In Week, Egypt Indices Lose EGP14bn, EGX30 Dives

In a week, Egypt’s stock Exchange (EGX) encountered massive losses amounting to 14 billion Egyptian pounds (US$1.9 billion).

In return, the country’s main stock index, EGX30 pushed down by 2.8% in a week, with a decline of 263 points, ending Thursday’s transactions at 9196 points, versus 9459 points at the end of a week earlier.

The main gauge index registered its highest point on Sunday closing at 9533.74 points, whereas its lowest point recorded on Thursday at 9196.93 points.

In addition, the mid- and small-cap index, the EGX70 sank in a week by 3.5% closing at 613 points during Thursday’s session, compared to 635 points at the end of a week earlier. The price index, EGX100 dropped by 1.9% finishing at 1132 points during Thursday’s session, from 1154 points at the end of a week earlier.

Furthermore, the market capitalization closed at EGP 507.92 billion last Thursday, compared to EGP 521.925 billion at the end of a week earlier.

Turnovers: Higher

Through the week, the trading volume hit around 1.1 billion securities. For the traded value, it reached EGP 5.7 billion against EGP 5 billion a week earlier.

Investors’ Activity:

Local investors led the market activity all through the week with 80.36%, followed by foreign and Arab investors with 13.41% and 6.23%, respectively, after excluding the deals.

Foreign investors were the most active sellers during the week earning the value of EGP 74.14 million, after excluding the deals.

Arab investors were also to sell by value of EGP 54.74 million, after excluding the deals.

Moreover, institutions seized 52.22% of total trading through the week; while individuals attained 47.78%. Institutions were the most active buyers during the week earning the value of EGP 92.87 million, after excluding the deals.

Market Remarks

–         Cleopatra to Start Study on Egypt Bourse IPO by Mid-2015

Egypt’s largest ceramics maker, Cleopatra Group will conduct a study by mid 2015 in preparation for selling some of its shares in the local bourse, chairman Mohamed Abul-Enein announced.

Speaking to Amwal Al Ghad on Wednesday, the Egyptian business tycoon said the anticipated study would determine the amount of shares to be floated in an initial public offering on the EGX as well as demonstrate the listing requirements and procedures.

Listing on the Egyptian bourse is set to finance the Group’s strategy for the coming period to upgrade its factories and pump new tourist and real estate investments, Abul-Enein noted.

Cleopatra has recently injected new investments worth EGP 100 million (around US$14 million) so as to carry out new expansions and to upgrade the production lines of its factories.

In the light of its recent investments, Cleopatra is seeking to run its factories at maximum capacity in the coming period, the chairman said in an earlier statement to Amwal Al Ghad.

–         Orascom Development to Offer 10-15% of Egypt Subsidiary to Activate Trading on EGX

Orascom Development Holding AG filed with the Egyptian Stock Exchange (EGX) to offer 10-15% of its Egyptian subsidiary, Orascom Hotels and Development (OHD) (ORHD.CA).

ODH’s Board of Directors approved the offering of 10 to 15% of its Egyptian subsidiary, Orascom Hotels and Development (OHD) at a total equity value of EGP 3.37 billion (approximately US$ 470 million or CHF 455 million), to reactivate its trading on the EGX and comply with its listing rules and regulations. The 10-15% will be sold at a consideration of EGP 15.20 (approximately US$ 2.12, CHF 2.06) per share.

This offering comes as part of the Group’s monetization efforts, the proceeds of which shall be re-injected into OHD to support its ongoing operations and deleverage its balance sheet, ODH said in a brief on Thursday.

The Group has mandated CI Capital and Beltone investment banks as joint lead arrangers and book runners on this transaction. The necessary documentation and pricing has been filed with the EGX and is awaiting final approval.

–         13 Firms Joined Egypt Bourse and NILEX in 2014 – Official

Around 13 companies have joined Egyptian stock Exchange (EGX) and Bourse of SMEs (known as NILEX) during 2014, said bourse chief Mohamed Omran on Thursday.

Omran said the number of listed companies for the current year had surpassed the targeted amount of approving listing of 10 firms within the current year.

This is the highest annual rise in the number of companies enlisted in the EGX in years, the top official noted.

The stock market was hit hard by the political and economic instability which followed the overthrow of Hosni Mubarak in early 2011, but many investors now feel stability is returning.