EGX 30 Retreats 2.35%; Political Uncertainty Week
Egyptian Exchange benchmark EGX 30 index dipped by 2.35 % this week, representing a retreat of 114.63 points, ending Thursday transactions at 4,753.12 points compared to 4,867.75 points at the end of last week.
Regarding current week trading, the index hit its highest point on Sunday closing at 4,868.05 points, where its lowest point recorded on Wednesday at 4,745.50 points.
It is worth noting that, the market was closed on Monday on occasion of celebrating July 23 Revolution.
EGX30 started week and the first session in Ramadan in muted session after fluctuated performance and closed almost flat on Sunday to close at 4,868.05 points. Market trade volume reached 187,344,305 shares amounted to EGP 323,936,399.
The index ended in red after one day holiday and retreated by 1 % to close at 4,819.33 points on Tuesday. Market trade volume reached 298,759,922 shares amounted to EGP 534,920,980.
EGX30 extended negative performance for the second day and retreated by 1.53 % to close at 4,745.50 points on Wednesday. Market trade volume reached 123,413,042 shares amounted to EGP 219,637,848.
Egypt’s index reversed early loss and edged higher by 0.16 % to close at 4,753.12 points on Thursday. Market trade volume reached 168,352,625 shares amounted to EGP 958,098,443.
Companies’ Weekly Performance Highlights:
Egyptian Financial Group-Hermes Holding Company – (HRHO.CA) stock closed last week at EGP 11.09, while closed on Thursday at EGP 10.75 (lowest close), dipping by 3 % (EGP 0.34).
The highest close during that week came on Sunday closing at EGP 11.12.
On Wednesday, Egypt’s financial regulator has suspended a joint venture deal between Egyptian investment bank EFG-Hermes and Qatar’s Q-Invest, approved by shareholders on June 2, the state news agency said.
“The Authority approved the (shareholder) assembly in form but refused it in terms of content, procedures and decisions,” the head of the Egyptian Financial Supervisory Authority (EFSA) Ashraf El-Sharkawy was quoted as saying to the state news agency MENA.
EFSA has rejected decisions made at EFG’s annual meeting last month because the firm did not clarify various points regarding the deal including the fate of minority rights after it is completed, MENA cited Sharkawy as saying.
EFG must provide the required information and re-convene the shareholder meeting so that procedures for the deal can be completed, MENA cited Sharkawy as saying.
The EFSA was not immediately available to comment. EFG said earlier this month that the tie-up between the bank and QInvest was legally binding and could only be reversed through legal action.
EFG and QInvest sealed an agreement in May to form a joint-venture, in which state-backed QInvest would hold 60 percent.
On Thursday, the company announced in a statement that Egyptian Financial Supervisory Authority (EFSA) certified formally on Wednesday Hermes’ EGM minutes which was held on 2nd June 2012 and approved the QInvest transaction. However, on the substance EFSA had certain reservations, which according to EFSA, relate to additional disclosures that should have been put to shareholders attention.
During the above mentioned EGM, EFG Hermes Holding reported to its shareholders on the terms of the QInvest transaction. However, the company will call for another EGM in the near future to provide additional disclosure (as requested by EFSA) in compliance with its policy of full transparency.
The firm remains confident that the deal will close within the previously stated timeframe of Q3 2012.
EFG Hermes has a longstanding commitment to a robust corporate governance framework that both adheres to global best practices and meets or exceeds the legal and other requirements imposed by regulators in the markets in which it operates. As the largest investment bank in Egypt and the Arab world, the firm is moreover held to a strict international audit policy.
Citadel Capital – (CCAP.CA) closed last week at EGP 3.06, while closed on Thursday at EGP 2.93, dipping by 4 % (EGP 0.13).
Stock highest close during the week came on Sunday at EGP 3.06, while the lowest level recorded on Wednesday closing at EGP 2.91.
Egyptian private equity firm Citadel Capital said on Sunday its net loss in the first quarter had widened 43 percent from a year earlier to $26.4 million.
It said assets under management had risen 4.9 percent to $4.4 billion in the 12 months to end-March 2012.
“Setting aside the net effect of one-time fees related to Citadel Capital’s refinanced debt and the OPIC-backed facility, the firm would have recorded a 9 percent narrowing of its consolidated loss,” the company said in an emailed statement.
