EGX 30 Surges 1%, IMF Loan Talks Week

Egyptian Exchange’s benchmark EGX 30 index rose by 1 % this week, representing an increase of 52.12 pts, ending Thursday transactions at 5215.65 pts compared to 5163.53 pts at the end of last week.

The Egyptian Exchange has halted its trading sessions for two days; Sunday and Monday, on the occasion of Eid El-Fitr vacation. EGX resumed its usual trading Tuesday.

Regarding current week trading, the index hit its highest point on Thursday closing at 5215.65 pts, where its lowest point recorded on Wednesday at 5161.93 pts.

EGX30 started the first session after Eid vacation in green area to extended rally and rose by 0.85% to close at 5178.94 pts on Tuesday; the highest in more than five months. Market trade volume reached 110,140,356 shares amounted to EGP 2,109,161,808.

EGX30 ended rally which lasted for 6 consecutive sessions and edged lower by 0.33 % to close at 5161.93 pts on Wednesday; down from highest level in more than five months. Market trade volume reached 113,646,891 shares amounted to EGP 377,372,173.

EGX30 returned to green area again and rose by 1 % to close at 5215.65 pts on Thursday. Market trade volume reached 226,664,969 shares amounted to EGP 641,377,703.

Companies’ Weekly Performance:

Egypt Aluminum:

Egypt Aluminum (EGAL.CA) closed last week at EGP 19.57, while closed on Thursday at EGP 20.5 (highest close), jumping by 5 % (EGP 0.93).

Stock lowest close during the week came on Wednesday at EGP 20.05.

On Wednesday, Egypt Aluminum confirmed blaze in its green blocks production line, adding that it is under control, counting the casualties and investigating.

The company added, in a release to EGX responding to its inquiries, that this production line is insured against fire adding that production will not affected as the company has strategic stock for 4 months.

On Thursday, The Holding Company for Metallurgical Industries requested a technical report about Egypt Aluminum green blocks plant’s blaze in order to set the initial causes and casualties, Wadea Meshreky, Investment Adviser in the holding company.

Farouk Abdel Mawgoud, Investor Relations Manager of the company, revealed that the company started counting casualties adding that the initial investigations going on to define causes of the fire.

He added that, the company won’t suffer any financial burdens as the plant is fully insured against fire by Misr Insurance.

It is worth noting that, the blaze set in the whole plant which consists of 6 floors, adding that 4 suffocation cases among workers occurred.

Orascom Development Holding:

Orascom Development Holding – (ODHN.CA) stock closed last week at EGP 4.69, while closed on Thursday at EGP 4.74 (highest close), upping by 1 % (EGP 0.0.05).

Stock lowest close during the week came on Wednesday at EGP 4.51.

On Tuesday, Orascom Development stated that first indications show that during the first half-year 2012 it increased consolidated revenues in the range of 20-25% compared to the same period of last year.

Notwithstanding this significant growth, the group’s performance was impacted by high construction costs related to real estate which is expected to result in a reduced gross profit as compared to last year.

First indications show higher tax payments and the impairment of some investments in associates for the amount of CHF 10-15 million ($10.45 – 15.68 million). In sum, Orascom Development expects a net loss in the range of CHF 20-30 million compared to a CHF 16 million loss in the same period last year. The exact amount of the loss depends on the reversal of provisions.

The full set of half year results 2012 will be published on 29 August 2012 as earlier announced.

Telecom Egypt:

Telecom Egypt – (ETEL.CA) closed last week at EGP 13.47, while closed on Thursday at EGP 13.79 (highest close), representing an increase of EGP 0.32 (2 %).

Stock lowest close during the week came on Wednesday at EGP 13.64.

On Tuesday, Eng. Hani Mahmoud, Minister of Telecommunications and Information Technology, announced that he will hold a meeting with Telecom Egypt (ETEL) officials to discuss its interest of obtaining mobile virtual network license.

He added that, he’ll discuss the optimal solution for them to provide mobile services, whether to get the license or by offering another mobile license, as it might exit Vodafone operations in case it got the license.

On Thursday, Eng. Mohamed Elnawawy, CEO of Telecom Egypt, announced that the company incurred losses of EGP 100 million during 2011 due to repeated cables’ robbery, Al Ahram newspaper reported.

SODIC:

Six of October Development & Investment (SODIC) – (OCDI.CA) closed last week at EGP 19.11, while closed on Thursday at EGP 20.28 (highest close), representing an increase of EGP 1.17 (6 %).

Stock lowest close during the week came on Wednesday at EGP 19.22.

On Tuesday, SODIC announced that company’s BOD approved to sell 1 million treasury stocks, representing 1.10 % of its issued capital.

Also on Tuesday, EFG-Hermes stated that SODIC’s Q2/2012 pre-sales levels have declined from the robust EGP753 million achieved in Q1/2012, it noted that no new projects were launched during Q2/2012.

Hermes added that, SODIC reported gross pre-sales worth EGP322 million during 2Q2012, and cancellations of EGP38 million were within historical norms.

We think that a quick resolution to the Eastown dispute with the New Urban Communities Authority (NUCA) is now key for SODIC.

We could hear a decision from the Conflict Resolutions Committee (CRC) in the dispute within 60 days, as the company recently resubmitted its petition against New Urban Communities Authority (NUCA)’s withdrawal decision to the committee.

The company’s balance sheet is still solid, with cash and cash equivalents of EGP354 million and debt of EGP379 million at end-2Q2012.

Sectors Performance:

The most active sectors all through the week were Real Estate, Financial Services, Telecommunications, Banks and Construction & Material.

Real Estate sector achieved total traded value of EGP 265,920,577.

Financial Services came second in terms of performance, as it achieved total traded value of EGP 246,451,383.

Telecommunications sector ranked third in terms of performance, as it achieved total traded value of EGP 187,999,258.

Regarding, Banks it achieved total traded value of EGP 98,523,490.

Finally, Construction & Material, as it achieved total traded value of EGP 96,689,739.

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 29,544,150.

Foreign investors chose also to buy by value of EGP 1,171,837.

Arab investors were most active sellers this week by the value of EGP 11,142,034.

Retail and Institutions’ activity:

Retail activity led the market all through the week as it ranged between 27.60 – 69.81 %.

While Institutions activity ranged during this week between 30.18 – 72.39 %.