EGX 30 Starts Week Above 5600 Pts, OCI 1.72% Up
During Sunday opening session, the Egyptian Exchange (EGX) has posted early gains of EGP 3.14 billion as the capital market has amounted to EGP 385.596 billion, according to data compiled by Amwal Al Ghad at 11:03 a.m. Cairo time (09:03 GMT).
The main index, EGX30 surged by 1.09% to hit 5603.1 p. EGX20 went up by 0.78% to reach 6543.92 p.
Meanwhile, the mid- and small-cap index, the EGX70 climbed by 1.06% to hit 515.09 pts. Price index EGX100 hiked by 1.18% to reach 871.95 p.
Traded volume reached 10.772 million securities worth EGP 69.952 million, exchanged 2.304 thousand transactions.
This was after trading in 109 listed securities; 13 declined 81 advanced while 15 keeping their previous levels.
The EGX 30’s early upwards due to the fact that Egyptians and non-Arab Foreigners were net buyers seizing 62.94% and 34.38% respectively, of the total markets, with a net equity of EGP 6.817 million and EGP 7.521 million excluding the deals.
On the other hand, Arabs were net sellers seizing 2.68% of the total markets, with a net equity of EGP 704.517 thousand excluding the deals.
Leading Shares:
EGX’s leading shares witnessed unsteady performance.
Orascom Construction Industries:
Orascom Construction Industries (OCIC.CA) led EGX upwards as it jumped by 1.72% to hit EGP 293.00.
OCI reported Thursday a 28 percent drop in net income for the second quarter, in line with analyst forecasts, pulled lower by start-up costs at its Algerian and U.S. fertilizer plants.
Net income fell to $119.4 million from $165.2 million a year earlier, Egypt’s biggest listed company said in a statement, which also blamed a higher effective tax rate because of a bigger contribution to earnings from its European operations.
OCI, which announced a $1.4 billion fertilizer investment in the United States late on Wednesday, said droughts in that country had reduced yields, making it necessary for farmers to increase acreage.
“We expect strong demand for fertilizer products in the upcoming harvesting season and we expect prices to remain firm for the remainder part of the year,” Chairman Nassef Sawiris said in a statement on Thursday.
The company said it expected its new Sorfert Algeria business to begin exports this month after entering production and its Egyptian Fertiliser Company had completed a stoppage to overcome bottlenecks.
OCI has sought to attract projects from across the Middle East to offset a slowdown at home since Egypt’s leader was ousted in 2011.
The Group also announced Thursday that it will build a $1.4 billion fertiliser plant in Iowa and is buying a U.S. construction firm, as it targets growth outside its main Middle East markets, the company said on Wednesday.
The plant in the main U.S. corn-growing region will make between 1.5 and 2 million metric tons of products including ammonia, urea and urea ammonium nitrate annually, reducing U.S. reliance on imports, OCI said in a statement.
Construction is due to begin this year for completion by mid-2015 and will be funded using equity and bonds.
The Iowa investment comes after a sharp drop in the price of U.S. natural gas, a key input for fertilizer.
“It costs $100 to (import fertilizer) to Iowa on a $400 product,” Nassef Sawiris told Reuters in a phone interview. “The Iowa plant will keep that $100 dollars in its operating margin.”
Commercial International Bank:
Commercial International Bank- Egypt (CIB) (COMI.CA) surged by 0.92% to reach EGP 31.68..
EFG-Hermes:
EFG-Hermes Holding (HRHO.CA) rose by 0.79% to hit EGP 12.80.
Cairo Criminal Court, headed by Judge Mohamed Reda Shawkat, adjourned Saturday the consideration of the market manipulation case of which the sons of the ousted president Hosni Mubarak, Alaa and Gamal as well as EFG-Hermes CEOs Hassan Heikal and Yasser El Mallawany face charges alongside 5 other businessmen. The court was adjourned until Saturday 7/10/2012.
Orascom Telecom Holding:
Orascom Telecom Holding (OTH) (ORTE.CA) inched higher by 0.54% to hit EGP 3.70.
Orascom Telecom – OT announced Wednesday that it will go on completing the necessary procedures to go for the international arbitration against People’s Democratic Republic of Algeria in respect of the unlawful actions taken since 2008 by the Algerian government against Orascom Telecom Algerie (OTA) – Djezzy.
Khalid Al Leithy, Deputy Chief Finance Officer of Orascom Telecom – OT, said the company will continue completing the arbitration procedures so as to reach a solution with the Algerian government.
“If Vimpelcom reaches a settlement with the Algerian government, Orascom will not go for the International arbitration.” Al Leithy added
Leithy said talks between Vimplecom and the Algerian government on acquiring a controlling stake in Djezzy are continuing, but he noted that: “Orascom will not accept to give up the group’s right to manage its Algerian unit.”
Al Leithy also mentioned that both Orascom and Vimplecom seek to end all the pending issues with the Algerian government without giving up their legal and financial rights to manage Djezzy.
Citadel Capital:
Citadel Capital (CCAP.CA) went up by 0.28% to reach EGP 3.60.
Orascom Telecom Media & Technology Holding:
Orascom Telecom Media & Technology Holding (OTMT.CA) maintained its Thursday’s levels at EGP 0.57.
Talaat Moustafa Group:
Shares of Talaat Moustafa Group (TMGH.CA) fell by 0.21% to hit EGP 4.70.
