Egypt Shares Gain EGP5.6 Billion in Week, EGX30 Crosses 8700

Big 5

In a week which coincided with start of trading on Arabian Cement’s share, Egypt’s stocks gained 5.6 billion Egyptian pounds. The main stock index, EGX30 pushed up by 2.03% throughout trading sessions of last week, registering an increase of 174.11 points, ending Thursday’s transactions at 8727.54 points compared to 8553.43 points at the end of a week earlier.

In addition, the mid- and small-cap index, the EGX70 hiked by 0.5% closing at 623.66 points during Thursday’s session, compared to 620.8 points at the end of a week earlier. The price index, EGX100 also went up by 0.6% concluding by 1089.72 points during Thursday’s session, against 1083.09 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 497.892 billion last Thursday, compared to EGP 492.334 billion at the end of a week earlier.

Turnovers & Traded Volumes:

Through the week, the trading volume hit around 1.5 billion securities, compared to 1.2 billion securities at the end of a week earlier. For the traded value, it reached EGP 9.1 billion against EGP 6.7 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 468 million securities worth EGP 1.3 billion.

Telecommunications sector came second, attaining a volume of trades of 377 million securities worth EGP 726 million.

Real Estate reported third, with a volume of trades of 138 million securities worth EGP 851 million.

Personal and Household Products sector was on the fourth position, getting a volume of trades of 118 million securities worth EGP 406 million.

Travel & Leisure sector came fifth, recording a volume of trades of 113 million securities worth EGP 265 million.

Industrial Goods and Services and Automobiles reported sixth, having a volume of trades of 87 million securities worth EGP 214 million.

Construction and Materials was on the seventh position, with a volume of trades of 86 million securities worth EGP 586 million.

Banks reported eighth, attaining a volume of trades of 65 million securities worth EGP 2.3 billion.

Food and Beverage took the ninth position, with a volume of trades of 28 million securities worth EGP 115 million.

Basic Resources reported tenth, recording a volume of trades of 12.9 million securities worth EGP 196 million.

Chemicals ranked eleventh, attaining a volume of trades of 4.2 million securities worth EGP 53 million.

At the bottom of the list, Healthcare and Pharmaceuticals sector reported twelfth getting a volume of trades of 3.5 million securities worth EGP 23 million.

Investors’ Activity:

Local investors led the market activity all through the week with 86.11%, followed by foreign and Arab investors with 7.03% and 6.86%, respectively, after excluding the deals.

Foreign investors were the most active sellers during the week earning the value of EGP 19.24 million, after excluding the deals.

Arab investors were also to sell by value of EGP 4.91 million, after excluding the deals.

Moreover, institutions seized 46.25% of total trading through the week; while individuals attained 53.75%. Institutions were the most active buyers during the week earning the value of EGP 141.73 million, after excluding the deals.


Market Remarks

–        Arabian Cement’s Shares Start Debut on EGX

Arabian Cement Company’s shares finally started trading on Sunday with the presence of the Spanish ambassador in Cairo, the Egyptian bourse chief and key representative of the company as well.

The IPO of Arabian Cement was successfully 18.5 times oversubscribed as the total amount of purchase orders reached 460.5 million shares, while the volume of shares offered for sale was approximately 24.9 million shares. Accordingly, the allocation rate reached 5.4%.

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.

Arabian Cement Co. jumped more than 15 % on its trading debut after becoming the first company to sell shares in Egypt since the 2011 uprising that ousted President Hosni Mubarak. The benchmark EGX 30 Index has rallied about 70 % since the military ousted Islamist President Mohamed Morsi in July, making it one of the best-performing measures tracked globally by Bloomberg.

–        Spanish Envoy to Egypt Inaugurates 1st Day of Trading for Arabian Cement

On Sunday, Fidel Sendagorta del Campillo Spanish Ambassador in Cairo, Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX), and a delegation from Arabian Cement Co headed by chairman Generoso Bertolin, inaugurated the first day of trading of Arabian Cement company’s stocks by ringing the bell of the trading session today by the company’s Chairman.

The IPO of Arabian Cement was successfully 18.5 times oversubscribed as the total amount of purchase orders reached 460.5 million shares, while the volume of shares offered for sale was approximately 24.9 million shares. Accordingly, the allocation rate reached 5.4%.
In this respect, Dr. Omran, EGX Chairman mentioned that “The success of the subscription of the first IPO in EGX since 4 years reflects the return of the investors’ trust in the stock market and its listed companies. This success is a result of the efforts of regulatory bodies to encourage investment and boost the trust of investors. The market indicators confirm that it is currently ready for more successful IPOs to convince Egyptians to mobilize their savings in projects that create jobs and add to the productivity of the national economy.”

Moreover, Jose Maria Magrina- CEO of Arabian Cement Company commented on the first trading session of the company’s stocks saying “We are extremely thrilled with the start of trading on our stocks in the EGX. Having the initial public share offer 18.5 times oversubscribed reflects the position of Arabian Cement in the Egyptian market, as well as the confidence of Egyptian and Foreign investors in our stock. At the same time, this IPO is a testament to our strong roots in Egypt, supporting our market position during the coming period.”

–        Egypt Bourse Issues an Executive Decision to Organize Block Trading Mechanism

Also on Sunday, Egypt stock exchange market an executive decision to organise using the usage of the mechanism for Block Trading.

