Egypt Turmoil Drags Stocks to Lose EGP1.3 bln in Week
As unrest mounts accompanied with the killings of 51 brotherhood supporters outside the Republican Guard headquarters in Cairo, Egypt’s stock market has incurred EGP 1.3 billion in a week.
The capital market has closed at EGP 354.060 billion on Thursday, compared to EGP 355.424 billion a week earlier.
Egyptian Exchange’s benchmark EGX 30 index fell by 1.1% this week, representing a decline of 57.81 points, ending Thursday’s transactions at 5276.73 points compared to 5334.54 points at the end of last week.
Through trading sessions of last week, the benchmark has hit its highest point on Wednesday closing at 5325.14 points, where its lowest point recorded on Monday at 5123.06 points.
Meanwhile, the mid- and small-cap index, the EGX70 inched up by 1.65% closing at 429 points during Thursday’s session, compared to 422.62 points.
The price index, EGX100 rose by 0.82% concluding by 734 points during Thursday’s session, compared to 728.91 points at the end of a week earlier.
Through last week sessions, the trading volume reached 748 million securities on Thursday, compared to 1.4 billion securities a week earlier, worth EGP 2.157 billion, against EGP 1.4 billion a week earlier.
Companies’ Weekly Performance Highlights:
Citadel Capital – (CCAP.CA) closed last week at EGP 3.03, while closed on Thursday at EGP 3.31, jumping by EGP 0.28 (9 %).
Stock highest close during the week came on Wednesday at EGP 3.34, while the lowest close came on Monday at EGP 3.05.
On Tuesday, Citadel’s Rift Valley Railways (RVR), the operator of the Kenya-Uganda railway, has launched a KES 800 million (more than USD 9.3 million) technology upgrade that includes global positioning system (GPS)-based software that centrally controls the movement of trains and cargo along the railway track.
The automated train warrant (ATW) software allows online visualization from an operations control center in Nairobi of the precise location of trains along the railway. It will replace manual management of crossovers at railway stations with satellite-enabled self-switching movement of trains.
“The introduction of satellite navigation technology to this core component of our operations means we will eliminate a lot of waiting time at stations by giving priority track access to trains carrying cargo and also allow us to handle larger fleets,” said Darlan De David, RVR group CEO.
“This platform enables us to tell customers exactly where their cargo is along the 2,352km railway track we manage,” De David noted. “This innovation gives RVR the ability to effectively manage asset quality, reliably schedule maintenance and help ensure consistently high standards of rail transportation to smooth trade in East Africa.”
Also on Tuesday, RVR has completed the building of 73 kilometers of new railway track between Mombasa and Nairobi costing US$20 million to improve the reliability and speed of cargo delivery by rail from Mombasa.
Completion of the railway modernization project has reduced cargo delivery time between Mombasa and Nairobi by six hours through rebuilding the most badly rundown sections, which were responsible for 60% of blockage time on the rail line.
“RVR’s US$ 20 million investment in building this new stretch of railroad is a significant milestone as this railway line had been ailing for lack of investment for over a decade prior to the concession,” said RVR Executive Vice Chairman Brown Ondego.
On Wednesday, Citadel Capital reported a standalone net profit of EGP 5.3 million and a 20.6% narrowing of its consolidated net loss to EGP 126.4 million in 1Q13.
For 1Q13, Citadel Capital reported a standalone net profit of EGP 5.3 million on revenues of EGP 20.2 million, compared with a net loss of EGP 30.5 million in the same quarter last year.
Revenues eased 17.2% from 1Q12 largely because equity investments in Egyptian Refining Company became non-fee-earning in advance of financial close on the project in June 2012.
On a consolidated basis, the firm reports a net loss of EGP 126.4 million in 1Q13 as opposed to a loss of EGP 159.3 million in the same quarter of the previous year, a narrowing of 20.6%.
Lower losses came primarily as the firm consolidated fewer losses from its Share of Associates’ Results in the first quarter. Putting aside additional impairments on intercompany balances related to the fully impaired National Petroleum Company, losses would have been at EGP 43.2 million, a 72% improvement from 1Q12.
EFG-Hermes – (HRHO.CA) closed last week at EGP 1.48, while closed on Thursday at EGP 1.71, soaring by EGP 0.23 (16%).
Stock highest close during the week came on Wednesday at EGP 1.72, while the lowest close came on Monday at EGP 1.49.
On Sunday, EFG-Hermes announced that company’s OGM approved in its meeting to transfer EGP 477.903.750 from fiscal year ending in 31/12/2012 profits to capital increase through distributing 1 free stock for every existing 5 held.
On the other hand, the company would delay EGM for another schedule as its quorum didn’t reached.
On Monday, Hermes BOD announced that it called the existing shareholders to attend its EGM meeting on Thursday 25th July 2013.
Regarding Investors’ Activity:
Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively.
Local investors were the most active buyers this week earning the value of EGP 193,949,178.
Arab investors chose also to buy by value of EGP 6,517,481.
Foreign investors were most active sellers this week by the value of EGP 200,466,659.
