EGX 30 Falls 0.02%, OTMT 2.44% Down; Wednesday Closing

During Wednesday closing session, the Egyptian Exchange (EGX) has posted losses of EGP 46 million as the capital market has amounted to EGP 334.542 billion.

The main index, EGX30 inched lower 0.02% to 4819.5 p.  EGX20 edged down 0.33% to end at 5468.15 p.

Meanwhile, the mid- and small-cap index, the EGX70 surged 0.17% to finish at 421.83 p.  Price index EGX100 went up 0.02% to conclude at 727.1 p.

Traded volume reached 90.914 million securities worth EGP 204.665 million, exchanged through 12.032 transactions.

This was after trading in 162 listed securities; 90 declined 49 advanced while 23 keeping their previous levels.

Egyptians and non-Arab Foreigners were net buyers seizing 63.87% and 24.93% respectively, of the total markets, with a net equity of EGP 3.577 million and EGP 3.583 million excluding the deals.

On the other hand, Arabs  were net sellers seizing  11.2% of the total markets, with a net equity of EGP 7.161 million excluding the deals.

Leading Shares:

EGX’s leading shares witnessed collective downwards except for the shares of Orascom Construction Industries (OCIC.CA) which went up by 0.75% to close at EGP 254.13 and of Talaat Moustafa Group (TMGH.CA) surged 0.50% to close at EGP 4.03, set for the biggest daily gain in more than two weeks.

Talaat Mostafa Group Holding (TMG) issued a statement Monday confirming that the recommendation of the advisory committee to the State Judicial Council on invalidating the Madinaty land plot (33.6m sq m) contract is not binding to the court. It highlighted that the judicial panel stated it was a procedural error, which is the responsibility of the government and not TMG.

According to the company, TMG will present the documents to support that it had laid infrastructure on 97.0% of the land plot. TMG clarified that if the judge is to issue an unfavorable ruling, the case will be transferred to another department within the Higher Administrative Court concerned with judgment on the subject matter of the appeal.

Orascom Telecom Media & Technology Holding:

The shares of Orascom Telecom Media & Technology Holding (OTMT.CA) dived 2.44% to conclude at EGP 0.40.

EFG-Hermes issued a new report on Orascom Telecom Media and Technology (OTMT), lowering the stock’s fair value to EGP 0.63 ($0.52/GDR) from EGP 1.90 ($1.56/GDR), which represents a 54% upside potential for the local share. The investment bank also recommended ‘Buy’. The downgrade was attributed to the company’s super dividend at EGP1.05 per share. The payment date is 19 July. The EGX adjusted the closing price of July 16th to EGP 0.40 from EGP 1.45. OTMT GDR went ex-dividend on 12 July. As of end of today, OTMT will be dropped from the MSCI Standard indices (Egypt and EM) and added to the Small Cap Indices since it no longer satisfies the size criteria.

The NAV of the stock today is mainly comprised of the 75% stake in Koryolink which is valued at EGP 0.39/OTMT share or $333 million and the 5% stake in Mobinil which is valued at an implied 20% discount to the floor of the put option of EGP268.5/share and which yields EGP0.15/OTMT share. The under discussion telecom law may represent a risk to exercising the option if it stipulates the presence of a local partner. 

There will not be much appetite for the stock, given the absence of catalyst after the dividend was paid, the report issuer added. The strategy of the company post the Mobinil sale remains ambiguous and more clarity is required before the stock is rerated.

EFG-Hermes Holding:

The shares of EFG-Hermes Holding (HRHO.CA) edged down 0.45% to finish EGP 10.94.

Orascom Telecom Holding:

The shares of Orascom Telecom Holding (OTH) (ORTE.CA) went down 0.31% to end at EGP 3.23.

Commercial International Bank:

The shares owned by Commercial International Bank- Egypt (CIB) (COMI.CA) sank 0.17% to end at EGP 28.96.