Egypt Stocks Gain EGP6.9bn in Week Propelled by Suez Canal Project

Big 5

In a week, Egypt’s stocks gained 6.9 billion Egyptian pounds powered by the new Suez canal national project.

Accordingly, the country’s main stock index, EGX30 registered highest scores since 2008, surging 2.6% in a week, with an increase of 234.57 points, ending Thursday’s transactions at 9386.57 points, versus 9152 points at the end of a week earlier.

The main gauge index registered its highest point on Thursday closing at 9386.57 points, whereas its lowest point recorded on Sunday at 9117.12 points.

Meanwhile, the mid- and small-cap index, the EGX70 climbed by 1.6% closing at 642.93 points during Thursday’s session, compared to 632 points at the end of a week earlier. The price index, EGX100 also pushed up by 2.1% concluding by 1149.54 points during Thursday’s session, against 1125 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 516.9 billion last Thursday, compared to EGP 510 billion at the end of a week earlier.

Turnovers less Lower

Through the week, the trading volume hit around 958.7 million securities, compared to 1.1 billion securities at the end of a week earlier. For the traded value, it reached around EGP 4.6 billion against EGP 4.7 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 278.9 million securities worth EGP 905.9 million.

Telecommunications sector came second, attaining a volume of trades of 235.6 million securities worth EGP 455.6 million.

Coming third in the list, Real Estate reported a volume of trades of 153.9 million securities worth EGP 1.1 billion.

Travel & Leisure sector was on the fourth position, getting a volume of trades of 61.2 million securities worth EGP 135.9 million.

Industrial Goods and Services and Automobiles sector came fifth, recording a volume of trades of 56.9 million securities worth EGP 145.1 million.

Personal and Household Products sector reported sixth, having a volume of trades of 54.7 million securities worth EGP 245.2 million.

Construction and Materials was on the seventh position, with a volume of trades of 46.4 million securities worth EGP 189.9 million.

Food and Beverage reported eighth, attaining a volume of trades of 37.7 million securities worth EGP 190.3 billion.

Banks sector took the ninth position, with a volume of trades of 11 million securities worth EGP 291 million.

Healthcare and Pharmaceuticals reported tenth, recording a volume of trades amounting to 11 million securities worth EGP 38.1 million.

Basic Resources sector ranked eleventh, attaining a volume of trades of 8.7 million securities worth EGP 123.3 million.

At the bottom of the list, Chemicals reported twelfth getting a volume of trades of 2.6 thousand securities worth EGP 33.4 million.

Investors’ Activity:

Local investors led the market activity all through the week with 85.81%, followed by foreign and Arab investors with 9.11% and 5.07%, respectively, after excluding the deals.

Foreign investors were the most active buyers during the week earning the value of EGP 305.55 million, after excluding the deals.

Arab investors were to sell by value of EGP 73.66 million, after excluding the deals.

Moreover, institutions seized 37.69% of total trading through the week; while individuals attained 62.31%. Institutions were the most active buyers during the week earning the value of EGP 332.05 million, after excluding the deals.

Market Remarks

–         Abu Dhabi Completes Clearing and Depository Tie-up Action with Egypt

Egypt has recently concluded a dual listing action with Abu Dhabi Securities Market, head of Egyptian Central Clearing, Depository and Registry House told Amwal Al Ghad Sunday.

MCDR chairman Mohamed Abdel-Salam further referred to ongoing testing of all the sides of the joint cooperation between MCDR and ADSM.

This comes after MCDR signed few months ago a memorandum of understanding with its Abu Dhabi counterpart to enforce a link-up framework designed to enable investors to gain access to shares in major companies on both markets.

–         Egypt’s Central Securities Depository Eyes Link-up with Morocco Next Month

Egypt’s Central Securities Depository (MCDR) is planning to establish a link-up action with its Moroccan counterpart (Maroclear) next month.

MCDR chairman Mohamed Abdel-Salam revealed Wednesday plans to meet with the Egyptian ambassador to Morocco within next month, aiming to activate a link-up market process with the Maroclear, the Central Depository of Morocco.

This comes in accordance with the Africa and Middle East Central Depositories Association (AMEDA)’s decree stressing the need for the GCC and North African countries to be linked with Egypt’s MCDR.

Abdel Salam also said through link-up processes with other central securities depository houses, his organisation would attract more investors and will expand the trading base not only for Egyptians but for all Arabs as well.

–         Egypt Bourse Approves Sawiris-led Nile Sugar’s IPO – Official

Egyptian stock exchange (EGX) approved the listing of Nile Sugar Company, a private beet-based sugar mill owned by the Sawiris family, chairman Mohamed Omran announced Thursday.
The company’s capitalisation exceeds EGP 750 million (US$104.8 million).
EGX welcomes new share listings, as this lures investors, Omran told state-owned news agency MENA. He added that several major companies in the real estate and telecommunications sectors will reveal initial public offering (IPOs) plans in the coming period.
Omran also said the bourse is gearing up for new listings of companies that will operate in the Suez Canal project, which will constitute a pivotal stage for the stock market.

According to the company’s website, Nile Sugar was set up in 2007 to build, operate and manage a beet root sugar extraction plant and refinery. The plant is located in Nubariyah, along the Alexandria desert road, 50 kilometres from the Port of Alexandria. The sponsors of Nile Sugar are Onsi Sawiris & Naguib Sawiris. Project’s investment is EGP 1.63 billion.