EGX 30 Retreats 8.7% In Week On Runoff Uncertain Results
Egyptian exchange main index EGX30 index sunk by 8.76 % this week, representing a retreat of 387.44 points, ending Thursday transactions at 4,031.60 points compared to 4,419.04 points at the end of last week.
Regarding current week trading, the index hit its highest point on Monday closing at 4,267.87 points, where its lowest point recorded on Thursday at 4,031.60 points.
It is worth noting that, Sunday was official vacation on occasion of presidential elections runoff.
EGX30 dropped 3.42 % on Monday to its lowest since Jan. 26, extending a decline after a weekend presidential election brought the country no closer to the stable democracy promised by its interim military rulers.
The index closed at 4,267.87. Market trade volume reached 70,340,776 shares amounted to EGP 1,551,304,022.
The index sank by 4.23 % on Tuesday dragged down by the country’s political turmoil to close at 4,087.45. Market trade volume reached 76,393,222 shares amounted to EGP 589,335,320.
Egyptian Exchange main index reversed early loss and rose by 0.51 % on Wednesday to end declines race and closed at 4,108.40. Market trade volume reached 77,042,503 shares amounted to EGP 300,382,647.
EGX30 ended week in red area and dipped by 1.87 % on Thursday and closed at 4,031.60. Market trade volume reached 60,852,104 shares amounted to EGP 232,067,699.
Companies’ Weekly Performance:
Citadel Capital (CCAP.CA) stock closed last week at EGP 2.56, while closed on Thursday at EGP 2.4 (lowest close), sinking by 6 % (EGP 0.16).
The highest close during that week came on Monday closing at EGP 2.48.
Last Thursday, investors in an Egyptian petroleum refinery project, led by Citadel Capital and Qatar Petroleum, have secured $3.7 billion in financing for the facility, the project operator told Reuters.
The financing, put together by private equity firm Citadel, includes a $1.1 billion equity investment and is backed by a $2.6 billion debt package, Egypt Refining Company (ERC) said in a statement. Project partners include the Egyptian government.
The ERC project is to produce more than 4.1 million tonnes of refined products and oil derivatives annually, including more than 2.3 million tonnes of Euro V diesel per year. This is expected to cut Egyptian diesel imports by up to 50 percent.
The ERC said the refinery, on the outskirts of Cairo, will contribute $300 million in direct benefits to the state and create jobs. It is set to start operating in 2016.
“(The project) will reduce present-day diesel import needs by 50 percent, improve air quality in the Greater Cairo Area (and) help reduce Egypt’s annual subsidy bill,” ERC said.
Egyptian Financial Group-Hermes Holding Company – (HRHO.CA) closed last week at EGP 9.99, while closed on Thursday at EGP 9.05 (lowest close), sinking by 9 % (0.94).
Stock highest level recorded on Monday closing at EGP 9.62.
On Monday, the acquisition deal between Planet IB Consortium and EFG-Hermes Holding Company – has reached a dead end as Plant conditions the due diligence review to complete the deal.
Ahmed El-Houssieny, CEO of Planet, stated that the company will not buy Hermes without due diligence, adding that an official source in Hermes said there’ll be no deal.
It is worth noting that, Planet IB announced earlier this month that it intended to offer 13.50 Egyptian pounds ($2.23) per share to buy the Cairo-based investment bank, Egypt’s biggest.
On Tuesday, EFG-Hermes announced that its Investment Banking division has raised $ 462 million for the equity component of Citadel Capital’s $ 3.7 billion Egyptian Refining Company (ERC) project.
This represents 42 % of the $ 1.1 billion equity component of ERC.
Karim Awad, Chief Investment Banking division of Hermes, stated that the success of this deal assures group’s capability of supporting foreign direct investment in Egypt and the Arab world.
Six of October Development & Investment (SODIC) – (OCDI.CA) closed last week at EGP 15.07, while closed on Thursday at EGP 13.34 (lowest close), sinking by 11 % (EGP 1.73).
Stock highest close during the week came on Monday closing at EGP 14.36.
On Monday, SODIC denied withdrawal of any of its lands in Shiekh Zaid City.
