EGX 30 Opens Below 5500 Pts, OTMT 8.62% Down; Wednesday
During Tuesday opening session, the Egyptian Exchange (EGX) has incurred early losses of EGP 3.06 billion as the capital market has amounted to EGP 379.010 billion, according to data compiled by Amwal Al Ghad at 11:01 a.m. Cairo time (09:01 GMT).
The main index, EGX30 slumped by 1.13% to hit 5478.79 p. EGX20 dived by 1.40% to reach 6419.29 p.
Egypt’s benchmark share index rose 1.7% during Tuesday’s early session to its highest since June 2011.
Egypt’s Prime Minister Hesham Kandil has opened Tuesday’s early trading session. Kandil’s visit aims to convey a message to all investors that the Egyptian government’s top priority is to achieve economic growth. The prime minister also wants to explain that the government is seeking to improve and upgrade the capital market so that it would help to push the economic growth wheel forward.
Kandil has also emphasized on the key role played by the Egyptian Exchange’s plans for the firms to stimulate economic growth.
Osama Saleh – Minister of Investment, Dr. Ashraf Al-Sharkawy – the Chairman of the Egyptian Financial Supervisory Authority (EFSA), and Dr. Mohamed Omran – the EGX chairman had also attended EGX’s opening session.
“The EGX is actually a vivid stream of financing and pushing firms towards growth and expansions. It annually contributes with billions of Egyptian pounds towards supporting the development plans.” Kandil noted
Meanwhile, the mid- and small-cap index, the EGX70 inched lower by 0.85% to hit 500.88 pts. Price index EGX100 declined by 0.82% to reach 848.16 p.
Traded volume reached 8.188 million securities worth EGP 31.756 million, exchanged 1.757 thousand transactions.
This was after trading in 98 listed securities; 81 declined 11 advanced while 6 keeping their previous levels.
Egyptian and non-Arab Foreigners were net buyers seizing 81.83% and 10.87% respectively, of the total markets, with a net equity of EGP 1.258 million and EGP 152.853 thousand excluding the deals.
The main reason behind the EGX 30’s early slump was that Arabs net sellers seizing 7.3% of the total markets, with a net equity of EGP 1.411 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective downwards led by Orascom Telecom Media & Technology Holding (OTMT.CA) as it sank by 8.62% to hit EGP 0.53.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) dived by 1.26% to reach EGP 4.71.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) fell 1.07% to reach EGP 3.70.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) went down by 0.85% to reach EGP 31.40.
Capital Intelligence (CI), the international credit rating agency, announced Wednesday that it has affirmed Commercial International Bank (CIB)’s Long and Short-Term Foreign Currency Ratings (FCR) at ‘BB+’ and ‘B’, respectively.
Citadel Capital:
Citadel Capital (CCAP.CA) inched lower by 0.83% to hit EGP 3.58.
Mohab Agena, Head of Technical Analysis at Beltone Financial, said Thursday the stock of Citadel Capital faced resistance at EGP 3.4 , while having current support at EGP 3.2.
Agena advised investors to buy the stock near current price levels and to add more equities after breaking the current key resistance upwards.
Rising above the current level reflects one more step towards EGP 4 mark, a cash-ins area, the analyst said, defining the stop-loss point at EGP 3.1.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) decreased by 0.71% to reach EGP 282.00.
Mona El Shazly, analyst at Pharos Research, commented on the news that the Investors Relations of Orascom Construction Industries (OCI) stated that the methanol production line of OCI Beaumont in North America has commenced operations. The company will start selling its methanol production locally in the US as of September 2012.
El Shazly said this news is positive, adding that the new line is part of OCI’s expansion plan in the fertilizers segment in North America. OCI Beaumont is an integrated ammonia and methanol production facility located in Texas, North America. The ammonia plant has already commenced production in Q1-12 on low capacity, and is on track to reach its full capacity of 0.25m tons per annum (tpa).
The analyst indicated that the methanol plant has a production capacity of 0.75m tpa and was scheduled to commence operations in June 2012. However, the production has been delayed to Q3-12. OCI has signed a long-term off take agreement with Methanex Corporation, the world’s largest supplier of methanol, to sell a portion of its methanol production from the new line.
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) dipped by 0.08% to hit EGP 12.64.
EFG-Hermes board of directors announced the date of the shareholders’ extraordinary meeting.
The board of EFG-Hermes Holding invited Thursday shareholders to attend an extraordinary general meeting on Sunday, 16/09/2012. EFG-Hermes had said Sunday it will announce the date of its extraordinary shareholders meeting with a week.
Shareholders will discuss the board’s report on strategic partnership with Qatari QInvest . They will also look into the fair value report by Grant Thornton, as regards defining fair values of the companies subject to the partnership.
The meeting will be discuss selling Hermes’ brokerage stake to EFG-Hermes Qatar for $250 million.
A dividend plan at EGP 4 per share will also be discussed in the meeting, taking into consideration the relevant stock split or treasury shares repurchase.
The company’s shareholders will further discuss waiving trade mark EFG-Hermes to Hermes Qatar and other relevant activities.
Pharos commented on the news that EFG-Hermes Holding will hold its 2nd extraordinary shareholder meeting (EGM) on Sept. 16th.
Hany Genena, CFA, Head of Research, Pharos Securities Brokerage, stated, “We reiterate our negative views on the deal for current shareholders”. Genena stated that the cash dividend is akin to a liquidation dividend and any possible upgrade in the valuation of the cyclical investment banking, asset management and brokerage businesses due to the recent improvement in market conditions has already been capped by the deal terms and the call option held by QInvest on the remaining 40.0% stake.
