EGX 30 Ends Above 5540 Pts, OCI 1.37% Up; Thursday
During Thursday closing session, the Egyptian Exchange (EGX) has extended its midday gains to eventually reach EGP 1.97 billion as the capital market has amounted to EGP 382.424 billion.
The main index, EGX30 surged by 0.58% to end at 5542.75 p. EGX20 went up by 0.47% to close at 6493.09 p.
Meanwhile, the mid- and small-cap index, the EGX70 climbed by 1.37% to conclude at 509.67 pts. Price index EGX100 rose by 1.14% to finish at 861.78 p.
Traded volume reached 178.442 million securities worth EGP 657.820 million, exchanged 34.873 thousand transactions.
This was after trading in 186 listed securities; 44 declined 127 advanced while 15 keeping their previous levels.
Egyptians and Arabs were net buyers seizing 79.39% and 5.31% respectively, of the total markets, with a net equity of EGP 31.083 million and EGP 15.105 million excluding the deals.
On the other hand, non-Arab Foreigners net sellers seizing 15.3% of the total markets, with a net equity of EGP 46.189 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed unsteady performance.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) led EGX upwards as it jumped by 1.37% to close at EGP 288.05.
OCI reported Thursday a 28 percent drop in net income for the second quarter, in line with analyst forecasts, pulled lower by start-up costs at its Algerian and U.S. fertiliser plants.
Net income fell to $119.4 million from $165.2 million a year earlier, Egypt’s biggest listed company said in a statement, which also blamed a higher effective tax rate because of a bigger contribution to earnings from its European operations.
OCI, which announced a $1.4 billion fertiliser investment in the United States late on Wednesday, said droughts in that country had reduced yields, making it necessary for farmers to increase acreage.
“We expect strong demand for fertilizer products in the upcoming harvesting season and we expect prices to remain firm for the remainder part of the year,” Chairman Nassef Sawiris said in a statement on Thursday.
The company said it expected its new Sorfert Algeria business to begin exports this month after entering production and its Egyptian Fertiliser Company had completed a stoppage to overcome bottlenecks.
OCI has sought to attract projects from across the Middle East to offset a slowdown at home since Egypt’s leader was ousted in 2011.
The Group also announced Thursday that it will build a $1.4 billion fertiliser plant in Iowa and is buying a U.S. construction firm, as it targets growth outside its main Middle East markets, the company said on Wednesday.
The plant in the main U.S. corn-growing region will make between 1.5 and 2 million metric tons of products including ammonia, urea and urea ammonium nitrate annually, reducing U.S. reliance on imports, OCI said in a statement.
Construction is due to begin this year for completion by mid-2015 and will be funded using equity and bonds.
The Iowa investment comes after a sharp drop in the price of U.S. natural gas, a key input for fertilizer.
“It costs $100 to (import fertilizer) to Iowa on a $400 product,” Nassef Sawiris told Reuters in a phone interview. “The Iowa plant will keep that $100 dollars in its operating margin.”
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) rose by 0.63% to finish at EGP 12.70.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) surged by 0.43% to finish at EGP 4.71.
Citadel Capital:
Citadel Capital (CCAP.CA) inched higher by 0.26% to end at EGP 3.59.
Orascom Telecom Media & Technology Holding:
Orascom Telecom Media & Technology Holding (OTMT.CA) sank by 1.72% to close at EGP 0.57.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) fell 0.27% to end at EGP 3.68.
Orascom Telecom – OT announced Wednesday that it will go on completing the necessary procedures to go for the international arbitration against People’s Democratic Republic of Algeria in respect of the unlawful actions taken since 2008 by the Algerian government against Orascom Telecom Algerie (OTA) – Djezzy.
Khalid Al Leithy, Deputy Chief Finance Officer of Orascom Telecom – OT, said the company will continue completing the arbitration procedures so as to reach a solution with the Algerian government.
“If Vimpelcom reaches a settlement with the Algerian government, Orascom will not go for the International arbitration.” Al Leithy added
Leithy said talks between Vimplecom and the Algerian government on acquiring a controlling stake in Djezzy are continuing, but he noted that: “Orascom will not accept to give up the group’s right to manage its Algerian unit.”
Al Leithy also mentioned that both Orascom and Vimplecom seek to end all the pending issues with the Algerian government without giving up their legal and financial rights to manage Djezzy.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) went down by 0.10% to conclude at EGP 31.39.
