Arab Finance: Egypt’s stock exchange benchmark EGX 30 index rose by 0.95 % this week, representing an increase of 64.48 points, ending Thursday transactions at 6783.83 points compared to 6719.35 points at the end of last week.
Regarding current week trading, the index hit its highest point on Thursday closing at 6783.83 points, where its lowest point was on Sunday, at 6,632.54 points.
Egypt’s stock exchange benchmark “EGX 30 index” started week on sharp decline and retreated by 1.29 % on Sunday to close at 6,632.54 points. Market trade volume reached 109,738,304 shares amounted to L.E 1,033,025,206.
EGX30 eroded some of Sunday’s decline and rose by 0.27 % on Monday to close at 6,650.55 points. Market trade volume reached 103,934,478 shares amounted to L.E 1,459,980,359.
EGX 30 index extended gains for the second day and rose by 0.38 % on Tuesday to close at 6,675.67 points. Market trade volume reached 93,472,412 shares amounted to L.E 770,906,615.
EGX 30 index extended gains for the third day and rose by 1.61 % on Wednesday to close at 6,783.38 points. Market trade volume reached 123,652,860 shares amounted to L.E 964,019,681.
On Thursday, EGX30 ended session of fluctuations and closed almost flat by 0.01 % increase on Thursday to close at 6,783.83 points. Market trade volume reached 138,349,785 shares amounted to L.E 1,345,590,813.
Companies’ weekly performance highlights:
Orascom Telecom (ORTE) stock closed on Sunday at LE 6.04 while closed on Thursday at LE 6.3, gaining 4 % and about L.E 0.26.
The highest price for the stock during the week came on Wednesday when it closed at LE 6.36, while the lowest price for the stock during the week came on Sunday at L.E 6.04.
On Monday, Naguib Sawiris, OT chairman asserted that the Egyptian delegation visit to Serbia headed by Rachid Mohamed Rachid, Minister of Trade and Industry, was aiming at boosting Economic cooperation between the two countries.
Sawiris added that he explored Telecommunication market in Serbia during the visit and expressed his intentions to join such a market in case of privatization due to good growth opportunities.
Asked about talks with France Telecom over Mobinil, Sawiris said “unfortunately, talks with FT on hold”.
On Tuesday, Algerian Finance Minister Karim Djoudi said that Algerian government isn’t trying to get OT to leave the country and only wants it to pay taxes.
“All the government wants is that the company pays the taxes due,” Djoudi said. “We are not pressurizing Orascom to leave the country. They are willing to pay.”
He said his department "makes no distinction between operators".
The finance minister’s comments are “positive,” Sally Gerges, a telecommunications analyst at Beltone Financial. “It removes some uncertainty regarding the future of this operation and specifically regarding the reassessed taxes.”
On Thursday, OT announced that it declared on January 13, 2010 the terms of subscription for the rights issue to its existing shareholders starting January 31, 2010 until March 1, 2010.
Subscriptions by existing shareholders have resulted in shares subscribed for 4,342,083,487 and percentage of rights issue taken up: 99.67%.
Moreover, the release added that the FSA approved an oversubscription offering with respect to the remaining unsubscribed shares and full details of the offering will be published in major newspapers in Egypt on Saturday March 6, 2010.
Separately, OT sent a statement to Egyptian Stock Exchange, concerning the date of reporting its annual financial results ended on 31/12/2009.
OT said that it will report results on Monday 15/03/2010 after the end of trading session in Egyptian Exchange & London Stock Exchange.
Oriental Weavers (ORWE) stock closed on Sunday at LE 36.94 while closed on Thursday at LE 38.84, higher by 5 % and about L.E 1.9.
The highest price for the stock during the week came on Tuesday when it closed at LE 40.44, while the lowest price for the stock during the week came on Sunday at L.E 36.94.
On Monday, the firm sent a release to EGX, stating that company’s BOD approved in its meeting which was held on 28/02/2010 cash dividends of LE 3/share.