Dr. Mohamed Omran, Chairman of the Egyptian Exchange (EGX) issued an executive decision to organise using the mechanism for large volume transactions, or what is known as “Block Trading”. The measures was approved by EGX and the Egyptian Financial Supervisory Authority (EFSA) earlier this month, to be applied from May 18, 2014, and aiming to protect the market and its participants from the influence of the change in prices as a result of the huge trades that is traded in different prices from that of the market.

The block trading is intended to do transactions or deals valued at more than the daily average trading volume of the security shop and not less than 1% of the voting rights, and a minimum of a million Egyptian pounds, or those processes in excess of 10 million pounds and not less It’s the value of the counterparty for the amount of 50,0000 pounds.

The new decision obliges the brokerage firms which want to use the Block Trading to apply a request to the “Market Control” before the day of the deal by one working day to allow the applicant brokerages to register the buying commends according to the mechanism, Orders cannot be modified or deleted in the last hour before the deal according to the new system.
The new mechanism is able to register large volumes of deals to be operated automatically and with no time depending on the priority of the timing of registration only, and in case of non-completion of the implementation of the whole quantity, the broker can replace demand to continue to deal with effect from the next working day and until the completion of the implementation of the full amount regularly.

–        EGX: 1st Deal of Block Trading Mechanism worth EGP2.1bn on 6.5% of CIB

On Monday, The Egyptian stock exchange (EGX) witnessed, the first deal of Block Trading Mechanism.  The deal is worth 2.1 billion Egyptian Pounds on 6.5% of the shares of Commercial International Bank – Egypt sold by Actis to Fairfax Financial Holdings Ltd “Fairfax”.  Shares were priced at 36.34 EGP per share & volume of deal reached 58.54 Million shares.

–        Egypt’s Edita Food Industries said to Consider IPO

Alson on Monday, Edita Food Industries, an Egyptian snacks maker part-owned by London-based buyout firm Actis LLP, is considering an initial public offering as equity values rebound, four people familiar with the matter said.

Edita, whose products include the Twinkies cake in Egypt, is in talks with banks for the sale, the people said, asking not to be identified because the plans are private. The IPO may be valued at about USD 300 m, two of the people said.

The company is the largest independent snack food business in North Africa, Actis said in June, when the private equity firm bought a USD 102 m stake in Edita. It wasn’t immediately clear whether Actis is selling any of its holding.

–        Beltone braces to Run 4 Major IPOs on Egypt Bourse

Egypt-based Beltone Financial is preparing to manage 4 major initial public offerings (IPOs) in the next 5 months.

The first IPO to be managed is expected to be launched by next July, Beltone’s chairman Alaa Sabaa, told the state-run MENA news agency.

Sabaa explained that the 4 planned IPOs will be in favour of companies working in different sectors, yet he declined to reveal further details regarding the identity of those companies until they finish from the required studies.

Saba noted that the IPOs will be varied between different sectors, but he declined to reveal the identity of the companies that will sell shares to the public until they finish from the required studies.

Beltone has managed 3 giant IPOs in the past years, mostly recently Amer Group Holding (AMER.CA) IPO in 2010 worth EGP 1.2 billion, GB Auto (AUTO.CA) in 2007 worth EGP 1.2 billion and Raya Holding (RAYA.CA) in 2005 worth EGP 340 million.

The Egyptian Exchange granted last April Beltone Financial (BTFH.CA), the country’s first license for exchange traded funds (ETFs).

–        Egypt won’t Halt Bourse Trading Activties during Presidential Vote

The Egyptian Exchange (EGX) will not halt its trading sessions during the country’s upcoming presidential elections scheduled for May 26 and 27th, said bourse chief Mohamed Omran.

In a statement to state-owned news agency MENA on Wednesday, Omran said trading activities will proceed normally on  the EGX during the elections, adding that EGX employees will be given the opportunity to cast their votes through early leave.

The top official further added that Egypt is likely to witness improved economic conditions over the coming period, especially as regards foreign investments and national projects.

–        EGX Changes AWB Names to NBK Egypt, Effective as of May 22

The Securities Listing Committee at the Egyptian Exchange (EGX) approved on Wednesday changing the name of Al Watany Bank of Egypt (AWB), to National Bank of Kuwait – Egypt (NBK-Egypt).

The stock’s Reuters code will be changed to NBKE.CA instead of WATA.CA, effective as of tomorrow’s trading, Thursday, May 22, 2014.

National Bank of Kuwait Group (NBK), the largest financial institution in the country, recently announced in a press conference it rebranded its subsidiary in Egypt, Al Watany Bank of Egypt (AWB), under the new name NBK-Egypt.

–        Egypt, Dubai Market Regulators Ink MoU to Exchange Information

Egypt and Dubai market regulator signed an MoU on Wednesday, with the aim of exchanging the regulatory information between the two markets.

The Egyptian Financial Supervisory Authority (EFSA) signed a memorandum of understanding (MoU) with Dubai Financial Services Authority (DFSA), to deliberate the exchange of the regulatory information between the two markets.
In this respect, EFSA’s Chairman Sherif Samy said: The MoU came within the framework of the regulatory tasks assigned to EFSA, as to protect the investors’ transactions and enhance the mutual understanding in terms of technical and regulatory matters.”