Considering land owned by SOREAL Co., a SODIC affiliate, in New Cairo; the company stated that it disclosed previously to EGX that it submitted a request to the Committee of Dispute Resolution in order to activate all its contracting commitments.
It added that, it didn’t receive any response considering this request.
Also on Wednesday, Egyptian luxury real estate developer SODIC’s profit is likely to be hurt by the cancellation of a land deal by a government authority, HC Brokerage said, cutting its price target on the stock by 6 percent.
SODIC said in April that the New Urban Communities Authority had canceled SODIC’s purchase of a plot for its Eastown project near Cairo.
The 860,000-square meters (9.3 million square foot) Eastown project comprises residential units, offices, boutiques and hotels, according to SODIC’s website.
“It would be difficult for SODIC to replace the Eastown land due to its prime location and attractive price,” HC wrote in a note to clients.
The company, which lost 193 million Egyptian pounds in 2011, could record a net loss of 200 million pounds in 2012 on possible impairment charges from Eastown, HC said.
HC cut its price target to 25.8 Egyptian pounds.
Egypt’s once-booming property market, a major driver of foreign investment and growth, has been left reeling by a string of legal rows over state land sales.
Former SODIC Chairman Magdi Rasekh, father-in-law of ousted President Hosni Mubarak’s eldest son, was sentenced in March for selling state land for less than the market value.
GB Auto (AUTO.CA) closed last week at EGP 20.54, while closed on Thursday at EGP 19.5, dipping by 5 % (EGP 1.04).
Stock highest level recorded on Monday closing at EGP 20.47, while the lowest close came on Wednesday closing at EGP 19.5.
On Monday, CI Capital stated that it believes that the news of introducing Westlake tires to Egypt is positive for GB Auto as it will help alleviate supply constraints that the company has been facing.
Ahmed Abdel Ghani, analyst at CI Capital, stated that he expects GB Auto to sell Westlake tires for EGP 75 million this year, which will change our estimates only slightly, as AUTO’s tires segment contributes an average of only 1.8% of the group’s total revenue over the last three years.
In addition, it will enhance AUTO’s tires market share.
Westlake is the second new Chinese representation this year, after introducing Geely in 1Q12.
This new offering will be an addition to AUTO’s portfolio, which currently includes the Turkish brand Lassa and the Japan’s Yokohama tires.
GB Auto’s announcement comes on the back of news that Egypt’s anti-dumping duties on tires of Chinese origin have been lifted.
On Tuesday, GB Auto announced that it expects 20-30 % increase in its sales during 2012, compared to sales achieved in 2011.
GB Auto added, in a release responding to EGX inquiries that, such predictions are based upon the recovery on demand.
Heliopolis Housing (HELI.CA) closed last week at EGP 13.87, while closed on Thursday at EGP 13.62, dipping by 2 % (EGP 0.25).
Stock highest level recorded on Monday closing at EGP 13.96, while the lowest close came on Wednesday closing at EGP 13.61.
On Wednesday, Heliopolis Housing obtained 8 licenses for residential complexes which would support its revenues in the coming fiscal year 2012/2013.
On the other hand, the company is currently studying to get bank loans of not less that EGP 50 million either from National Bank of Egypt (NBE) or Banque Du Caire in order to provide liquidity.
Also on Wednesday, Heliopolis Housing stated that it has sold in today’s public auction 16 shops in Obour City with total value of EGP 5.703.270.
Sectors Performance:
The most active sectors all through the week were Telecommunications, Real Estate, Financial Services, Construction & Material and Banks.
Telecommunications sector achieved total traded value of EGP 243,767,832.
Real Estate came second in terms of performance, as it achieved total traded value of EGP 152,192,646.
Financial Services sector ranked third in terms of performance, as it achieved total traded value of EGP 141,579,584.
Regarding, Construction & Material it achieved total traded value of EGP 135,079,397.
Finally, Banks, as it achieved total traded value of EGP 98,201,188.
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 54,501,402.
Arab investors chose also to buy by value of EGP 30,992,144.
Foreign investors were most active sellers this week by the value of EGP 85,493,547.
Retail and Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 7.84 – 52.30 %.
While Institutions activity ranged during this week between 47.69 – 92.18 %.
