EGX 30 Rose 0.28%, TMG 1.49% Down; Early Monday
During Monday early session, the Egyptian Exchange (EGX) has posted early gains to eventually reach EGP 1.3 billion as the capital market has amounted to EGP 375.315 billion, according to data compiled by Amwal Al Ghad at 11:00 a.m. Cairo time (09:00 GMT).
The main index, EGX30 inched higher by 0.28%% to hit 5439.94 p. EGX20 went up by 0.61% to reach 6392.38 p.
Meanwhile, the mid- and small-cap index, the EGX70 slumped by 0.24% to hit 497.94 pts. Price index EGX100 decreased by 0.07% to reach 839.76 p.
Traded volume reached 6.798 million securities worth EGP 30.552 million, exchanged 1.950 thousand transactions.
This was after trading in 112 listed securities; 67 declined 31 advanced while 14 keeping their previous levels.
The main reason behind EGX30’s rise was that Egyptians and non-Arab Foreigners were net buyers seizing 85.77% and 10.5% respectively, of the total markets, with a net equity of EGP 91.595 thousand and EGP 1.482 million excluding the deals.
On the other hand, Arabs were net sellers 3.73% of the total markets, with a net equity of EGP 1.573 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective downwards except for the shares of Orascom Telecom Media & Technology Holding (OTMT.CA) which climbed by 8.62% to hit EGP 0.63.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) sank by 1.49% to hit EGP 4.63.
Citadel Capital:
Citadel Capital (CCAP.CA) dived by 1.42% to reach EGP 3.48.
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.
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) inched lower by 1.05% to reach EGP 12.22.
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.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) went down by 0.55% to hit EGP 3.60.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) declined by 0.54% to hit EGP 31.43.
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.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) decreased by 0.45% to reach EGP 277.00.
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.
