EGX 30 Surges 2% In Week, US Delegation Visit Week

Egyptian Exchange benchmark EGX 30 index advanced by 2.15 % this week, representing an increase of 119.4 pts, ending Thursday transactions at 5662.15 pts compared to 5542.75 pts at the end of last week.

Regarding current week trading, the index hit its highest point on Wednesday closing at 5725.68 pts, where its lowest point recorded on Sunday at 5569.69 pts.

EGX30 shrunk early gains and rose by 0.49 % to close at 5569.69 pts on Sunday.

Market trade volume reached 247,177,293 shares amounted to EGP 1,499,679,392.

EGX30 reversed early loss and rose by 0.65 % to close at 5605.84 pts on Monday. Market trade volume reached 213,453,020 shares amounted to EGP 923,132,613.

The Index extended rally and advanced by 1.63 % to close at 5697.48 pts on Tuesday. Market trade volume reached 268,469,917 shares amounted to EGP 990,133,196.

 EGX30 extended rally and rose by 0.49 % to close at 5725.68 pts on Wednesday. Market trade volume reached 267,775,132 shares amounted to EGP 1,281,878,593.

The main index EGX30 ended rally and retreated by 1.11 % to close at 5662.15 pts on Thursday. Market trade volume reached 237,174,730 shares amounted to EGP 1,765,353,171.

Companies’ Weekly Performance:

Orascom Construction Industries (OCI) – (OCIC.CA) closed last week at EGP 288.05, while closed on Thursday at EGP 289.36 (lowest close), rising by EGP 1.31.

Stock highest close during the week came on Wednesday at EGP 294.51.

Egyptian investment authority GAFI approved on Monday the method Orascom Construction plans to use to value its business lines before splitting them into two companies, Orascom said on Monday.

It said it would now file documents to the Egyptian Financial Services Authority to issue shares in its fertiliser arm, the business being separated from its construction activities.

“The remaining regulatory requirements to complete the demerger are procedural in nature and are expected to be complete during the fourth quarter,” it said.

The Board of Orascom Construction Industries  – OCI (OCIC.CA) has approved the valuation differences for splitting the company’s activities, as per the report of General Authority for Investment and Free Zones (GAFI).

The Group Board members approved on Tuesday the reduction of the Demerging Company’s authorized capital from EGP 5 billion to EGP 4.5 billion, as well as issued capital from EGP 1044692095 to EGP 898435202 (divided into 208938419 common shares at EGP 4.30 par value each). The capital decrease was effected through reducing the Demerging Company’s share par value in return for issuing new shares for shareholders of the Demerged Company at the above-stated par value .

Articles No. 6 and 7 of Articles of Incorporation of the Demerging Company were amended accordingly.

Moreover, OCI board has also approved to ratify the articles of incorporation and statutes of the Demerged Company which shall have the name of Orascom Engineering and Construction, SAE, with head office at Nile Tower Building, South Tower, Cornish El Nil, Cairo, with authorized capital of EGP 1.462 billion and issued capital of EGP 146.256 million divided into 208.938.419 shares, at a par value of EGP 0.70. The first board of directors shall be composed of 10 members. The auditor of the Company shall be Ihab Fawzi Akl (Senior Partner at KPMG Hazem Hassan).

The Demerged Company’s listing structure shall be identical to the Demerging Company’s. The Demerged Company shall be listed on the Egyptian Exchange, with GDRs listed on the London Stock Exchange (LSE), and Level 1 ADRs on the Nasdaq’s OTC market.

Also on Tuesday, EFG-Hermes upgraded OCI fair value (FV) by 12% to EGP 325 per share mainly to account for OCI’s recent expansion in the US.

Moreover, Hermes maintained Neutral recommendation.

Six of October Development & Investment (SODIC) – (OCDI.CA) stock closed last week at EGP 24.58, while closed on Thursday at EGP 25.9, jumping by 5 % (EGP 1.32).

Stock highest close during the week came on Tuesday at EGP 26.71, while the lowest close came on Sunday at EGP 24.35.

On Wednesday, SODIC  announced Wednesday that the company has started adopting the legal procedures against Lebanon’s Solidere International. SODIC has submitted a request to Cairo Regional Centre for International Arbitration (CRCICA) for terminating the contract signed with the Lebanese company.

SODIC said Solidere had not fulfilled its obligations as pursuant to the agreement signed between the two firms in June 2008 on Sheikh Zayed Project.

SODIC demands appropriate compensations from Solidere International for breaching its contract with the firm. The compensation would be for preserving SODIC as well shareholders’ interests.

SODIC noted that such actions would not affect its current and future projects.  Units shall be submitted in time, the firm added.

Egyptian Company for Mobile Services (Mobinil) – (EMOB.CA) closed last week at EGP 147.51, while closed on Thursday at EGP 158.92, representing an increase of EGP 11.41 (8 %).

Stock highest close during the week came on Tuesday at EGP 164.77, while the  lowest close came on Sunday at EGP 149.56.

On Monday, Egyptian economic newspapers had published earlier on Monday CEO Yves Gauthier’s announcement that the company is considering  delisting from the EGX.

Monday after the company had sent a statement to the EGX announcing that CEO’s latest statement released by the newspaper regarding delisting from the EGX is not completely identical to what he said.

The company added, in a release responding to EGX inquiries, that it has no information about the main shareholder’s future plans regarding developing the Group’s capital structure. The Group emphasized its commitment to inform the EGX with the company’s upcoming updates.  

Ezz Steel – (ESRS.CA) closed last week at EGP 9.76, while closed on Thursday at EGP 11 (highest close) jumping 13 % (EGP 1.24).

Stock highest close during the week came on Sunday at EGP 14.1, while the lowest close came on Wednesday at EGP 14.05.

On Thursday, Ezz Steel reported a net profit of EGP 63.183 million during the first quarter of 2012, 292% higher than a year earlier net profit of EGP 16.126 million.

Net sales rose to EGP 5.194 billion during Q1/2012, compared to EGP 4.387 billion during Q1/2011.  Gross profit – after excluding the cost of sales – fell to EGP 475.124 million, compared to EGP 562.643 million.

Shareholders’ equity from Q1/2012 earnings reached EGP 18.144 million, compared to Q1/2011 losses of EGP 10.4 million.  Minority interest from Q1/2012 earnings hit EGP 45.039 million, compared to EGP 26.526 million a year earlier.

Basic earnings per share for Q1/2012 reached EGP 0.03, compared to losses of EGP 0.02 for Q1/2011.

Moreover, standalone business results for Q1/2012 revealed a net profit of EGP 6.339 million, compared to a net loss of EGP 25.025 million during Q1/2011.

Chairman Paul Chekaiban said he expected the company to maintain a “strong operational performance” in 2012 after achieving record sales volumes in the first quarter.

Sectors Performance:

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

Real Estate sector achieved total traded value of EGP 935,930,730.

Financial Services came second in terms of performance, as it achieved total traded value of EGP 904,836,026.

Construction & Material sector ranked third in terms of performance, as it achieved total traded value of EGP 528,026,730.

Regarding, Telecommunications it achieved total traded value of EGP 428,754,909.

Finally, Banks, as it achieved total traded value of EGP 368,360,651.

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 22,927,129.

Foreign investors were most active sellers this week by the value of EGP 21,302,857.

Arab investors chose also to sell by value of EGP 1,624,274.

Retail & Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 39.98 – 74.26 %.
While Institutions activity ranged during this week between 25.73 – 60.01 %.