In Week of Apprehension For Anti-Morsi Protest, Egypt’s EGX30 Surges 1.3%

In a week of anticipation for the anti-regime mass demonstrations next June 30, Egypt’s stock market has managed to post gains of EGP 3.3 billion. The Egyptian Exchange has halted multiple-session losses backed by the final regulatory approval of the OCI N.V.’s tender offer for Orascom Construction Industries – OCI S.A.E. (OCIC.CA).

The capital market has closed at EGP 319.51billion on Thursday, compared to EGP 316.650 billion a week earlier.

Egyptian Exchange’s benchmark EGX 30 index surged by 1.28% this week, representing an increase of 59.28 points, ending Thursday’s transactions at 4685.09 points compared to 4625.81 points at the end of last week.

Regarding current week trading, the index hit its highest point on Thursday closing at 4685.09 points, where its lowest point recorded on Sunday at 4524.73 points.

Meanwhile, the mid- and small-cap index, the EGX70 inched up by 1.07% closing at 358.35 points during Thursday’s session, compared to 354.53 points.

The price index, EGX100 fell by 0.245% concluding by 639.68 points during Thursday’s session, compared to 625.45 points at the end of a week earlier.

Through last week sessions, the trading volume reached 293.797 million securities on Thursday, compared to 276.18 million securities a week earlier, worth EGP 847.41 million, against EGP 849.236 million a week earlier.

Egypt Regulator Gives Nod To OCI N.V.’s Tender Offer

OCI N.V. announced Tuesday evening that it has received approval from the Egyptian Financial Supervisory Authority (EFSA) to launch its proposed tender offer for Orascom Construction Industries’ (OCI S.A.E.) (OCIC.CA) outstanding ordinary shares listed on the Egyptian Exchange (EGX).

OCI N.V. will offer all shareholders of OCI S.A.E. an Exchange Offer to convert in to OCI N.V. as well as a cash alternative of EGP 255 per share.

OCI N.V. Starts Bid For 24% of OCI S.A.E on June 27

The EGX management announced that the tender offer made by OCI N.V. for 208,938,419 shares, or 100% of issued shares of Orascom Construction Industries (OCI) has started on Thursday, till Sunday, July 28, 2013.

The number of requested shares amounts to 50.196 million, or 24.024% of the target company’s shares. The offer price is EGP 255 per share, or through swapping shares at 1 in the target company for 1 in the bidding company.

The tender offer will be executed on EGX during five days after the expiry of the tender offer. 
However, the stock market indicate that, in case of force majeure that prevents the continuation of the tender offer, the duration of the offer will resume after such events.

Companies’ Weekly Performance Highlights:

Orascom Construction Industries – (OCIC) closed last week at EGP 224.89, while closed on Thursday at EGP 241.34 (highest close), jumping by EGP 16.45 (7 %).

Stock lowest close during the week came on Sunday at EGP 216.14.

On Tuesday, OCI N.V. announced that it has received approval from the Egyptian Financial Supervisory Authority (EFSA) to launch its proposed tender OCI’s outstanding ordinary shares listed on the Egyptian Stock Exchange (EGX).

OCI N.V. will offer all shareholders of OCI S.A.E. an Exchange Offer to convert in to OCI N.V. as well as a cash alternative of EGP 255 per share.

On Wednesday, Cairo-based Beltone Financial Holding said in a report that “We recommend taking the cash offer as we believe OCI’s liquidity will likely be negatively impacted subsequent to the completion of the transaction”, Bloomberg reported.

Also on Wednesday, EFSA addressed OCI BOD to assign an independent financial adviser in order to evaluate the mandatory tender offer of OCI N.V. before end of tender offer period at least by 5 business days.

Egyptian Financial Group-Hermes Holding Company – (HRHO.CA) closed last week at EGP 7.16, while closed on Thursday at EGP 7.36 (highest close), upping by EGP 0.2 (3 %).

Stock lowest close during the week came on Sunday at EGP 7.08.

Regarding 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 36,446,428.

Local investors chose also to buy by value of EGP 13,533,010.

Foreign investors were most active sellers this week by the value of EGP 49,979,440.

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