EGX Inches 0.11% Lower This Week Amid Unsteady Performance
Published Friday, 04 May 2012 11:09 | Written by Amwal Al Ghad
Egypt’s stock exchange benchmark EGX30 index edged 0.11 % lower this week, representing a retreat of 5.68 points, ending Thursday transactions at 4,929.24 points compared to 4,934.92 points at the end of last week.
Regarding current week trading, the index hit its highest point on Monday closing at 4,945.21 points, where its lowest point recorded on Wednesday at 4,906.90 points.
It is worth notable that, market closed on Tuesday due to Labors' Day vacation.
Egypt’s stock exchange benchmark started week in red amid clashes near the Ministry of Defense to retreat by 0.28 % on Sunday to close at 4,920.96 points. Market trade volume reached 86,484,890 shares amounted to EGP 1,434,152,078.
The index edged 0.49 % higher on Monday pushed by Orascom Telecom and Orascom Construction news to close at 4,945.21 points. Market trade volume reached 82,815,108 shares amounted to EGP 378,909,700.
Egypt’s stock exchange main index edged 0.77 % lower on Wednesday weighed by clashed near Egypt's Ministry of Defense which left 11 people killed and more than 160 wounded, to close at 4,906.90 points. Market trade volume reached 97,579,049 shares amounted to EGP 864,084,683.
Egyptian stock exchange main index EGX30 reversed early loss and rose by 0.46 % on Thursday to close at 4,929.24 points. Market trade volume reached 93,058,370 shares amounted to EGP 350,417,866.
Companies’ Weekly Performance Highlights:
Egyptian Company for Mobile Services (Mobinil) (EMOB.CAA) stock closed last week at EGP 192.77, while closed on Thursday at EGP 194.95, upping 1 % (EGP 2.18).
The highest close during that week came on Wednesday closing at EGP 195.21, while the lowest close came on Sunday at EGP 194.79.
On Wednesday, Mobinil slumped to a first-quarter net loss of 74 million Egyptian pounds due to the costs of switching its network to 3G and said its outlook was uncertain because of political volatility, Reuters reported.
"The high depreciation and amortization resulting from the partial swap of the network from 2G to 3G in a continuous effort to modernize the network continues to weigh on the net result," the firm said in a statement on Monday.
Mobinil said revenue in the first quarter of 2012 rose 3.9 percent year-on-year to 2.5 billion pounds on growth in data and broadband services such as smart phones and internet.
Mobinil said total subscriber numbers of 32.6 million at the end of quarter were up 7.5 percent year-on-year.
But the firm said the outlook for 2012 was uncertain due to Egypt's political instability.
Mobinil cited the "difficult and volatile political climate" weighing on the economy and "unstable regulatory environment" but added that it expected to witness growth and improving margins provided the country's politics stabilized.
Also on Wednesday, Mobinil announced that company’s BOD assigned HC Securities instead of Cairo Financial Investments Company as its independent financial adviser to evaluate the mandatory tender offer submitted by France Telecom’s MT Telecom to buy 100 % of Mobinil.
The company added, in a release sent to EGX that, such decision was taken after Egyptian Financial Supervisory Authority (EFSA) reservation as conflict of interest between Cairo Financial Investments and Mobinil.
On Thursday, Barclays cut Mobinil to equal weight from overweight.
Orascom Telecom - (ORTE.CA) stock closed last week at EGP 3.44, while closed on Thursday at EGP 3.31; dipping 4 % (EGP 0.13).
The highest close during the week came on Monday closing at EGP 3.38, while the lowest close came on Wednesday at EGP 3.29.
Telekom Austria investor Ronny Pecik and his ally Naguib Sawiris are to seek seats on an expanded supervisory board, the company said on Friday, announcing an extra item for its annual meeting on May 23.
It said in January that Pecik and Sawiris had built a stake of just over 20 percent in the company via shares and call options.
Austrian state holding company OeIAG is Telekom's biggest investor with a 28.4 percent stake.
An Algerian court on Sunday postponed an appeal hearing into a $1.25 billion fine imposed on Djezzy, the local mobile phone unit of Russian telecoms firm Vimpelcom, until May 6, a judicial source told Reuters.
Djezzy chief executive Tamer El Mahdy, who has been convicted in the case and faces jail if the conviction is upheld, failed to appear for the hearing at the Ruisseau court in Algiers, the source said.
A lower court ruled last month that Djezzy and its CEO were guilty of violating foreign exchange regulations. Djezzy's parent company denied the allegations against it and its chief executive, and lodged an appeal.
Djezzy has been the subject of a long-running dispute with the Algerian government, during which the firm has been hit by back-tax demands, threatened with nationalization, and put under criminal investigation.
