EGX 30 Starts Week 1.72% Higher, Hits 5400 Level
During Sunday opening session, the Egyptian Exchange (EGX) has posted remarkable early gains of EGP 4.2 billion as the capital market has amounted to EGP 373.433 billion, according to data compiled by Amwal Al Ghad at 11:00 a.m. Cairo time (09:00 GMT).
The main index, EGX30 soared by 1.72%% to hit 5423.71 p. EGX20 went climbed by 1.70% to reach 6341.14 p.
Meanwhile, the mid- and small-cap index, the EGX70 inched higher 0.78% to hit 498.46 pts. Price index EGX100 rose by 1.02% to reach 839.61 p.
Traded volume reached 13.630 million securities worth EGP 67.715 million, exchanged 2.382 thousand transactions.
This was after trading in 110 listed securities; 12 declined 92 advanced while 6 keeping their previous levels.
The main reason behind EGX30’s upwards was that Egyptians and Arabs were net buyers seizing 57.89% and 3.8% respectively, of the total markets, with a net equity of EGP 1.673 million and EGP 1.248 million excluding the deals.
On the other hand, non-Arab Foreigners were net sellers 38.31% of the total markets, with a net equity of EGP 2.922 million excluding the deals.
Leading Shares:
EGX’s leading shares witnessed collective upwards except for the shares of EFG-Hermes Holding (HRHO.CA) as they dived by 5.28% to hit EGP 11.49.
EFG-Hermes Holding’s Shareholders Meeting:
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 Q-Invest on the remaining 40.0% stake.
Orascom Telecom Media & Technology Holding:
Orascom Telecom Media & Technology Holding (OTMT.CA) led EGX early upwards as it jumped by 8.77% to reach EGP 0.62.
Orascom Telecom Media & Technology Holding (OTMT.CA) reported Wednesday its financial results announcing a net profit of EGP 1.430 billion since the inception of the firm till June 30th, 2012.
Operation revenues hit around EGP 1.021 billion, other revenues reached EGP 4.160 million.
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) climbed by 4.69% to hit EGP 31.50.
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) soared by 2.32% to reach EGP 3.53.
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.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) surged by 1.30% to hit EGP 4.69.
In its MENA Strategy report, EFG-Hermes said Thursday TMG Holding, SIDPEC and Oriental Weavers are on its MENA Top 20 List.
The report issuer said that foreigners bought 20% of EUR513 million in one-year T-bills sold by Egypt on 28 August, and are also reportedly buying short-tenor EGP T-bills in small volumes.
“We maintain our Neutral weighting on Egyptian equities until this trend is confirmed, believing that we will not see a long-term convergence trade in the Egyptian market until real interest rates fall significantly,” the report issuer said.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) rose by 0.80% to reach EGP 279.80.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) went up by 0.55% to hit EGP 3.66.
