orascom Construction Industries (OCI) – (OCIC.CA) closed last week at EGP 289.36, while closed on Thursday at EGP 291.26 (lowest close), rising by 1 % (EGP 1.9).

Stock highest close during the week came on Monday at EGP 299.76.

On Thursday, Orascom Construction Industries (OCI) said its joint venture with its BESIX subsidiary had won a $400 million project to build a shopping mall in Sixth of October City on the western outskirts of Cairo, Reuters reported.

OCI Chairman and Chief Executive Officer, Nassef Sawiris commented: “This is the largest foreign investment in Egypt since the election of the new government. We have been very impressed by the efficient manner in which the new leadership reviewed required regulatory approvals for this project and we look forward to continuing to work together. The Mall of Egypt development marks an important milestone in Egypt’s economic recovery and signals a resurgence of private foreign investment in the country.”

Six of October Development & Investment (SODIC) – (OCDI.CA) stock closed last week at EGP 25.9, while closed on Thursday at EGP 24.54 (lowest close), dipping by 5 % (EGP 1.36).

Stock highest close during the week came on Sunday at EGP 26.3.

Bloomberg reported last week that SODIC wants to void agreements and get compensation from Solidere International, saying that the Beirut-based company didn’t develop a land plot according to plan.

On Wednesday, SODIC has refuted the news that Lebanon’s Solidere International has paid EGP 160 million so as to settle their current disputes over a piece of land spreading over 250,000 m2.

SODIC noted that the above-stated sum had already been paid by Solidere as per signed contracts and without any intention to end the current disputes between the two companies.

SODIC added that the arbitration lawsuit filed against Solidere as the latter did not fulfill its obligations as pursuant to the agreement signed between the two firms in June 2008 on Sheikh Zayed Project. SODIC said arbitration procedures are confidential.

SODIC announced on September 12th that the company has started adopting the legal procedures against Solidere International. It said the company has submitted a request to Cairo Regional Centre for International Arbitration (CRCICA) for terminating the contract signed with the Lebanese company.

SODIC said filling an arbitration lawsuit against Solidere because the latter has breached the agreement signed between the two firms in June 2008 on Sheikh Zayed Project.

On Thursday the Group said it was notified of an arbitration case filed on September 16th by Solidere Egypt, a wholly-owned subsidiary of Lebanon’s Solidere International, with claims of paying EGP 237.5 million plus interest and expenses.

In a filing posted on EGX website today, SODIC said that such an arbitration case is invalid, since it was filed after SODIC had filed an earlier arbitration case in the same dispute.

Citadel Capital – (CCAP.CA) closed last week at EGP 3.66, while closed on Thursday at EGP 4.33, jumping by EGP 0.67 (18%).

Stock highest close during the week came on Wednesday at EGP 4.33, while the lowest close came on Sunday at EGP 3.78.

Ahmed Heikal Citadel Capital Founder and Chairman, said Tuesday the company will be injecting more investments in the African planet within the coming period. African countries such as Kenya and Mozambique enjoy key investment opportunities and political stability.

The Algerian government said Wednesday it has started negotiations with Citadel Capital on acquiring a 49% stake in ASEC Algeria Cement, a subsidiary of ASEC Cement Holding (ACH), through right issue to increase the company’s capital which worth $60 million. ASEC Algeria plans to establish a new cement plant at a production capacity of 3.5 million tons  in Gulfa city.

ASEC Cement Holding is Citadel Capital’s arm in cement sector.

Under Algerian regulations on banking finance, the firms that have been founded in Algeria or have local contributors shall obtain loans through Algerian banks only.

In case of reaching an acquisition deal with the Algerian government, ASEC Algeria shall re-make its financial study on the construction of two cement production lines as the government intends to inject further liquidity for the firm. ASEC’s current study targets obtaining loans of $180 million so as to establish the first production line of which 30% has been completed.

In a release to the EGX, Citadel Capital said Thursday the Group is holding negotiations with different parties to divest Misr October Food Industries – Elmisrieen, a wholly owned subsidiary of Citadel’s Gozour.

Citadel noted that it is not the first time to receive buyout offers for Elmisrieen. The results of these talks will be duly announced once concluded, the Group added.

Egyptian Financial Group Hermes – (HRHO.CA) closed last week at EGP 12.95, while closed on Thursday at EGP 12.16 (lowest close) dipping 6 % (EGP 0.79).

Stock highest close during the week came on Sunday at EGP 13.4.

On Sunday, EFG-Hermes approved in its EGM meeting strategic partnership with Qatari QInvest.

Moreover, it approved fair value study by the independent financial adviser Grant Thornton which sets the fair value of the affiliates which will be included in the partnership.

The company it approved to sell its entire stake in Brokerage, Research, Asset Management and Investment Banks’ Services to EFG-Hermes Qatar for $ 250 million.

Finally, it approved initially to distribute cash dividends of EGP 4/share for shareholders.

“This is a net positive for Egypt: It will catalyse the next phase of growth for an Egyptian multinational at the same time as netting USD 250 million in foreign investment for our nation. It is also an important development for the Arab world as we create a platform that will see the firm expand far beyond our present borders”, said EFG Hermes Chairperson Mona Zulficar.

On Monday, a local economic newspaper reported that close sources of the strategic alliance between Hermes and Qatari QInvest revealed that JP Morgan’s valuation of 100 % of Hermes shares ranged between $ 312-390 million, with $ 25 million difference than the actual price of the deal amounting to $ 415 million.

On Wednesday, Leading international investors with more than USD 500 billion in total assets under management began a road show in Cairo on Sunday led by EFG Hermes, the leading investment bank in the Arab world.

More than 20 investors from the United States, Europe, South Africa and the Middle East with a combined USD 2 billion already invested in Egypt began their three-day road show with high-level briefings from Egyptian Prime Minister Hisham Kandil and senior Cabinet Members including the Ministers of Investment, Industry, Tourism, Housing, Petroleum and Minister of State for Legal and Parliamentary Affairs.

Investors also met with the heads of the economic committees of major national political parties.

Sectors Performance:

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

Financial Services sector achieved total traded value of EGP 1,166,821,488.

Real Estate came second in terms of performance, as it achieved total traded value of EGP 1,116,790,546.

Telecommunications sector ranked third in terms of performance, as it achieved total traded value of EGP 672,340,853.

Regarding, Construction & Material it achieved total traded value of EGP 602,414,006.

Finally, Personal and Household Products, as it achieved total traded value of EGP 294,977,871.

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 69,365,789 .

Local investors were most active sellers this week by the value of EGP 62,914,816.

Arab investors chose also to sell by value of EGP 6,450,972.

Retail & Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 44.48 – 58.95 %.

While Institutions activity ranged during this week between 41.63 – 55.51%.