As Volatility Haunts Market, Egypt’s Benchmark Falls 0.55% In Week

As volatility’s impact on market continues, the Egyptian stock market has encountered losses of around EGP 446 million in a week.

The capital market has closed at EGP 316.204 billion on Thursday, compared to EGP 316.650 billion a week earlier.

The Egyptian stock market has witnessed this week the Board Of Directors elections and the appointment of a new chairman and vice chairman.

Egypt has named Mr. Atef Yassin El-Sherif as the new EGX Chairman, in place of Dr. Mohamed Omran whose term shall expire next June 30th. Mr. Ashraf Kamal has been also selected to succeed Judge Khaled El-Nashar as EGX’s Vice Chairman.

Egyptian Exchange’s benchmark EGX 30 index inched down by 0.54% this week, representing a decline of 25.95 points, ending Thursday’s transactions at 4625.81 points compared to 4651.76 points at the end of last week.

Regarding current week trading, the index hit its highest point on Tuesday closing at 4709.25 points, where its lowest point recorded on Sunday at 4603.86 points.

Meanwhile, the mid- and small-cap index, the EGX70 rose by 0.14% closing at 354.53 points during Thursday’s session, compared to 354 points.

The price index, EGX100 fell by 0.245% concluding by 625.45 points during Thursday’s session, compared to 627 points at the end of a week earlier.

Through last week sessions, the trading volume reached 276.18 million securities on Thursday, compared to 432 million securities a week earlier, worth EGP 849.236 million, against EGP 1.355 billion a week earlier.

Mohsen Adel, Vice Chairman of EG-Finance and EGX board member said traders on the market are in full alert and apprehension facing a severe liquidity shortage amid the worrisome political developments.

“The traders are cautiously making selling and buying orders as the calls for June 30 protest to topple President Mohamed Morsi continue besides the Ethiopia’s dam crisis still left unsolved.” Mr. Adel added

Companies’ Weekly Performance Highlights:

Orascom Construction Industries – (OCIC.CA) closed last week at EGP 227.9, while closed on Thursday at EGP 224.89, dipping by EGP 3.01 (1 %).

Stock highest close during the week came on Wednesday at EGP 229.07, while the lowest came on Monday closing at EGP 224.24.

Last Friday, OCI Partners LP, formed by construction and fertilizer group OCI NV to own and operate a strategic methanol and ammonia plant in Texas, filed with U.S. regulators to raise up to $480 million in an initial public offering, Reuters reported.

OCI, which set up the limited partnership in February, said earlier this month that it would offer a minority interest in the plant through a U.S. IPO in the second half of the year.

OCI Partners LP plans to use the proceeds from the IPO to repay debt and finance a debottlenecking project that will increase its annual methanol production by 25 percent and its ammonia production by 15 percent.

On Wednesday, OCI N.V. announced that OCI minority shareholders attended in both EGM and OGM anonymously voted favorably for OCI N.V. offer.

Telecom Egypt – (ETEL.CA) closed last week at EGP 11.07, while closed on Thursday at EGP 11.1, upping by EGP 0.03.

Stock highest close during the week came on Tuesday at EGP 11.77, while the lowest came on Sunday closing at EGP 11.06.

On Tuesday, Dr. Amr Badawy, CEO of National Telecommunication Regulatory Authority, asserted that NTRA is going on steady and serious steps in the project of integrated license, Algomhoria newspaper reported.

He asserted that, NTRA is committed to the schedule which will end this month of setting price of the integrated license components in order to be submitted to Cabinet next month.

He pointed out that, Telecom Egypt will be granted the license within few moths according to the schedule.

On Thursday, an official source in Telecom Egypt asserted that the company is preparing its internal network to be ready for providing mobile services as soon as it gets the license, Algomhoria newspaper reported.

He added that, the company is cooperating with Ericsson Egypt in preparing the network.

He pointed out that, the step of test launch of first mobile call will be announced soon.

Finally, Telecom Egypt stated that, the company has a startup plan for mobile calls next July in case of getting the fourth mobile license.

Bisco Misr – (BISM.CA) closed on 6th June at EGP 40.5, while closed on Thursday at EGP 46 (highest close), jumping by EGP 5.5 (14 %).

Stock lowest close during the week came on Sunday at EGP 40.5.

On Sunday, Bisco Misr announced that its major shareholders rejected the letter of intent offered to acquire company’s entire shares.

Bisco Misr added that, company’s CEO Aref Abdel Rahman Haqqi, stated in Saturday’s meeting that the company received a number of letters of intent to acquire company’s entire shares as of 13 June 2013.

He added that, company’s major shareholders, who acquire more than 51 % stake in the company, rejected these letters.

Also on Sunday, Juhayna Food Industries confirmed that it submitted a non-obligatory initial tender offer to acquire Bisco Misr (BISM) shares.

The company added, in a release to EGX, that this issue still under study and no decision was yet taken.

On Monday, Juhayna announced that it received a letter from Bisco Misr to reject offer terms of the deal to acquire its entire shares.

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 30,151,161.

Foreign investors chose also to buy by value of EGP 1,321,934.

Local investors were most active sellers this week by the value of EGP 31,473,095.