The company said that during the quarter it had drawn down $81.3 million from a $150 million facility it had received from United States’ Overseas Investment Corporation (OPIC).
On Tuesday, Citadel Capital announced that the deal to sell 100 % of National Petroleum Company Egypt Limited (NPC Egypt) to Canadian Sea Dragon was cancelled without neither fines nor penalty.
The company added, in a release sent to EGX that, the reason behind cancelling the deal is the uncertainty of date of completing the it due to changes in political and economic conditions domestically and abroad.
Orascom Construction Industries (OCI) – (OCIC.CA) closed last week at EGP 254.98, while closed on Thursday at EGP 252.21, representing a retreat of EGP2.77 (1 %).
Stock highest close during the week came on Sunday at EGP 254.8, while the lowest level recorded on Wednesday closing at EGP 248.2.
On Wednesday, BOD approved in its meeting to sell 153.075 Global Depositary Receipts (GDRs), representing 100 % of its treasury stocks, through the open market in London Stock Exchange (LSE).
Moreover, it announced that it will sell these treasury stocks during the period from 26/07/2012 till 25/08/2012.
On Thursday, NBK Capital issued a report on Orascom Construction Industries (OCI) defining the stock’s 12-month fair value at EGP 292.50, compared to its market price of EGP 248.20 and recommending an “Accumulate”.
Egyptian Company for Mobile Services (Mobinil) – (EMOB.CA) closed last week at EGP 125.56, while closed on Thursday at EGP 123.02, dipping by 2 % (EGP 2.54).
Stock highest close during the week came on Sunday at EGP 124.86, while the lowest level recorded on Wednesday closing at EGP 122.84.
On Sunday, Mobinil denied, for the second time, signing terms memo of a syndicated loan consists of a consortium of banks to arrange its loan.
It added, in a release sent to EGX that, it is periodically conducting talks with banks considering its finance but no material steps were taken in this issue.
On Wednesday, Mobinil announced that company’s financial results revealed a net loss of EGP 46,987,938 (unaudited) for the fiscal period ending in 30 June 2012, compared to EGP 85,749,058 loss in the comparable period.
On Thursday, Pharos Research said Mobinil’s business results were below their expectations for 2102, which stand at a net profit of EGP 52.2m. Moreover, they are also below consensus estimates.
It is worth noting that Mobinil (EMOB.CA, FV: EGP 79.2/share) reported a net loss of EGP 47.0m in H1-2012, compared to a net loss of EGP 85.7m recorded during the corresponding period a year earlier, as published earlier.
Six of October Development & Investment (SODIC) – (OCDI.CA) closed last week at EGP 16.66, while closed on Thursday at EGP 16.19 (lowest close), dipping by 3 % (EGP 0.47).
Stock highest level recorded on Sunday closing at EGP 16.53.
On Wednesday, SODIC announced that New Urban Communities Authority (NUCA) approved its request to extend the grace period granted to the company to execute the third and fourth phases of Allegria project in AlShiekh Zayed to be 5 years instead of 3 years.
The company added, in a release sent to EGX that, the third and fourth phases of Allegria project are in the final stages and is expected to be delivered during the coming months.
On Thursday, SODIC announced that Prime Minister Kamal Al-Ganzouri approved that General Authority for Investment and Free Zones’ (GAFI) will submit company’s land in New Cairo under dispute to the ministerial committee of dispute settlement in GAFI.
The company added, in a release sent to EGX that, procedures considering this issue is being conducted.
Sectors Performance:
The most active sectors all through the week were Telecommunications, Financial Services, Construction & Material, Real Estate and Banks.
Telecommunications sector achieved total traded value of EGP 398,529,718.
Financial Services came second in terms of performance, as it achieved total traded value of EGP 234,876,461.
Banks sector ranked third in terms of performance, as it achieved total traded value of EGP 162,670,992.
Regarding, Real Estate it achieved total traded value of EGP 156,187,440.
Finally, Construction & Material, as it achieved total traded value of EGP 119,985,189.
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 250,230,742.
Foreign investors were most active sellers this week by the value of EGP 249,270,532.
Arab investors chose also to sell by value of EGP 960,210.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 45.46 – 70.85 %.
While Institutions activity ranged during this week between 29.14 – 54.53 %.
