Egypt Shares Gain EGP14.5 billion in Week

Big 5

In a week, Egypt’s bourse posted vivid gains amounting to 14.5 billion Egyptian pounds boosted by the most major IPO by Arabian Cement Company and by the beginning of Egyptian expats’ vote on a new president.

Additionally, the main stock index – EGX30 soared by 4.2% in a week to close near 8555 points.

Egypt-based Arabian Cement Company’s initial public share offer is the first major listing on the Egyptian Exchange (EGX) since the 2011 political uprising. The company announced that its common stock will begin trading on the Egyptian stock market on Sunday, May 18, 2014.

Indices:

The Egyptian Exchange’s indices throughout last week trading sessions, the EGX30 jumped by 4.2% in a week, registering an increase of 342.38 points, ending Thursday’s transactions at 8553.43 points compared to 8211.05 points at the end of a week earlier.

The main gauge index registered its highest point on Thursday closing at 8553.43 points, whereas its lowest point recorded on Sunday at 8226.73 points.

In addition, the mid- and small-cap index, the EGX70 climbed by 2.5% closing at 620.8 points during Thursday’s session, compared to 605.76 points at the end of a week earlier. The price index, EGX100 also pushed up by around 2.5% concluding by 1083.09 points during Thursday’s session, against 1056.69 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 492.334 billion last Thursday, compared to EGP 477.778 billion at the end of a week earlier.

Turnovers & Traded Volumes:

Through the week, the trading volume hit around 1.2 billion securities, compared to 1.5 billion securities at the end of a week earlier. For the traded value, it reached EGP 6.7 billion against EGP 6.1 billion a week earlier.

Sectors Activity:

Financial Services excluding Banks sector was the most active sector through last week, recording a volume of trades of 375.4 million securities worth EGP 1.18 billion.

Telecommunications sector came second, attaining a volume of trades of 316 million securities worth EGP 567.5 million.

Construction and Materials reported third, with a volume of trades of 133.2 million securities worth EGP 985.6 million.

Real Estate was on the fourth position, getting a volume of trades of 116.2 million securities worth EGP 724.7 million.

Travel & Leisure sector came fifth, recording a volume of trades of 110 million securities worth EGP 252.3 million.

Industrial Goods and Services and Automobiles reported sixth, having a volume of trades of 72.1 million securities worth EGP 153 million.

Personal and Household Products sector was on the seventh position, with a volume of trades of 58.8 million securities worth EGP 324.1 million.

Food and Beverage reported eighth, attaining a volume of trades of 12.9 million securities worth EGP 76.4 million.

Banks took the ninth position, with a volume of trades of 10.4 million securities worth EGP 278.2 million.

Basic Resources reported tenth, recording a volume of trades of 8.8 million securities worth EGP 126.8 million.

Chemicals ranked eleventh, attaining a volume of trades of 2.1 million securities worth EGP 25.7 million.

At the bottom of the list, Healthcare and Pharmaceuticals sector reported twelfth getting a volume of trades of 2 million securities worth EGP 18.8 million.

Investors’ Activity:

Local investors led the market activity all through the week with 85.19%, followed by Foreign and Arab investors with 8.66% and  6.15%, respectively, after excluding the deals.

Foreign investors were the most active sellers during the week earning the value of EGP 57.45 million, after excluding the deals.

Arab investors were to buy by value of EGP 95.23 million, after excluding the deals.

Moreover, institutions seized 58.18% of total trading through the week; while individuals attained 45.82% . Institutions were the most active buyers during the week earning the value of EGP 390.50 million, after excluding the deals.

Market Remarks

Raya Holding Plans IPO for Subsidiary on Egypt Bourse

On Sunday, Egypt’s Raya Holding announced that its wholly-owned affiliate plans to launch its IPO on the local bourse.

Raya Co. for Call Centers – wholly-owned subsidiary of Raya Holding for Technology & Telecommunications (RAYA.CA) – is currently restructuring its units and is conducting studies required for listing on the Egyptian Exchange (EGX).

The subsidiary’s shares were listed on the country’s central depository system of Misr for Central Clearing, Depository & Registry (MCDR), effective as of May 21, 2014.

Since the overthrow of autocrat Hosni Mubarak in 2011, EGX has not witnessed any major  initial public offerings (IPOs).

Cairo Financial to Lead an IPO on Egypt Bourse in Q1/15

Cairo Financial Holding (CFH Holding) plans to manage an IPO for an Egyptian company into the local stock exchange, within next year, CEO Ashraf Salman said on Monday.

Speaking to Amwal Al Ghad, Salman said CFH will manage an initial public offering for a company working in the industrial sector into the Egyptian Exchange (EGX) within the first quarter of 2015. The capital of the industrial company is at value of EGP 250 million, he noted.

“Cairo Financial is preparing to increase its presence in the Egyptian market through expanding its activities within the upcoming phase.” Salman said.

Egyptian Banks See More IPOs Following Arabian Cement Share Sale

Egyptian investment banks expect at least two companies to sell shares to the public in the next 12 months after Arabian Cement Co. ended an almost four-year drought.

EFG-Hermes Holding SAE, Egypt’s biggest publicly traded investment bank, and CI Capital Holding, a unit of the largest listed lender Commercial International Bank Egypt SAE, each said they expect to help two companies offer stock.

“The interest in Egyptian equities and the Egyptian story is back,” Ahmed El Guindy, head of investment banking at EFG-Hermes, said in a phone interview last Wednesday with Bloomberg. “We are beyond the stage when people were talking about macro challenges. People are focused on the real investment stories.”

The military-backed interim government has received more than $15 billion in aid pledges from the United Arab Emirates, Saudi Arabia and Kuwait since Morsi’s ouster. EFG-Hermes’ co-Chief Executive Officer Karim Awad said in March that the investment bank had a “robust” pipeline for IPOs in Egypt.

“The success of Arabian Cement is going to encourage a number of other companies in Egypt to go through the IPO process,” , Hesham Gohar, managing director for investment banking at CI Capital, said in a telephone interview from Cairo also last Wednesday with Bloomberg. “It shows investors were comfortable to take on the risk, given the improving economic situation in Egypt.”

Arabian Cement to Begin Trading on EGX Next Sunday

Arabian Cement announced that its common stock will begin trading on the Egyptian stock market on Sunday, May 18, 2014.

The opening price will be the same as the placement execution price at 9 Egyptian pounds ($1.28) per share.

Egypt-based Arabian Cement Company’s initial public share offer, the first major listing on the Egyptian Exchange (EGX) since the 2011 political uprising, was 18.5 times oversubscribed.

The offer raised EGP 767 million ($108.7 million) with 85.2 million shares sold in the offer on Wednesday, placed at 9 Egyptian pounds ($1.28) per share.

On Tuesday, EGX Chairman Mohamed Omran told Reuters the oversubscription reflected traders’ appetite for any new stocks in the market, adding that the Cairo bourse was “ready to accept more offers”. In addition, Hesham Gohar, managing director for investment banking at CI Capital – which was co-bookrunner on the offer alongside EFG-Hermes – said the oversubscription “reflects the confidence of investors, especially foreigners, in the Egyptian economy.”

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