Despite Heliopolis Clashes, EGX Manages To Win EGP 1.9 Bln In Week
During the last week which witnessed the clashes between pro and against-president Morsi in the Presidential palace in Heliopolis, the Egyptian Exchange has posted gains of EGP 1.9 billion as the capital market has hit EGP 341.303 billion at the end of last week, compared to EGP 339.351 billion at the end of a week earlier.
The EGX has pared its gains over the week amid the clashes erupted on Wednesday between the president’s supporters and opponents in Heliopolis
Morsi’s constitutional declaration has sharply divided the country into supporters and opponents triggering controversies among political parties and the general public which in return have heighten the political tensions proceeded by Wednesday clashes.
The benchmark EGX 30 index edged higher by 0.64 % this week, representing a slight increase of 30.84 points, ending Thursday’s transactions at 4,838.51 points compared to 4,807.67 points at the end of last week.
Regarding current week trading, the index hit its highest point on Wednesday closing at 5,072.16 points, where its lowest point recorded on Monday at 4,824.56 points.
Companies’ Weekly Performance:
Commercial International Bank Egypt (COMI.CA) closed last week at LE 32.54, while closed on Thursday at LE 32.54, unchanged.
Stock highest close during the week came on Wednesday at LE 34.76, while the lowest close came on Monday at LE 32.63.
On Sunday, CIB announced the completion of the due diligence on the acquisition of a 38% stake in Al Arafa for Investment and Consultancies (AIVC.CA)’s Concrete Ready-Made Company.
Mohamed Talaat, Investor Relations Manager of Al Arafa, told Amwal Al Ghad that the acquisition deal is likely to be finalized and to come into effect before the end of the current year.
Talaat noted that the two parties are currently finalizing the tie-up procedures adding that the total shares of Concrete are valued at around EGP 400 million.
Furthermore, Talaat mentioned that Al Arafa is contributing to provide the necessary liquidity for Concrete so as to support the latter’s expansion plans in the GCC as well as EU markets such as Italy.
On Monday, CIB and Al Arafa for Investments and Consultancies announce the signing of the final agreements relating to CIB’s purchase of a 38% secondary stake in Concrete for Ready-Made Garments S.A.E. (“Concrete”), a subsidiary of Arafa Holding, at a total deal size of EGP 152 million for the purchased stake. Post-acquisition, Arafa will remain the major shareholder of Concrete with 52% stake.
This confirms what Amwal Al Ghad published the day before that CIB completed the due diligence to acquire 38% stake in Concrete.
Arafa Holding announced during the first quarter of this year receiving an offer from the reputable bank for the purchase of a 38% stake in Concrete. After completion of the due diligence process and the study of the offer by both Concrete and Al Arafa Holding managements, the offer had been accepted and final agreements have been signed with CIB for the purchase of a 38% secondary stake at a deal value of EGP 152 million in cash which is in line with the initial offer Arafa received early in the year.
On Thursday, EFG-Hermes raised CIB fair value to EGP44.9 from EGP41.0, and reiterate our Buy rating, with our FV implying 29% upside potential.
We have raised our 2012-15 earnings forecasts for CIB by c20% following significantly stronger-than-expected revenue growth in 9M2012.
Telecom Egypt (ETEL.CA) closed last week at LE 12.43, while closed on Thursday at LE 12.2, dipping by 2 % (LE 0.23).
Stock highest close during the week came on Wednesday at LE 12.42, while the lowest close came on Monday at LE 12.11.
On Monday, Naeem Holding cut Telecom Egypt target price to LE 16.6 per share after factoring in Q3 2012 results.
Naeem stated that, TE Q3 2012 results were solid adding that company’s share remains attractive as a strong cash generator, holding a large cash pile, and it expects it to maintain a high dividend payout ratio.
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 L.E 71,038,533.
Foreign investors were most active sellers this week by the value of L.E 45,027,500.
Arab investors chose also to sell by value of L.E 26,011,033.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 34.16 – 76.68 %.
While Institutions activity ranged during this week between 23.31 – 65.83 %.
