EGX 30 Ends Week Below 5830 Pts On Foreign Profit-Taking Deals
During Thursday closing session, the Egyptian Exchange (EGX) has gone through profit-taking phase as it posted losses of EGP 3.1 billion as the capital market has amounted to EGP 404.660 billion.
EGX indices were in red witnessing correction move.
The main index, EGX30 dived by 1.41% to close at 5827.91 p. EGX20 sank by 1.63% to end at 6870.56 p.
Meanwhile, the mid- and small-cap index, the EGX70 slumped by 1.64% to conclude at 553.52 pts. Price index EGX100 tumbled by 1.55% to finish at 914.73 p.
Traded volume reached 224.737 million securities worth EGP 903.348 million, exchanged through 44.230 thousand transactions.
This was after trading in 184 listed securities; 125 declined 52 advanced while 7 keeping their previous levels.
Egyptians were net buyers seizing 78.6% of the total markets, with a net equity of EGP 12.655 million excluding the deals.
On the other hand, non-Arab Foreigners and Arabs were net sellers seizing 15.22% and 6.18% respectively, of the total markets, with a net equity of EGP 6.883 million and EGP 5.772 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective downwards.
SODIC:
Six of October Development & Investment (SODIC) – (OCDI.CA) fell by 5.90% to conclude at EGP 24.54.
The Group said Thursday it was notified yesterday of an arbitration case filed on September 16th by Solidere Egypt, a wholly-owned subsidiary of Lebanon’s Solidere International, with claims of paying EGP 237.5 million plus interest and expenses.
In a filing posted on EGX website today, SODIC said that such an arbitration case is invalid, since it was filed after SODIC had filed an earlier arbitration case in the same dispute.
SODIC has refuted on Wednesday the news that Lebanon’s Solidere International has paid EGP 160 million so as to settle their current disputes over a piece of land spreading over 250,000 m2.
SODIC noted that the above-stated sum had already been paid by Solidere as per signed contracts and without any intention to end the current disputes between the two companies.
SODIC added that the arbitration lawsuit filed against Solidere as the latter did not fulfill its obligations as pursuant to the agreement signed between the two firms in June 2008 on Sheikh Zayed Project. SODIC said arbitration procedures are confidential.
Talaat Moustafa Group:
Talaat Moustafa Group (TMGH.CA) slumped by 3.53% to end at EGP 5.46.
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) declined by 1.78% to end at EGP 12.16.
Orascom Telecom Media & Technology Holding:
Orascom Telecom Media & Technology Holding (OTMT.CA) dived by 1.75% to conclude at EGP 0.56.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) dropped by 1.73% to finish at EGP 291.26.
OCI announced today that a 50/50 joint venture between BESIX and Orascom Construction, a 100% owned subsidiary of OCI, has been awarded a US$ 400 million contract to construct Majid Al Futtaim Properties’ Mall of Egypt. The mall will be located in the Sixth of October City outside of Cairo. The joint venture has been awarded the project on a lump sum fixed price basis and construction is scheduled for completion in approximately 34 months.
Mall of Egypt will be a 162,500 square meter shopping and leisure development that will include an indoor ski park, a 17-screen cinema complex, 380 retail outlets, a Carrefour hypermarket, an outdoor plaza, an amusement park, a car park, and other associated facilities. The ski park, Ski Egypt, will be modeled after the Ski Dubai component in Dubai’s Mall of the Emirates, a Majid Al Futtaim Properties development.
Peter Walichnowski, Chief Executive Officer of Majid Al Futtaim Properties, commented: “We are now in our 20th year of operations and, notably, have been in Egypt for ten of those years. Egypt’s strong economic fundamentals, such as its young and growing population, make it an attractive growth market. We are committed to building on our success in Egypt and investing in the country’s long-term economic growth.”
OCI Chairman and Chief Executive Officer, Nassef Sawiris commented: “This is the largest foreign investment in Egypt since the election of the new government. We have been very impressed by the efficient manner in which the new leadership reviewed required regulatory approvals for this project and we look forward to continuing to work together. The Mall of Egypt development marks an important milestone in Egypt’s economic recovery and signals a resurgence of private foreign investment in the country.”
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) dived by 1.55% to close at EGP 3.80.
The Group announced Tuesday its financial results posting a net profit of EGP 919 million during the first half of 2012, 81% down from a year earlier net profit of EGP 4.816 billion.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) decreased by 1.02% to end at EGP 34.06.
Citadel Capital:
Citadel Capital (CCAP.CA) kept Wednesday’s levels at EGP 4.33.
In a release to the Egyptian Exchange (EGX), Citadel Capital (CCAP.CA) said Thursday the Group is holding negotiations with different parties to divest Misr October Food Industries – Elmisrieen, a wholly owned subsidiary of Citadel’s Gozour.
Citadel noted that it is not the first time to receive buyout offers for Elmisrieen. The results of these talks will be duly announced once concluded, the Group added.
Worth mentioning, Citadel Capital’s stock went down during EGX early session by 1.85% to hit EGP 4.25.
The Algerian government said Wednesday it has started negotiations with Citadel Capital on acquiring a 49% stake in ASEC Algeria Cement, a subsidiary of ASEC Cement Holding (ACH), through right issue to increase the company’s capital which worth $60 million. ASEC Algeria plans to establish a new cement plant at a production capacity of 3.5 million tons in Gulfa city.
ASEC Cement Holding is Citadel Capital’s arm in cement sector.
Under Algerian regulations on banking finance, the firms that have been founded in Algeria or have local contributors shall obtain loans through Algerian banks only.
In case of reaching an acquisition deal with the Algerian government, ASEC Algeria shall re-make its financial study on the construction of two cement production lines as the government intends to inject further liquidity for the firm. ASEC’s current study targets obtaining loans of $180 million so as to establish the first production line of which 30% has been completed.
Ahmed Heikal Citadel Capital Founder and Chairman, said Tuesday the company will be injecting more investments in the African planet within the coming period. African countries such as Kenya and Mozambique enjoy key investment opportunities and political stability.
