EGX 30 Inches Up 0.33% In IMF Talks Week

In a week which witnessed another round of talks over the US$4.8 billion loan between the Egyptian government and the International Monetary Fund’s technical team, the Egyptian Exchange has posted gains of EGP 167 million.

The capital market has hit EGP 361.559 billion at the end of last week, compared to EGP 361.392 billion at the end of a week earlier.

Egypt’s stock exchange benchmark EGX 30 index rose by 0.33% this week, representing an increase of 17.21 points, ending Thursday’s transactions at 5224.42 pts compared to 5207.21 pts at the end of last week.

Regarding current week trading, the index hit its highest point on Tuesday closing at 5242.55 pts, where its lowest point recorded on Wednesday at 5161.52 pts.

Companies’ Weekly Performance Highlights:

Orascom Construction Industries (OCIC.CA) closed last week at EGP 229.34, while closed on Thursday at EGP 238.27 (highest close), jumping by EGP 8.93 (4 %).

Stock lowest close during the week came on Sunday at EGP 229.07.

On Monday, OCI offered to pay EGP 7 billion to settle the dispute with tax authority over EGP 14 billion tax evasion since 2007, Youm7 & reported.

On the other hand, the authority is studying the offer saying that it didn’t reach a final decision about it as the original value of taxes amount to EGP 14 billion.

On Thursday, the EGX’s management has decided to suspend the trading on OCI’s stock awaiting clarifications about the current situation between the firm and the Tax Authority.

As a result, OCI sent a release to EGX stating that negotiations with Egyptian Tax Authority over EGP 14 billion worth of back taxes still ongoing. Accordingly, trading for the OCI’s stock was resumed.

Also on Thursday, The stock of Orascom Construction Industries (OCI) gained the most in more than three months on speculation that a possible tax settlement would pave the way for regulatory approval of a tender offer for the shares, Bloomberg reported.

Shares of Egypt’s biggest publicly traded company climbed 3.5 percent, the most since Dec. 16, to EGP 238.27 at the close in The Egyptian Exchange, trimming the stock’s quarterly decline to 5.6 percent.

The Egyptian Tax Authority will study an offer from OCI to settle a tax dispute for EGP 7 billion ($1 billion), Ahmed Abdel Rahman, head of the authority’s tax-evasion unit, said in a phone interview today. The settlement could help OCI secure regulatory approval for a transaction to transfer its Cairo- listed shares to NYSE Euronext Amsterdam, according to analysts including Hassan Kenawi, equities trader at Cairo-based HC Brokerage.

“Investors are speculating a settlement will help the tender offer go through,” Kenawi said by phone. “But there’s still a lot of uncertainty about how such an offer, if it’s accepted by the government, will affect tender offer price, and when it might take place.”

Orascom Telecom Media & Technology Holding (OTMT) – (OTMT.CA) closed last week at EGP 0.76, while closed on Thursday at EGP 0.75, dipping by EGP 0.01.

Stock highest close during the week came on Sunday at EGP 0.78, while the lowest close came on Wednesday at EGP 0.75.

On Sunday, Ahmed Khalaf, MENA Cables Executive Manager, announced that government authorities approved a final license granted to OTMT of an international internet cable inside Egypt, Anadolu Agency reported.

Khalaf added that a ministerial decision is released from Ministry of Transport declares the approval of OTMT project for a fees of EGP 10.8 million ($1.6 million).

It is worthy to note that, the company has finalized all cable parts starting with Italy, Gulf ( from Saudi Arabia through Amman) to connect India and Greece.

He added that OTMT by granting all needed approvals the company will be done with all Cable parts, knowing that its length is 900 Km starting from Alexandria till Zafarna  El-Sokna to be on usage after ending the Egyptian part.

Also on Sunday, OTMT denied reaching a final agreement with Telecom Egypt to extend its submarine MENA cable in Egypt with TE’s inland cables.

OTMT added, in a release responding to EGX inquiries that, it is in ongoing negotiations regarding the cable to find a solution that matches its strategy.

OTMT announced that company’s OGM approved BOD suggestion to distribute cash dividends of EGP 0.25 per share.

Also on Wednesday, Orascom Telecom Media And Technology Holding (OTMT) declared cash dividends of EGP 0,2577 per share payable on 04/04/2013 for shareholders as of 01/04/2013.

Maridive & Oil Services – (MOIL.CA) closed last week at $ 1.05, while closed on Thursday at $ 1.1 (highest close), jumping by $ 0.05 (5 %).

Stock lowest close during the week came on Sunday at $ 1.07.

On Sunday, Maridive reported consolidated financial results posting a net profit of $ 22,012,693 in 2012, compared to net profits of $ 42,112,444 in 2011.

On Monday, Beltone Financial maintained Maridive Hold recommendation given the limited foresight.

Beltone stated that, Maridive released its 4Q2012 financial results, with revenues coming in at USD93.23 million, -3.4% y-o-y, beating our estimate of USD83 million, and broadly in line with consensus estimates of USD96 million.

It added that, 4Q2012 net profit came in at USD23.67 million, versus a net loss of USD1.59 million in 4Q2011, and beating our and consensus estimates of USD13 million and USD14 million, respectively. The results imply a 4Q2012 GPM, EBITDA margin, and NPM of 47.1%, 48.5%, and 25.4%, respectively, versus respective figures of 9.8%, 9.5%, and -1.6% in 4Q2011.

On Tuesday, Audi Saradar retained Maridive fair value at $ 1.30 per share and recommendation to Accumulate the stock.

Audi stated that, Maridive reported surprising net income to shareholders of $ 16.6 million, well above our expectations of USD 1.8 million and consensus estimates of USD 3 million.

NI increased 63% on a quarterly basis as revenues increased by 50%.

The company reported losses of USD 1.6 million in Q4 11. As for 2012, the company’s net income dropped 74% attaining USD 7.5 million.

Net margin declined to 2.5% in 2012, from 7.3% in 2011. We positively read the improvement in Q4 performance, the generation of positive cash flow from operation (USD 53 million), and the fact that the company secured additional contracts.

Audi pointed out that, despite that the value of the company’s backlog is still below what we used to see before 2012, we believe that the trend of securing more contracts is going to continue, which will benefit the company.

Regarding 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 EGP 95,639,137.

Arab investors chose also to buy by value of EGP 14,101,282.

Foreign investors were most active sellers this week by the value of EGP 109,740,419.

Retail & Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 23.61 – 59.60 %.

While Institutions activity ranged during this week between 40.39 – 76.38 %.