EGX 30 Surges 0.22% Amid Euromoney Conference Week
Egyptian Exchange’s benchmark EGX 30 index edged higher by 0.22 % this week, representing an increase of 12.9 points, ending Thursday transactions at 5739.02 points compared to 5726.12 points at the end of last week.
Regarding current week trading, the index hit its highest point on Wednesday closing at 5755.40 points, where its lowest point recorded on Tuesday at 5566.89 points.
It is worth noting that, the market was closed last Sunday in lieu of 6th of October Victory vacation.
EGX30 suffered a sharp hit and dipped by 2.42 % to close at 5587.37 points on Monday. Market trade volume reached 156,865,586 shares amounted to EGP 903,503,702.
The Index shrunk early loss and retreated by 0.37 % to close at 5566.89 points on Tuesday. Market trade volume reached 164,397,372 shares amounted to EGP 750,869,870.
Main index EGX30 jumped by 3.39 % to close at 5755.40 points on Wednesday. Market trade volume reached 200,318,194 shares amounted to EGP 750,894,355.
EGX30 returned to red area to retreat by 0.28 % to close at 5739.02 points on Thursday. Market trade volume reached 145,520,785 shares amounted to EGP 919,985,232.
Companies’ weekly performance highlights:
Orascom Construction Industries – (OCIC.CA) closed last week at EGP 288.24, while closed on Thursday at EGP 277.39, dipping by EGP 10.85 (4%).
Stock highest close during the week came on Wednesday at EGP 280.29, while the lowest close came on Tuesday at EGP 273.21.
On Monday, OCI announced that it will not pay additional tax dues after selling one of its listed companies in the last period. It added that the capital gains from selling its entire stakes in the EGX-listed Orascom Building Materials Holding to Lafarge are tax exempt.
On Tuesday, the Egyptian Tax Authority has decided to call the Egyptian tycoon Onsi Sawiris and his son Nassif Sawiris to start interrogations regarding OCI’s evading to pay EGP 14 billion tax dues to the state.
Egyptian Tax Authority sources said the authority is working on finalizing a number of reports on 5 firms which Egypt’s President Mohamed Morsi has announced on Saturday their evading to pay around EGP 100 billion taxes to the state.
President Morsi stated last Saturday that Egypt is owed about EGP 100 billion by five companies adding that the state is in talks with these entities to have its dues. The President clarified that some of these dues arose from financial irregularities or tax evasions.
The sources added that the selling deal of OCI’s Orascom Building Materials Holding to French Lafarge in 2008 has been reviewed. The sources referred that the OCI’s selling deal has violated the law leading to tax fraud.
The tax sources further added that OCI had founded Orascom Building and had listed it in the EGX for a short while, transferring to it the Lafarge deal valued at EGP 71 billion.
Accordingly, the Egyptian Exchange Chairman Mohamed Omran said early Wednesday trading was suspended for OCI– (OCIC.CA)’s stocks awaiting the firm’s comments on the news published by Amwal Al Ghad regarding its EGP 14 billion tax fraud.
Commenting on the news published by Amwal Al Ghad, Omar Derwaza – Head of Investor Relations at Orascom Construction Industries (OCI) – has asserted on Wednesday midday that the Egyptian Tax Authority has called for holding a meeting with the Group officials without mentioning the main reasons behind that request. He expected that the meeting will discuss what the Egyptian President Mohamed Morsi had said during October war victory celebrations regarding the five EGX-listed companies which are accused of evading to pay the taxes through the last years.
Later on the Wednesday, the trading for the OCI was resumed.
Also on Wednesday, OCI announced that it has been awarded a EGP 532 million (US$ 87 million) contract to construct a new airfield at the Hurghada International Airport.
Awarded by the Egyptian Airports Company (EAC), the project’s scope includes the construction of a complete airfield composed of a four kilometer long runway, a four kilometer long taxiway, connecting taxiways, and all airfield lighting, power supply, and storm water drainage systems. The project is scheduled for completion in 26 months.
OCI has completed more than US$ 440 million worth of airport-related infrastructure over the last decade, including US$ 200 million worth of military airports furnished by an OCI/Contrack joint venture in Egypt. OCI is currently constructing US$ 270 million worth of infrastructure work at the King Abdulaziz International Airport near Jeddah, Saudi Arabia. The BESIX Group is also constructing Phase III of the New Doha International Airport (NDIA) Passenger Terminal Complex in Qatar for US$ 750 million.
