EGX 30 Falls 2.7% In Week Amid IMF Loan Vague Vision
Egyptian Exchange benchmark EGX30 index dipped by 2.73 % this week, representing a decline of 160.92 points, ending Thursday transactions at 5726.12 points compared to 5887.04 points at the end of last week.
Regarding current week trading, the index hit its highest point on Sunday closing at 5821.82 points, where its lowest point recorded on Tuesday at 5611.77 points.
It is worth noting that, Reuters reported on Wednesday that, a trickle of foreign donor aid looks like Egypt’s best hope of averting a balance of payments crisis for now because many of the investors who fled the country last year are loath to return until the government seals a loan from the IMF.
A deal with the International Monetary Fund would lend vital credibility to a new Islamist-led administration desperate to revive inward investment that ground to a halt after last year’s popular uprising against Hosni Mubarak.
“Until the IMF deal is signed, you are still going to have a lot of people on the sidelines waiting for that stamp of approval and that policy backstop,” said Antony Simond of Aberdeen Asset Management, which is not investing in Egypt.
Main index EGX30 started week in red area to extend decline and retreated by 1.11 % to close at 5821.82 points on Sunday. Market trade volume reached 157,263,966 shares amounted to EGP 637,155,961.
EGX30 widened red gap to extend declines and dipped by 2.95 % to close at 5650.07 points on Monday. Market trade volume reached 232,133,645 shares amounted to EGP 897,976,621.
The Index extended declines and retreated by 0.68 % to close at 5611.77 points on Tuesday. Market trade volume reached 156,449,367 shares amounted to EGP 973,680,047.
EGX30 reversed declines gap and rose by 0.79 % to close at 5656.15 points on Wednesday. Market trade volume reached 113,369,632 shares amounted to EGP 534,647,004.
EGX30 extended gains and advanced by 1.24 % to close at 5726.12 points on Thursday. Market trade volume reached 183,124,937 shares amounted to EGP 1,707,196,207.
Companies’ Weekly Performance:
Citadel Capital – (CCAP.CA) closed last week at EGP 4.58, while closed on Thursday at EGP 4.07, dipping by EGP 0.51 (11%).
Stock highest close during the week came on Sunday at EGP 4.47, while the lowest close came on Tuesday at EGP 4.07.
On Monday, Citadel’s managing director said that the company could be an investor in Uganda’s proposed $2.5 billion oil refinery project, Reuters reported.
Uganda, east Africa’s third-largest economy, has said it intends to build a refinery once it starts producing crude oil, and it recently raised its estimated oil reserves to 3.5 billion barrels from 2.5 billion barrels.
Citadel secured $3.7 billion in financing for an Egyptian petroleum refinery project in June, and the firm’s managing director Karim Sadek said the company is now looking at refining potential deals in sub-Saharan Africa, including Uganda.
“Yes, we would be interested,” Sadek told Reuters in Nairobi, where he addressed a business club. “We know very well what’s happening on the Ugandan oil side and we’ve had discussions before.”
He said Citadel never invests in projects without a local partner, and he would not be drawn on the size of the investment the private equity group might make since the refinery plans are still in their infancy.
On Wednesday, Citadel reported consolidated financial results posting a net loss of EGP 283,484,937 for the period from 01/01/2012 till 30/06/2012.
Noting that, it posted net loss of EGP 291,812,682 for the same period of the previous year.
Additionally on Wednesday, Citadel Capital said its consolidated second-quarter net loss narrowed to 124.2 million Egyptian pounds ($20.36 million) from a previously stated 180.5 million pounds a year earlier, Reuters reported.
The firm, which focuses on the Middle East and Africa, said revenue during the quarter was a negative 63.8 million pounds compared to a previously stated 117.9 million pounds in the second quarter of 2011.
Assets under management increased by $228.8 million to $3.6 billion.
Orascom Development Holding (ODHN.CA) stock closed last week at EGP 5.25, while closed on Thursday at EGP 5.34 (highest close), increased by 2 % (EGP 0.09).
Stock lowest close during the week came on Tuesday at EGP 4.95.
On Sunday, Orascom Development announced that it celebrated last Saturday the successful reopening of Taba Heights Marina, after its temporary closing during the political events in the Middle East and North Africa in 2011.
Taba Heights Marina is part of Taba Heights, Orascom Development’s second self-sufficient resort town, located on the Sinai Peninsula. Spanning an area of 4.3 million sqm, Taba Heights features six operating hotels with 2,365 rooms.
Hesham Zaazou, Egypt’s recently appointed Minister of Tourism, stated that ‘Taba Heights Marina is essential in revitalizing tourism between Egypt and Jordan, accounting for a total of 350,000 tourist arrivals to Egypt annually.
Reopening it actively demonstrates the effective collaboration between various ministries towards the collective goal of supporting the recovery of tourism.’
He added that the marina’s reopening is testimony of the region’s safety and security, an essential prerequisite for the recovery of tourism.
Samih Sawiris commented that ‘Orascom Development is proud to be a partner supporting tourism in Egypt, especially in the region of the Sinai Peninsula which not only has immense symbolic national value but tremendous income generating potential.’ He further added that ‘the government’s tremendous support to successfully reopen Taba Heights Marina demonstrates the collective commitment to support tourism in Egypt’.
On Thursday, ODH announced that its BOD approved on Wednesday the public offering of up to 10% of the share capital of its Egyptian subsidiary Orascom Hotels & Development (OHD).
The reactivation of OHD shares revises an earlier decision to voluntarily delist OHD from the Egyptian Exchange (EGX).
Orascom Development expects to launch the public offering by mid November 2012, subject to final approval from the Egyptian Financial Supervisory Authority (EFSA) and other Egyptian regulatory authorities.
The offering is envisaged to take place in two tranches over a time period of three months. Reactivating OHD’s shares on the Egyptian Stock Exchange also allows to fulfill an EGX listing requirement to maintain a free-float of at least 5% of total share capital.
Sectors Performance:
The most active sectors all through the week were Real Estate, Financial Services, Construction & Material and, Telecommunications and Banks.
Real Estate sector achieved total traded value of EGP 675,365,451.
Financial Services came second in terms of performance, as it achieved total traded value of EGP 574,752,108.
Construction & Material sector ranked third in terms of performance, as it achieved total traded value of EGP 356,857,136.
Regarding, Telecommunications it achieved total traded value of EGP 273,897,649.
Finally, Banks, as it achieved total traded value of EGP 273,897,649.
Investors’ Activity:
Egyptians 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 151,051,167.
Foreign investors were most active sellers this week by the value of EGP 82,666,518.
Egyptians chose also to sell by value of EGP 68,384,649.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 29.07 – 69.39 %.
While Institutions activity ranged during this week between 30.60 – 70.92 %.
