EGX 30 Inched 0.35% Up In Week On IMF Loan optimism
In a week, the Egyptian Exchange has managed to post slight losses of EGP 731 million. The capital market has hit EGP 387.976 billion at the end of last week, compared to EGP 388.708 billion at the end of a week earlier.
It is worth noting that, the market was closed on Monday on occasion of Eastern Christmas vacation.
Benchmark EGX 30 index inched up by 0.35% this week, representing an increase of 20.12 points, ending Thursday’s sessions at 5754.51 points compared to 5734.39 points at the end of last week.
Regarding current week trading, the index hit its highest point on Wednesday closing at 5,866.91 points, where its lowest point recorded on Sunday at 5,733.97 points.
During the first three sessions, EGX30 has managed to record positive performance backed by foreigners’ buying transactions penetrating the 8500 level on Tuesday. However, after foreigners switch to profit-taking, the benchmark fell on Thursday retreating to 5750 level.
Meanwhile, the mid- and small-cap index, the EGX70 dipped by 0.60% closing at 495.88 points during Thursday’s session, compared to 498.26 points at the end of a week earlier. Price index EGX100 dropped by 0.35% concluding Thursday’s session at 832.14 points, compared to 835.23 points during a week earlier.
The EGX has recorded in a week a volume of trades hit 592 million securities worth EGP 2.2 billion.
Companies’ Weekly Performance Highlights:
Eastern Tobacco – (EAST.CA) closed last week at LE 100.02, while closed on Thursday at EGP 99.04 (lowest close), dipping by EGP 0.98 (1 %).
Stock highest close during the week came on Sunday at EGP 100.1.
On Tuesday, A judicial advisory body will review on Feb. 3 a lawsuit seeking the closure of Egypt’s monopoly cigarette maker and a ban on the manufacturing of cigarettes in the country, said Mohamed Salem, the lawyer who filed the suit to Bloomberg.
The lawsuit, filed in March 2012, seeks the withdrawal of Eastern Company’s license to operate and the closure of its plants on grounds the production of cigarettes and the tobacco used in water pipes runs counter to the principles of Islamic law, as stipulated in the new constitution, Salem said by phone today. It also argues that manufacturing should be halted because smoking is harmful to the health, he said.
Cairo-based Eastern said in a statement to the Egyptian Exchange that the hearing was delayed until Feb. 3 to give the parties time to file documents. Officials at the company weren’t immediately available for comment.
“I’m not trying to harm the company or affect the stock market, but at the same time I don’t want anyone else to be hurt” by cigarettes, said Salem, who smoked for a decade before quitting two years ago.
On Wednesday, Eastern Tobacco announced that it backed down on its decision taken on Tuesday to modify cigarettes prices for 5 local brands.
The company added, in a release sent to EGX that, the brands which was included in the modification (Florida, Bluemont, Boston, Light and Cleopatra box) will be sold in its original prices.
Orascom Telecom Holding (ORTE.CA) closed last week at EGP 4.21, while closed on Thursday at EGP 4.17 (lowest prices), representing a retreat of EGP 0.04 (1 %).
The highest close during the week came on Wednesday at EGP 4.26.
On Thursday, Ahmed Abou Doma, Managing Director of Orascom Telecom, revealed that OT will compete for 3G licenses in Pakistan, Algeria and Bangladesh markets which are expected to be offered this year, Almal newspaper reported.
He added that, company’s strategy in 2013 depends mainly on operations management in a way that enhances profitability through focusing on data services as it is considered the next wave in telecom industry.
Regarding 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 this week earning the value of EGP 98,746,771.
Foreign investors chose also to buy by value of EGP 2,470,258.
Local investors were most active sellers this week by the value of EGP -101,217,027.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 54.13 – 73.50 %.
While Institutions activity ranged during this week between 26.49 – 45.86 %.