Moreover, company’s BOD approved the suggested proposal to split company’s stock nominal value to LE 1/share from LE 5/share, in addition to modifying chapters 6 and 7 of the company’s articles accordingly.
On Monday, the company reported its consolidated financial results posting a net profit of LE 351,175,301 for over FY 2009 against profit of LE 365,460,097 for the same period of the previous year.
Mr. Mohamed Farid Khamis, company’s Chairman, commented on the results saying that, "I am proud to report another record quarter and positive full year results for Oriental Weavers.
By achieving sales of L.E 973 million, Q4 09 is the second highest quarter in the history of the company. This is compared to EGP 839 million in Q4 08, or an increase of 16% Q-o-Q. The significance of this growth is that it sends a solid signal that recovery is on track in all of our markets globally.
Local sales have increased by 15% Q-o-Q and export sales have increased by 17% for the same period. This significant growth in exports was fuelled by an 18% increase in sales to the US and a 27% increase to Europe, the main export markets of Oriental Weavers.
Moreover, and despite the sluggish global economy, FY09 sales witnessed an increase of 3.17% when compared to FY08.
This overall sales increase was supported by the stability of the local economy and ongoing expansions in our distribution networks and channels which resulted in a 14% increase in local sales.
On Wednesday, CI Capital maintained company both stock target price and long term fair value at LE 42.9/share and LE 46.3/share respectively, with recommendations of Buy.
CI Capital stated that, improvement in 4Q09 local and export sales; and the unprecedented increase in confirmed orders received during January 2010 Hannover fair confirmed the market’s consensus view that the worst may nearly be over.
Despite the global slowdown, Oriental Weaver, the world's largest machine-made rug and carpet manufacturer, showed relative resilience in 2009. Going forward, we expect revenues to further improve, yet rising polypropylene prices will remain a main concern.
On Thursday, Haitham Abdel Moneim, company IRM stated that profits earned from local sales boosted company financial results as it showed 14 % raise against 3.5 drop in export sales.
Moreover, Abdel Moneim explained that the 50% decline in currency conversion contributed significantly in the 3.9 decrease in company profits.
“The company aimed at approaching expansion strategy by acquiring competitors’ shares,” he noted, elaborating that such strategy led to slight retreat in sales in spite of sharp decline on the international level (about 25%).
Abdel Moneim expected company profits to recover in the period ahead due expected recovery in the global economy.
EFG-Hermes (HRHO) stock closed on Sunday at LE 28.55 while closed on Thursday at LE 30.84 about L.E 2.29 increase.
The highest price for the stock during the week came on Thursday when it closed at LE 30.84, while the lowest price for the stock during the week came on Sunday at L.E 28.55.
On Wednesday, EFG-Hermes said that it is opening a Damascus office and will launch a $ 250-$ 300 million private equity fund in the "untapped" Syrian market.
"The recent reforms undertaken by the Syrian government to liberalize the economy and facilitate the business environment have made Syria a compelling investment opportunity," the firm's Chief Executive Officer Hassan Heikal said in a statement.
"Having a direct presence in Syria was the next logical step for the firm as we continue to implement our regional expansion strategy," he added.
The firm said it is awaiting final approval from Syrian regulators to launch the operation, a partnership with Syrian businessman Firas Tlass, who will own 30 percent. Tlass will be the chairman of the Syrian unit, while EFG appointed Hazem Badran as CEO.
On Thursday, Pakistan’s central bank has given approval to the company to evaluate RBS Pakistan Ltd.
The State Bank of Pakistan has granted “in-principle approval to conduct due diligence,” RBS Pakistan said in a statement to the stock exchange today. EFG-Hermes and Pakistan’s Faysal Bank Ltd. are competing to acquire a majority stake in RBS Pakistan.
Separately, the firm sent a statement to EGX stating that its 2009 net revenues hit L.E 1,47 bln comparable to L.E 2,257 bln in the previous year.
Hermes statement added that net profits (after deducting taxes and minority rights) amounted to L.E 551,8 m in 2009 in comparison to L.E 933,5 m a year earlier.
