Egypt Bourse Benchmark Rises 0.4% In Week
In a week, Egypt bourse has managed to gain EGP 630 million as the capital market reached EGP 364.841 billion on Thursday, compared to EGP 364.210 billion a week earlier.
Egyptian Exchange’s benchmark EGX 30 index rose by 0.44% this week, representing an increase of 24.04 points, ending Thursday’s transactions at 5427.97 points compared to 5404 points at the end of last week.
The EGX30 hit its highest point on Wednesday closing at 5455.74 points, where its lowest point recorded on Monday at 5400.76 points.
Meanwhile, the mid- and small-cap index, the EGX70 fell by 0.93% closing at 451.75 points during Thursday’s session, compared to 456 points at the end of a week earlier. The price index, EGX100 dropped by 0.29% concluding by 760.72 points during Thursday’s session, compared to 763 points at the end of a week earlier.
Companies’ Weekly Performance Highlights:
Orascom Construction Industries (OCIC.CA) closed last week at EGP 240.29, while closed on Thursday at EGP 239.76 (lowest close), dipping by EGP 0.53.
Stock highest close during the week came on Monday at EGP 245.82.
On Tuesday, OCI announced that it has been advised by OCI N.V. of its intention to formally proceed with filing all necessary documentation with the relevant Egyptian authorities to complete the Company’s tender offer for the ordinary shares of OCI listed on the Egyptian Stock Exchange (EGX).
Pursuant to Chapter XII of Egypt’s Capital Markets Law No. 95 of the year 1992, OCI N.V. will offer holders of OCI’s outstanding ordinary shares listed on the EGX the option to exchange their shares for OCI N.V. shares, or, at the election of the relevant holder, a cash alternative of EGP 255 per share.
The Company has signed extensions to the equity commitments made by participating US investors comprising Cascade Investment, L.L.C., Southeastern Asset Management, and Davis Selected Advisers to fund the cash alternative to shareholders.
“The decline in the offered price per share was expected as the share price went down on the tax dispute and has never gone up since then to 280 pounds and that is why they lowered the price,” CI Capital construction analyst Alia El Mehelmy told Reuters.
Orascom Telecom Holding – (ORTE.CA) closed last week at EGP 4.68, while closed on Thursday at EGP 4.7, upping by EGP 0.02.
Stock highest close during the week came on Wednesday at EGP 4.71, while the lowest close came on Tuesday at EGP 4.66.
On Tuesday, OT management has recommended shareholders reject an offer by a subsidiary of Russian billionaire Mikhail Fridman’s Altimo to buy the company for $0.70 (46 pence) a share.
A Cyprus-based subsidiary of Altimo made the offer in late March. Orascom has mobile businesses in Canada, Algeria and other emerging markets such as Bangladesh.
A statement by Orascom said that an independent financial adviser had put a fair value on Orascom’s shares of $0.86 per share.
“Hence we see that the offer price is below the fair value of the share by 18.7 percent,” the statement said.
Cairo-based Orascom Telecom, a heavyweight on the Egyptian Stock Exchange, is controlled by Russia’s Vimpelcom, which together with subsidiaries owns 51.92 percent. Altimo owns 47.85 percent of Vimpelcom.
The offer comes as uncertainty over Orascom’s most lucrative asset, Algerian unit Djezzy which the Algerian government plans to nationalise, appears closer to being resolved.
Orascom Telecom said on Wednesday it swung to a net loss in the first quarter of 2013, blaming foreign exchange losses and impairment of some assets, Reuters reported.
The firm, controlled by Russia’s Vimpelcom, made a net loss before minority interests of $204 million for the quarter compared to a profit of $120.4 million a year earlier, it said in a statement.
It said the loss was “mainly driven by the adverse impact of foreign exchange losses of $173 million and the impairment of assets held for sale by $58 million, as to reflect the fair value of our operations in CAR (Central African Republic) and Burundi.”
Orascom said it made revenue of $849 million for the quarter, a decline of about 1 percent over the previous year. Total subscribers increased 3 percent from a year earlier to about 85 million.
The firm’s management on Tuesday recommended shareholders reject an offer by a subsidiary of Russian billionaire Mikhail Fridman’s Altime to buy the company for $0.70 a share.
It said an independent financial adviser had put a fair value on Orascom’s shares of $0.86 per share.
Regarding 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 this week earning the value of EGP 25,479,459.
Foreign investors were most active sellers this week by the value of EGP 28,042,243.
Arab investors chose also to buy by value of EGP 587,489.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 23.24 – 55.08 %.
While Institutions activity ranged during this week between 44.91 – 76.75 %.
