Egypt Stocks Gain EGP5.6 billion in Week

By Yomna Yasser On Jul 12, 2014

Despite fuel prices hikes, and failure of Beltone/Sawiris-Hermes deal, Egypt’s stocks gain in week 5.6 billion Egyptian pounds.

The main stock index, EGX30 grew by 2.4% throughout trading sessions of last week, registering an increase of 199 points, ending Thursday’s transactions at 8457 points compared to 8258 points at the end of a week earlier.

The main gauge index registered its highest point on Wednesday closing at 8495.41 points, whereas its lowest point recorded on Monday at 8311.37 points.

Sawiris-Beltone alliance failed to reach a deal to acquire 20% a stake in Egypt’s biggest investment bank EFG-Hermes, said the market regulator chief on Monday.

According to the regulator chief Sherif Samy, the deal flopped after the bidders, Beltone Financial and Naguib Sawiris’ New Egypt Investment Fund refused to buy the offered amount of shares of 9.5% in EFG-Hermes (HRHO.CA).

In addition, the mid- and small-cap index, the EGX70 inched up by 1% closing at 606 points during Thursday’s session, compared to 600 points at the end of a week earlier. The price index, EGX100 also climbed by 1.9% concluding by 1070 points during Thursday’s session, against 1050 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 487.530 billion last Thursday, compared to EGP 481.893 billion at the end of a week earlier.

Turnovers & Traded Volumes:

Through the week, the trading volume hit around 813.4 million securities, compared to 461.5 million securities at the end of a week earlier. For the traded value, it reached around EGP 5.6 billion against EGP 3.7 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 307.9 million securities worth EGP 772.1 million.

Telecommunications sector came second, attaining a volume of trades of 195.1 million securities worth EGP 321.7 million.

Real Estate reported third, with a volume of trades of 108.8 million securities worth EGP 873.6 million.

Travel & Leisure sector was in the fourth position, getting a volume of trades of 65.3 million securities worth EGP 168.6 million.

Personal and Household Products sector came fifth, recording a volume of trades of 36.8 million securities worth EGP 164.9 million.

Industrial Goods and Services and Automobiles reported sixth, having a volume of trades of 34.5 million securities worth EGP 73.2 million.

Construction and Materials was on the seventh position, with a volume of trades of 21.9 million securities worth EGP 136.4 million.

Food and Beverage reported eighth, attaining a volume of trades of 12.8 million securities worth EGP 78.3 billion.

Banks took the ninth position, with a volume of trades of 12.8 million securities worth EGP 274.3 million.

Basic Resources reported tenth, recording a volume of trades 5.6 million securities worth EGP 75.1 million.

Healthcare and Pharmaceuticals sector ranked eleventh, attaining a volume of trades of 5.2 million securities worth EGP 124.1 million.

At the bottom of the list, Chemicals reported twelfth getting a volume of trades of 3.7 million securities worth EGP 51.1 million.

Investors’ Activity:

Local investors led the market activity all through the week with 88.74%, followed by foreign and Arab investors with 7.84% and 3.42%, respectively, after excluding the deals.

Foreign investors were the most active buyers during the week earning the value of EGP 141.50 million, after excluding the deals.

Arab investors were also to buy by value of EGP 56.58 million, after excluding the deals.

Moreover, institutions seized 63.64% of total trading through the week; while individuals attained 36.36%. Institutions were the most active sellers during the week earning the value of EGP266.98 million, after excluding the deals.

Market Remarks

– 9% of Hermes Shareholders Offer to Sell Their Stocks in Beltone-Sawiris Bid – EGX

Egypt’s Beltone Financial (BTFH) and billionaire Naguib Sawiris were offered shares by 9% of the shareholders in investment bank EFG Hermes (HRHO), Stock exchange chairman Mohamed Omran said on Monday.

Omran added that by the end of the optional tender offer on Sunday, the total offered shares were 54,431,076 million shares which represent 48 % of the shares that Beltone and Sawiris’s New Egypt Investment Fund were seeking worth 114,696,900 million shares.

He added that if the bid consortium wants to buy the offered amount, they must obtain the approval of Egyptians financial supervisory authority (EFSA).

The bid consortium is meeting to discuss whether to agree to buying the offered amount or not, and discussing the different scenarios whether they acquired the stake or not, said Osama Rashad, Investor Relations Manager

Beltone and Sawiris’s New Egypt Investment Fund had offered around $257 million for the EFG stake at EGP 16.00 ($2.24) per share, but an independent financial advisor set the fair share price at EGP 22.93.

– Beltone/Sawiris Failed to Acquire 20% Stake in EFG-Hermes – Market Watchdog

Sawiris-Beltone alliance failed to reach a deal to acquire 20% a stake in Egypt’s biggest investment bank EFG-Hermes, said the market regulator chief on Monday.

The bid consortium attracted offers for 54.4 million shares, or around 9.49% of EFG Hermes’ outstanding shares, at 16 Egyptian pounds; while they asked for 20% stake in the investment bank, Samy told Amwal Al Ghad in a phone interview.

– Egypt Bourse still in Talks with Etisalat over Listing Shares

Egypt is aiming to reach an agreement with UAE’s mobile operator Etisalat on listing its Egyptian arm’s shares in the local market within the upcoming period.

Egyptian stock Exchange (EGX)’s management is planning to hold talks in the coming period with a number of companies expressed keenness to list their shares in the local market, notably Etisalat Misr.

From this respect, EGX board member Soliman Nazmy stressed ongoing negotiations with Etisalat Misr to list its shares in the market, in the light of being on the top of the country’s telecommunications sector in addition to Telecom Egypt.