EGX Main Index Soars 16.8% This Week Amid Morsi’s Victory

Egyptian Exchange’s benchmark EGX30 index jumped 16.79 % this week, representing an increase of 676.99 points, ending Thursday transactions at 4,708.59 pts compared to 4,031.60 pts at the end of last week.

Regarding current week trading, the index hit its highest point on Thursday closing at 4,708.59 pts, where its lowest point recorded on Sunday at 4,166.32 pts.

EGX main index ended in green area and rose by 3.34 % on Sunday to close at 4,166.00 pts. Market trade volume reached 75,531,721 shares amounted to EGP 619,977,146.

The index ended in green area and jump by 7.59 % on Monday to close at 4,482.48 pts. Market trade volume reached 170,096,442 shares amounted to EGP 538,229,053.

EGX30 advanced by 2.89 % on Tuesday and closed at 4,612.14 pts. Market trade volume reached 153,128,687 shares amounted to EGP 565,177,002.

EGX30 extended gains and rose by 0.35 % on Wednesday and closed at 4,628.45 pts. Market trade volume reached 136,038,894 shares amounted to EGP 1,126,082,689.

Egyptian index EGX30 ended the last session of the week in green area and advanced by 1.73 % on Thursday to close at 4,708.59 pts. Market trade volume reached 168,251,996 shares amounted to EGP 1,069,060,863.

EGX-Listed Companies’ Weekly Performance:

EFG-Hermes Holding Company – (HRHO.CA) stock closed last week at EGP 9.05, while closed on Thursday at EGP 10.15, jumping by 12 % (EGP 1.1).

The highest close during that week came on Tuesday closing at EGP 10.28, while the lowest close came on Sunday at EGP 9.39.

On Thursday, Planet IB has closed EFG-Hermes acquisition file after Egyptian Financial Supervisory Authority (EFSA) statement about offers to buy listed companies.
Mahmoud Abdellatif, CEO of Planet, stated that his company will not go on in this acquisition deal after FSA statement.
He added that planet in currently studying new acquisition deals and its plans to establish investment bank still on its agenda.

Orascom Telecom Media And Technology Holding – (OTMT.CA) closed last week at EGP 1.3, while closed on Thursday at EGP 1.48 (highest close), jumping by 14 % (0.18).

Stock lowest level recorded on Sunday closing at EGP 1.35.

On Tuesday, OTMT announced that global depositary receipts representing interests in ordinary shares of the Company (GDRs) have been admitted to the official list maintained by the UK Listing Authority and to trading on the London Stock Exchange’s main market for listed securities under the ticker OTMT (“Admission”).

To mark the listing, Khaled Bichara, Chief Executive Officer of OTMT, joined Alastair Walmsley, Head of Equity Primary Markets at the LSE, to open trading in London.

The Market Open Ceremony was followed by a celebration where the London Stock Exchange welcomed OTMT to the market.

Khaled Bichara commented: “Today marks the final milestone of the demerger process as we have successfully completed our admission to AIM, therewith delivering on our promises to our shareholders.”

While Alastair Walmsley, Head of Equity Primary Markets at the LSE, said: “This listing demonstrates continued investor appetite for IPOs in London. Orascom TMT will benefit from the heightened profile, unrivalled liquidity and investor access that a GDR listing on the LSE offers.”

On Wednesday, OTMT may consider buying telecommunication assets in countries such as Libya, Syria and Yemen if the post-Arab Spring governments in those nations seek investments, outgoing Chief Executive Officer Khalid Bichara said.

“We’re looking at some markets post Arab Spring government-owned assets,” Bichara said in an interview in London on Tuesday.

“They’ll eventually have to find a way to manage them – either they’ll tender them out for sale or they’ll get companies to manage them. We’ll be ready for that whether through investing or through management contracts.”

Cairo-based Orascom Telecom Media, whose shareholders will meet this week to vote on a 1.05 Egyptian-pound dividend, is debt-free and would be able to fund investments with bank loans, said Bichara, who was in the UK. to mark the first day of trading in the company’s global deposit receipts on the London Stock Exchange. The company, controlled by Egyptian billionaire Naguib Sawiris, is looking to grow its cables business.

Housing & Development Bank (HDBK.CA) closed last week at EGP 12.57, while closed on Thursday at EGP 11.87 (highest close), jumping by 12 % (EGP 1.3).

Stock lowest close during the week came on Sunday closing at EGP 10.72.

On Wednesday, BOD approved to sign Memorandum of Understanding with Libya’s Bank of Commerce & Development in offering a number of banking and real estate services.

On Thursday, CI Capital stated that it believes that Housing & Development Bank’s signing MoU with Libya’s Bank of Commerce & Development (BCD) would have a positive impact on HDB.

Yasmin Ghanem, analyst at CI Capital, stated that in 2012, Libya is set to become the Middle East’s fastest growing economy; with a GDP growth of 70%, as per the International Monetary Fund’s (IMF) estimates, as Libya is currently re-building its infrastructure.

BCD is one of the Libya’s leading private financial institutions, mainly after the Qatar National Bank (QNB) acquired a 49% stake in it, early in 2012, for an undisclosed amount.

Talaat Moustafa Group Holding (T M G Holding) – (TMGH.CA) closed last week at EGP 3.51, while closed on Thursday at EGP 4.38 (highest close), soaring by 25 % (EGP 0.87).

Stock lowest level recorded on Sunday closing at EGP 3.75.

On Monday, TMG said the country’s appeals court will on July 30 examine its appeal of a six-month sentence against its Chairman and Managing Director Tarek Moustafa for the alleged sale of a property unit to more than one client, Bloomberg reported.

Talaat Moustafa surged 9.9 percent to 4.12 pounds, poised for the biggest daily gain in more than two years.

On Thursday, EFG-Hermes reiterated, in a recent study, TMG Buy rating and maintained fair value at EGP 8.9/share.

Hermes stated that, the recent correction of the Egyptian stock market triggered by political developments has brought the price of TMG down to very attractive levels trading at a 65% discount to book value.

It added that, it gave ten reasons why we believe now is a good time to Buy TMG shares.

Our core argument is largely centred around: first, the fact that the company’s operations remain largely resilient to political developments, second, both real estate demand and prices stand to benefit from devaluation and inflationary pressures, both are expected to persist over the short to medium term.

Sectors Performance:

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

Financial Services sector achieved total traded value of EGP 802,858,040.

Telecommunications came second in terms of performance, as it achieved total traded value of EGP 570,264,978.

Real Estate sector ranked third in terms of performance, as it achieved total traded value of EGP 280,852,700.

Regarding, Construction & Material it achieved total traded value of EGP 273,920,323.

Finally, Banks, as it achieved total traded value of EGP 179,937,015.

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 315,862,203.

Local investors chose also to buy by value of EGP 173,862,832.

Foreign investors were most active sellers this week by the value of EGP 489,725,035.

Retail and Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 21.69 – 64.72 %.

While Institutions activity ranged during this week between 35.27 – 78.30 %.