EGX 30 Dives 1% On Announcing Egypt’s New PM; Tuesday Closing
During Tuesday closing session, the Egyptian Exchange (EGX) has extended posting losses of EGP 1.91 billion as the capital market has amounted to EGP 335.870 billion.
Egyptian President Mohamed Morsi has asked Hisham Kandil, the minister of water resources and irrigation little known outside Egypt, to form a new government, state media reported on Tuesday.
Kandil was a senior bureaucrat in the ministry until he was appointed minister in July last year in the wake of the overthrow of President Hosni Mubarak.
The main index, EGX30 dived 1% to close at 4819.53 p. EGX20 tumbled 0.87% to end at 5511.82 p.
“This is quite a surprise as most of the names put around had been from the financial sector. The market is definitely reacting negatively,” said Mohamed Radwan at Pharos Securities.
Meanwhile, the mid- and small-cap index, the EGX70 edged down 0.38% to finish at 425.81 p. Price index EGX100 inched lower 0.45% to conclude at 730.88 p.
Traded volume reached 284.966 million securities worth EGP 431.279 million, exchanged through 23.275 transactions.
This was after trading in 168 listed securities; 97 declined 47 advanced while 24 keeping their previous levels.
Egyptians and Arabs were net buyers seizing 62.29% and 5.3% respectively, of the total markets, with a net equity of EGP 128.768 million and EGP 7.107 million excluding the deals.
The reason behind EGX30’ early downwards was that non-Arab Foreigners were net sellers amid the announcement of new cabinet formation seizing 32.41% of the total markets, with a net equity of EGP 135.875 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective downwards except for the shares of Orascom Telecom Media & Technology Holding (OTMT.CA)which soared 6.38% to end at EGP 0.50.
Citadel Capital:
Shares of Citadel Capital retreated for the first time in three days, led EGX downwards losing 3.27% to finish at EGP 2.96.
Citadel Capital, (CCAP.CA), the leading private equity firm in the Middle East and Africa with US$ 9.5 billion in investments under control, confirmed Tuesday that Golden Crescent Investments Ltd., an Opportunity-Specific Fund controlled by the firm, has entered into a termination agreement that ends the previously announced sale of the National Petroleum Company Egypt Limited (NPC Egypt) to Sea Dragon Energy Inc. (Sea Dragon), a Calgary-based exploration and development company.
Golden Crescent and Sea Dragon mutually agreed to enter into the termination agreement in light of uncertainty regarding the date on which the acquisition could be completed as well as ongoing economic turbulence locally and internationally.
“Citadel Capital’s ongoing program to rebalance its portfolio through the divestment of smaller and non-core assets continues apace,” said Citadel Capital Founder and Chairman Ahmed Heikal. “While will be reviewing the future of NPC Egypt in the period ahead, our emphasis through the end of this year is firmly on tending to the growth of core platform and portfolio companies while reviewing additional divestment transactions now in the pipeline.”
Heikal noted that the firm added more than US$ 325 million to its balance sheet in FY11 and has deployed in the first six months of this year some US$ 100.35 million of a US$ 150 million OPIC-backed facility to fast-track growth at core investments.
“We maintain a confident view on the outlook for our core investments, which made important operational and financial progress in the first half, which as we have noted in our recently released Business Review have weathered the economic fallout from the Revolution. These investments are now resuming the growth tracks on which they were moving pre-25 January 2011, with their anticipated pace of growth accelerated by our deployment of OPIC funding.”
Commercial International Bank- Egypt:
The shares of Commercial International Bank- Egypt (CIB) (COMI.CA) sank 2.79% to close at EGP 28.26.
Talaat Moustafa Group
Shares of Talaat Moustafa Group (TMGH.CA) tumbled by 2.20% to conclude at EGP 4.00.
EFG-Hermes Holding:
The shares of EFG-Hermes Holding (HRHO.CA) inched lower 1.80% to finish at EGP 10.92.
Orascom Telecom Holding:
The shares of Orascom Telecom Holding (OTH) (ORTE.CA) sank 1.22% to close at EGP 3.25.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) declined by 0.56% to end at EGP 253.37.
