In Week: Egypt Bourse Gains EGP3bn, EGX 30 Dips

In a week that coincides the arrival of a new year, Egyptian shares attained gains totaled EGP 3.03 billion.

The capital market reached EGP 428.859 billion last Thursday, compared to EGP 425.833 billion at the end of a week earlier.

Accordingly, the Egyptian Exchange’s benchmark index EGX 30 index advanced by 0.01% this week, registering a surge of 1.3 points, ending Thursday’s transactions at 6811.3 points compared to 6812.5 points at the end of a week earlier.

The main gauge index registered its highest point on Thursday closing at 6811.3 points, where its lowest point recorded on Sunday at 6774.49 points.

Meanwhile, the mid- and small-cap index, the EGX70  inched up by 1.9% closing at 548.63 points during Thursday’s session, compared to 538.24 points at the end of a week earlier. The price index, EGX100 also surged by 1.5% concluding by 932.35 points during Thursday’s session, against 918.5 points at the end of a week earlier.

Through the week, the trading volume has reached 626.1 million securities, compared to 750.892 million securities at the end of a week earlier. For the traded value, it hit EGP 1.814 billion against EGP 2.0904 billion a week earlier.

It is worth noting that, the Egyptian bourse was closed on Wednesday 01/01/2014 due to Banks’ Holiday on the occasion of the New Year.

Companies’ Weekly Performance Highlights:

Telecom Egypt – (ETEL.CA) closed last week at EGP 14.35, while closed on Thursday at EGP 14.65, upping by EGP 0.3 (2%).

Stock highest close during the week came on Tuesday at EGP 14.68, while the lowest close came on Sunday at EGP 14.2.

On Monday, Egypt’s telecoms regulator said it had agreed to issue a unified licence allowing a company to operate fixed-line and mobile networks, and had sent the details of its decision to the cabinet for final approval, Reuters reported.

The move would allow landline monopoly Telecom Egypt to offer mobile services.

“(The decision) will achieve needed development and balance in Egypt’s telecoms market,” the National Telecommunications Regulatory Authority said in a statement late on Monday.

“The details of the unified license have been sent to the cabinet’s economic committee in preparation for it being presented for ratification and final approval by the cabinet,” the statement said.

On Tuesday, Telecom Egypt confirmed that it is aware that the Board of Directors of the National Regulator (NTRA) approved the Total Telecom License scheme at their meeting held on Monday.

The board of the NTRA decided to submit the details of the license to the Economic committee of the Egyptian Cabinet, then to be raised to the Cabinet for final approval.

Telecom Egypt has not yet been addressed officially by the NTRA with regard to this matter.

Telecom Egypt will keep the market informed of any further updates.

Also On Tuesday, Ahmed Adel, telecommunications analyst at Cairo-based Naeem Brokerage told Bloomberg that “It should be positive for Telecom Egypt because it will grant it direct entry to the mobile market without any capital intensive investments in the network”.

“They will be able to work in the market for a year or two, making a subscribers base without any cost in network.”

Juhayna Food Industries – (JUFO.CA) closed last week at EGP 15.53, while closed on Thursday at EGP 15.49 (lowest close), dipping by EGP 0.04.

Stock highest close during the week came on Sunday at EGP 15.73.

On Monday, Egypt’s Juhayna Food announced that its affiliate the Egyptian Company for Food Industries (Egyfood) hadsecured a EGP 74 million loan from the Commercial International Bank (CIB) – Egypt.

The medium-term loan is designed to finance EgyFood’s new factory in Asyut governorate, seeking to import new equipments to meet the growing market’s needs. This comes within Juhayna’s investment scheme for the upcoming phase.

On Tuesday, the leading Egypt-based manufacturer specialized in the production, processing and packaging of milk, yoghurt, juice and juice concentrate Juhayna  decided to defer its plans to launch its new logistic centre for dairy products in Minya governorate  – which is set to be with EGP 50 million in investments – till the end of the first quarter of 2014.

Eng. Safwan Thabet – Chairman of Juhayna Food Industries – stated that the Minya logistic centre project comes within the Group’s plan to carry out industrial ventures in Upper Egypt with total investments amount to EGP 500 million.

Thabet has attributed the Group’s postponement decision to the ongoing unstable political and security situation in Egypt.

Investors’ Activity:

Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively.

Arab investors were the most active buyers this week earning the value of EGP 46,169,253.

Foreign investors were most active sellers this week by the value of EGP 45,423,340.

Local investors chose also to sell by value of EGP 745,914.

Retail & Institutions’ Activity:

Retail activity led the market all through the week as it ranged between 39.60 – 84.15%.

While Institutions activity ranged during this week between 15.84 – 60.39 %.