EGX 30 Soars 1.27%, Ends Above 5110 Pts, Hermes 2.26% Up
During Tuesday closing session, the Egyptian Exchange (EGX) has doubled its early gains to eventually reach EGP 2.4 billion as the capital market has amounted to EGP 352.555 billion.
The main index, EGX30 jumped 1.27% to end at 5110.53 p. EGX20 climbed 1.50% to close at 5885.96 p.
Meanwhile, the mid- and small-cap index, the EGX70 inched higher 0.66% to finish at 448.04 p. Price index EGX100 went up by 0.82% to conclude at 775.14 p.
Egypt’s new, civilian president dismissed Cairo’s two top generals on Sunday and quashed a military order that had curbed Islamist Mohamed Morsi’s powers, in a dramatic move to free himself of some of the restrictions of military rule.
In a statement that came out of the blue, presidential spokesman Yasser Ali announced: “Field Marshal Hussein Tantawi has been transferred into retirement from today.” In his place as armed forces chief and defense minister, Morsi appointed General Abdel Fattah Al-Sisi, 57, from military intelligence.
Enan was replaced General Sidki Sobhi, 56, who headed the Third Field Army based in Suez, on the border with Sinai.
Both those pushed into retirement, whose positions may have been weakened by the border debacle last week in the Sinai desert, were appointed as advisers to the president.
Morsi’s spokesman called it “sovereign” decision by the head of state, and aimed at “pumping new blood” into an army which has shown signs of hoping to control the novice president. A fellow Islamist said Egypt could not go on having “two heads”.
Secular activists, wary of political Islam, nonetheless welcomed a “first step toward establishing a civilian state”.
Morsi himself later said: “The decisions I took today were not meant ever to target certain persons, nor did I intend to embarrass institutions, nor was my aim to narrow freedoms.
“I did not mean to send a negative message about anyone, but my aim was the benefit of this nation and its people,” he said, praising the work of the armed forces and saying his decision would free them to focus on their professional tasks.
But it was not clear how far the generals, members of the Supreme Council of the Armed Forces (SCAF), actually consented to a move that reveals a reordering of Egypt’s political forces as they all wait for a new constitution, shifting more powers towards Morsi and his long-suppressed Muslim Brotherhood.
“This clash between the new president and the military council was expected – but not this fast,” said analyst Gamal Soltan. “It can be considered a restructuring of the armed forces and an end to the role of SCAF in political life.”
By scrapping the army’s constitutional declaration, Morsi can also take on the legislative powers the generals had sought to keep for themselves in the absence of a parliament. In June, the military council, backed by judges, dissolved the Islamist-led assembly elected in January – a move Morsi has challenged.
Traded volume reached 108.207 million securities worth EGP 360.950 million, exchanged through 16.028 thousand transactions.
This was after trading in 165 listed securities; 42 declined 108 advanced while 15 keeping their previous levels.
Egyptians and Arabs were net sellers seizing 62.11% and 8.39% respectively, of the total markets, with a net equity of EGP 10.416 million and EGP 3.454 million excluding the deals.
On the other hand, non-Arab Foreigners were net buyers seizing 29.5% of the total markets, with a net equity of EGP 13.870 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective upwards except for the shares of Orascom Telecom Media & Technology Holding (OTMT.CA) which stayed at Monday’s levels at EGP 0.55.
EFG-Hermes Holding:
The shares of EFG-Hermes Holding (HRHO.CA) led EGX upwards as they surged by 2.26% to close at EGP 10.85.
EFG-Hermes shareholders meeting is excepted to be reconvened within this week upon the Egyptian Financial Supervisory Authority (EFSA)’s request so as to conclude its deal with QInvest.
Mona Zulficar, EFG-Hermes Board of Directors chairperson, had announced last Tuesday that upon EFSA’s request, EFG-Hermes will be reconvening its shareholders’ annual meeting within a week or a maximum of 10 days.
“During this meeting, we will provide some additional more detailed disclosures on the QInvest deal and the fate of the minority’s rights after signing the deal … we don’t have something to hide behind the scenes.”Zulficar added
Citadel Capital:
Shares owned by Citadel Capital (CCAP.CA) climbed by 1.98% to end at EGP 3.09.
Talaat Moustafa Group:
The shares of Talaat Moustafa Group (TMGH.CA) jumped by 1.65% to close at EGP 4.32.
Gehad El Sawafta, Vice Executive Officer of Talaat Moustafa Group Holding SAE (TMGH.CA), announced Sunday that the company has succeeded in selling around 50 % of its commercial malls in Madinaty during May and June with total value of about EGP 500 million.
He added that, the company succeeded in increasing its sales in the first half of 2012 to reach EGP 2.4 billion, compared to EGP 1.1 billion in the first half of 2011.
Furthermore, he pointed out that the company will focus within the coming period to deliver the remaining units.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) soared by 1.39% to finish at EGP 3.66.
Commercial International Bank:
The shares of Commercial International Bank- Egypt (CIB) (COMI.CA) rose by 1.32% to conclude at EGP 28.43.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) went up by 1.00% to close at EGP 275.61.
On President’s Decree:
CI Capital stated, in a recent report, that President Morsi’s move of changes in the military top brass on Sunday removed political deadlocks, consolidating his position, and providing room to deal efficiently with pressing economic issues.
Consensus building has been achieved with both SCAF and the street, via a power-sharing VP appointment.
A more politically stable environment and a pledged foreign aid of USD4.6bn come as positives; however low visibility on short-term solutions and current national security issues remain an overhang on the stock market.