Vimpelcom acquired Djezzy last year when it bought the assets of previous owner, Egyptian firm Orascom Telecom.
Under pressure from the Algerian government, Vimpelcom agreed to talks on selling a controlling stake in Djezzy to the Algerian state.
However, the decision to impose the $1.25 billion fine soured those talks and prompted Vimpelcom to announce it was going to international arbitration against Algeria.
Orascom Telecom, now a Vimpelcom subsidiary, said earlier this month that El Mahdy, an Egyptian national, was on medical leave. Asked to comment on his no-show in court on Sunday, an Orascom representative said the firm had no immediate comment.
On Monday, OT stated that it will announce its financial results for the fiscal period ending in 31st March, 2012 after the closing sessions of LSE and EGX on Monday 14th May, 2012.
Orascom Construction Industries (OCI) – (OCIC.CA) stock closed last week at EGP 259.67, while closed on Thursday at EGP 273.67; (highest close), representing an increase of 5 % (EGP 14).
The lowest close during the week came on Sunday at EGP 260.95.
Orascom Construction Industries (OCI) shareholders will vote on May 17 on a proposal to split the firm's construction and fertilizers businesses into two companies, a move designed to make both more competitive, OCI said on Monday.
The long-planned demerger of Egypt's biggest listed company would widen the investor base of the two new entities, make their management more flexible and make their credit profile more attractive to lenders, it said in an emailed statement.
Its request to hold the shareholders' meeting had been approved by Egypt's regulator, while final approval for the capital decrease of the existing company and the issuance of shares in the newly formed second company was still pending.
"This demerger should enhance investor understanding and transparency of the businesses and allows each business to pursue its independent development strategy," the OCI statement said.
OCI's fertilisers business has burgeoned over the last year on increased world demand, while its construction business shrank as the region's political and economic turmoil dampened new investment in infrastructure and other projects.
The revenue of the fertilisers business surged 63 percent in 2011 to $2.38 billion, and its net income nearly doubled to $694.4 million. The fertilisers business accounted for 72 percent of OCI's 2011 net income, OCI said.
OCI said that once final approval was obtained for the demerger, trading of OCI shares on the Egyptian stock exchange would be suspended until the split was completed. It did not say how long it thought the process would take.
Under the proposal, OCI would continue to own the fertilisers business but be renamed OCI Fertilisers, while a new company called Orascom Engineering & Construction would be formed to own the construction businesses.
The assets and liabilities would be distributed between the two companies based on their book value as of Dec. 31, 2011. Investors holding one share in OCI would receive an additional share in the new construction company for free, OCI said.
Al Arafa Investment and Consulting - (AIVC.CA) closed last week at $ 0.33 (lowest close), while closed on Thursday at $ 0.33.
Stock highest level recorded on Monday closing at $ 0.34.
On Monday, Al Arafa Investment and Consulting reported consolidated financial results posting a net profit of $ 7,912,954 for the period from 01/02/2011 till 31/01/2012. Noting that, it posted net profit of $ 17,075,569 for the same period a year earlier.
Also on Monday, Al Arafa announced that company’s BOD approved to finance its capital increase via free stocks distribution (one free stock for every existing two held).
Egyptian Chemical Industries (Kima) - (EGCH.CA) closed last week at EGP 9.11, while closed on Thursday at EGP 9.16 (lowest level), upping 1 % (EGP 0.05).
Stock highest level recorded on Monday closing at EGP 9.56.
On Monday, Egyptian Chemical Industries (Kima) BOD approved financial results for the fiscal period ending in 31/03/2012 with net profits after taxes of EGP 88.7 million, compared to EGP 73.9 million.
The most active sectors all through the week were Telecommunications, Financial Services, Real Estate, Construction & Material and Basic Resources.
Telecommunications sector achieved total traded value of EGP 322,442,766.
Financial Services came second in terms of performance, as it achieved total traded value of EGP 282,296,928.
Real Estate sector ranked third in terms of performance, as it achieved total traded value of EGP 226,142,082.
Regarding Construction & Material, it achieved total traded value of EGP 151,834,815.
Finally, Basic Resources, as it achieved total traded value of EGP 54,137,537.
Regarding the 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 all through the week as their stock this week earning the value of EGP 60,117,336.
- Arab investors chose also to buy by value of EGP 53,098,776.
- Foreign investors were most active sellers this week by the value of EGP 113,216,112.
Retail and Institutions’ activity:
Retail activity led the market all through the week as it ranged between 26.72 – 62.79 %.
While Institutions activity ranged during this week between 37.20 – 73.27%.
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