Egypt’s Main Index Surges 1% in Week amid Security Unrest
In a week, Egyptian shares attained gains totaled EGP 2.7 billion amid security unrest. Two explosions were occurred through the week, first on Tuesday rocking a police compound in Mansoura; whereas the other took place in a bus in Nasr City district in Cairo.
The capital market reached EGP 425.833 billion last Thursday, compared to EGP 423.135 billion at the end of a week earlier.
Accordingly, the Egyptian Exchange’s benchmark index EGX 30 index inched up by 0.95% this week, registering a surge of 64.43 points, ending Thursday’s transactions at 6812.5 points compared to 6748.07 points at the end of a week earlier.
The main gauge index hit its highest point on Wednesday closing at 6870.07 points, where its lowest point recorded on Monday at 6725.41 points.
Meanwhile, the mid- and small-cap index, the EGX70 rose by 0.57% closing at 538.24 points during Thursday’s session, compared to 535.19 points at the end of a week earlier. The price index, EGX100 also increased by 0.83% concluding by 918.5 points during Thursday’s session, against 910.96 points at the end of a week earlier.
Companies’ Weekly Performance Highlights:
Telecom Egypt – (ETEL.CA) closed last week at EGP 13.7, while closed on Thursday at EGP 14.35, upping by EGP 0.65 (5%).
Stock highest close during the week came on Wednesday at EGP 14.43, while the lowest close came on Monday at EGP 13.64.
On Wednesday, An official source in Telecom Egypt announced that the company is intending to conduct talks with Mobinil and Vodafone to renew international gate license next year-end, Alaml newspaper.
He expected that, the company reached a mutual deal with a Chinese operator to extend marine cable linking China and Europe in the first quarter of 2014 with expected investments of EGP 600 million.
Also on Wednesday, Mohamed El-Nawawy , CEO of Telecom Egypt, stated that Saudi Telecom Company didn’t submit bid to acquire TE stake in Vodafone Egypt, Anadolu Agency reported.
Telecom Egypt owns about 45 % in Vodafone, while the remaining 55 % owned by Vodafone International.
He added that, the company didn’t receive bids to sell stake in Vodafone so far.
According to an official in Vodafone, STC entered talks with TE to acquire its stake in Vodafone.
Also on Wednesday, Telecom Egypt (TE) signed an EGP 55m agreement with Commercial International Bank (CIB) to provide a service that would give the bank’s data centre a data speed of 10 gigabytes per second using fiber-optic technology, according to a statement from TE.
On the other hand, Ashraf Halim, Vice President Commercial of Mobinil, stated that Mobinil targets getting the license in the first place regardless the mechanism.
He added that, the mechanisms include discussing possibility of partnership with Telecom Egypt according to mutually satisfactory solutions.
Palm Hills Development – (PHDC.CA) closed last week at EGP 2.67, while closed on Thursday at EGP 2.69, upping by EGP 0.02 (1 %).
Stock highest close during the week came on Wednesday at EGP 2.72, while the lowest close came on Tuesday at EGP 2.67.
On Sunday, Egyptian Minister of Investment Osama Saleh met Saturday business tycoon Yassin Mansour to discuss the latter’s investment plan, the ministry stated.
Mansour — Egypt’s fifth richest man with a fortune of around $2 billion — returned to Egypt earlier this month after two years in the United Kingdom during which he was accused of profiteering and wasting public monies in association with officials belonging to the regime of deposed president Hosni Mubarak.
In July 2012, Mansour was cleared of the charges and accordingly his name was removed from a travel ban watchlist.
After his return, the 51-year-old resumed chairing Palm Hills, the country’s second biggest real estate developer.
According to the investment ministry statement, Mansour listed to Saleh some of the challenges PHD faces in two of its projects, asking the government to help ease them.
The meeting with Mansour reflects the government’s keenness to prompt the business community, particularly Egyptian business figures, to pump investment into the domestic market, the statement added.
On Monday, Palm Hills denied media reports about expansion in investment activity in the coming period which requires capital increase to complete ongoing projects.
The company added, in a release sent to EGX that, this news is totally untrue as the company just increased its capital by EGP 600 million in 2013.
On Wednesday, Palm Hills announced that that the number of shares which were covered during capital increase subscription reached 12.781.625 shares (32.18 times).
Six of October Development & Investment (SODIC) – (OCDI.CA) closed last week at EGP 24, while closed on Thursday at EGP 22.61 (lowest close), dipping by EGP 1.39 (6 %).
Stock highest close during the week came on Wednesday at EGP 23.02.
On Sunday, SODIC denied receiving letters from Housing Ministry regarding reaching a deal about Eastown project owned by its affiliate SOREAL Co.
SODIC confirmed that, the company still in talks with NUCA considering this issue.
On Tuesday, SODIC delivered one of its Polygon Business Park’s buildings to Juhayna Food Industries’ this week.
The 7,000 square metre building will serve as Juhayna’s new headquarters. The agreement was signed between the two home-grown Egyptian companies last January in a deal worth over EGP 79 million.
The Polygon Business Park is Westown’s first business park and is designed by multiple-award-winning UK-based architects Wilkinson-Eyre. The Polygon has been recognised this year by Cityscape as Best Commercial and Mixed Use Project Award – Future category in 2013.
The Business Park offers over 70,000 square metres of state-of-the-art office space and is designed to accommodate both small and large scale corporations, with offices ranging from 67 square metres to full 9,000 square metre buildings.
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 92,658,781.
Foreign investors chose also to buy by value of EGP 11,852,747.
Local investors were most active sellers this week by the value of EGP 104,511,528.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 41.10 – 71.12 %.
While Institutions activity ranged during this week between 28.87 – 58.89 %.