Six of October Development & Investment Co. – (OCDI.CA) closed last week at EGP 21.18, while closed on Thursday at EGP 22.12 (highest close) upping 4 % (EGP 0.94).
Stock lowest close during the week came on Monday at EGP 20.11.
On Monday, Six of October Development & Real Estate Projects, 99.99 % owned by SODIC, announced that it signed EGP 120 million loan contract with Arab Investment Bank last Thursday 04/10/2012.
On Thursday, SODIC said it plans to launch its Westown Residences Phase VI within the coming few weeks. Phase VI includes around 100 residential units worth EGP 1.2 – 2 million.
Sources from the firm told Amwal Al Ghad that SODIC had succeeded during the last few days in marketing around 83% of Westown Residences Phase V’s total units of 98. Sources also noted that Westown Residences Phase V’s 98 units have been put up for sale on September 11th, 2012.
The sources further added that SODIC’s volume of sales has hit around EGP 1.3 billion during the last nine months. SODIC is seen a higher volume of sales by the end of the current year, they said.
Moreover, the sources mentioned that SODIC forecasts that the market will witness a remarkable growth through 2013.
Also on Thursday, SODIC announced seeking to increase its developable land portfolio either through competing lands offered by government or sharing with other firms.
Talaat Moustafa Group – TMG (TMGH.CA)’s stock closed last week at EGP 5.1, while closed on Thursday at EGP 4.75, dipping by 7 % (EGP 0.35).
Stock highest close during the week came on Wednesday at EGP 4.86, while the ;owest close came on Tuesday closing at EGP 4.57.
On Monday, Eng. Mohamed Nabih, Deputy Chairman of New Urban Communities Authority (NUCA), revealed that the government formed a committee to recount TMG’s Madinaty land in order to re-price it in order to obtain not less than EGP 9.7 billion from the whole project, Almasry Alyoum reported.
He added that, according to the verdict of amending the contract between NUCA and TMG, the government would count the unused lands in Madinaty project in order to re-price it according to the new prices which will be paid by TMG after re-pricing process.
Also on Monday, TMG announced that a new contract was signed in November 2010 between New Urban Communities Authority (NUCA) and Arab Projects and Urban Development Co., subsidiary of TMG, which includes keeping 7 % of total project and not less than EGP 9.979 billion after completing its entire phases.
The company added, in a release sent to EGX that, it partially appealed the part of re-pricing the unused part of Madinaty lands, adding that its session was set to 7th of November 2012.
National Societe Generale Bank (NSGB) – (NSGB.CA) stock closed last week at EGP 43.15, while closed on Thursday at EGP 46.26 (highest close), increased by 7 % (EGP 3.11).
Stock lowest close during the week came on Tuesday at EGP 43.06.
On Thursday, EFG-Hermes downgraded NSGB rating to Neutral from Buy.
NSGB’s share price has risen 46% since QNB’s announcement on 30 August of its interest in buying Socgen’s 77.2% stake in NSGB.
Hermes stated that, the current NSGB’s share price of EGP46.2 implies just 8% upside to our fair value (FV) of EGP50. We note that our EGP50 FV for NSGB accounts for a 30% acquisition premium on top of our going concern FV estimate of EGP 38.5.
It added that, it believes there is a high probability that the deal goes through, given QNB’s strong interest in entering the Egyptian market.
Sectors Performance:
The most active sectors all through the week were Real Estate, Financial Services, Construction & Material and, Industrial Goods and Services and Automobiles and Banks.
Real Estate sector achieved total traded value of EGP 459,996,472.
Financial Services came second in terms of performance, as it achieved total traded value of EGP 412,534,939.
Construction & Material sector ranked third in terms of performance, as it achieved total traded value of EGP 409,803,704.
Regarding, Industrial Goods and Services and Automobiles it achieved total traded value of EGP 375,698,547.
Finally, Banks, as it achieved total traded value of EGP 271,690,792.
Investors’ Activity:
Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively.
Arab investors were the most active buyers this week earning the value of EGP 59,522,193.
Local investors chose also to buy by value of EGP 37,161,825.
Foreign investors were most active sellers this week by the value of EGP 96,684,019.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 53.97 – 85.63 %.
While Institutions activity ranged during this week between 14.36 – 46.02 %.