Moreover, financial results report of EFG-Hermes revealed company suggestion to distribute L.E 3 cash dividends distributed as L.E 1 per share over FY2009 after getting OGM approval on 2009 audited financial results.
In addition to, L.E 2 per share in private payout after passing 2010 Q1 financial results.
Palm Hills Development Company - (PHDC) stock closed on Sunday at LE 8.9 while closed on Thursday at LE 8.87.
The highest price for the stock during the week came on Sunday when it closed at LE 8.9, while the lowest price for the stock during the week came on Tuesday at L.E 8.84.
On Sunday, Palm Hills reported consolidated financial results posting a net profit of LE 520,095,811 for the period from 01/01/2009 till 31/12/2009.
Noting that, it posted net profit of LE 652,662,839 for the same period of the previous year.
The company announced today its consolidated financial results for the fiscal year 2009, reporting total sales of EGP 1,145.8 million (US$209 million), a decline of just 7% year-on-year despite a challenging first half that saw the Egyptian real estate market enter a downturn.
Net sales in Q4 2009, expected to be a slow quarter due to an abundance of national holidays, were up 55% to reach EGP 470.8 (US$ 86 million) compared to EGP 303 million (US$ 55 million) in Q3 2009 and were 237% higher than Q4 2008.
Cumulative Reservations reached EGP 9.4 billion (US$ 1.7 billion), including Cumulative Contracts of EGP 7.2 billion (US$ 1.3 billion) and Total Reservations of EGP 2.2 billion (US$ 400 million).
“We are very pleased with how this challenging year has ended,” said PHD Chief Executive Officer Yasseen Mansour, noting, “New contracts were up significantly in Q4 2009 both year-on-year and quarter-on-quarter, while cancellations in the fourth quarter were down substantially on quarterly and yearly comparatives.
On Tuesday, the firm said it is seeking a buffer against relatively volatile home sales, said on Tuesday it had received approval to buy a majority stake in a hotels holding company.
The Egyptian stock exchange cleared the developer to buy 52 percent of Egypt's Maccor for Securities Investments Company, which holds stakes in hotel owners, for 141 million Egyptian pounds ($25.7 million), Palm Hills said in a statement.
Many of Egypt's real estate firms do not recognise revenue from a sold unit until construction is all or partly complete, a process that can take more than four years after the contract is signed.
A number of Egyptian developers have moved into store and hotel ownership to secure steadier income.
"This step is part of the company's strategy in diversifying sources of revenue into sectors other than real estate that are characterised by a stable level of income," Palm Hills said.
A close source to the deal stated that, Palm Hills is welling to pump investments in Maccor, as it will add about 3,000 new hotel rooms in the coming period in order to enter the list of companies with largest room numbers in Egypt.
In a separate statement, Palm Hills said the value of its land bank had risen to 38.1 billion pounds as of end-October, up 15 percent from a valuation in November 2008.
The developer's land bank was 48.4 million square metres at the time of the revaluation, it added.
On Thursday, FSA sent a release to EGX, stating that it approved company to call for the existing shareholders to subscribe in the company’s issued capital increase from LE 1.397.760.000 to LE 2.096.640.000, amounting to LE 698.880.000, through the issuance of 349.440.000 shares at a nominal value of LE 2 per without issuance fees.
Maridive & oil services - (MOIL) stock closed on Sunday at $ 4.35 while closed on Thursday at $ 4.54 up by 4% and about $ 0.19.
The highest price for the stock during the week came on Thursday when it closed at LE 4.54, while the lowest price for the stock during the week came on Sunday at L.E 4.35.
On Monday, Emad Fawzy, company Financial Manager reported that Maridive is searching investment opportunities available in the West African regions and targeting increasing its business volume in North Africa.
Maridive submitted an offer to get a project in West Africa and awaiting approval of concerned parties and if any, company construction works share will hit $ 140 million.
Moreover, Fawzy assured that Maridive business expansions are ongoing in North Africa as it offered new marine unit for rent in Libya for two years.
Separately, Hatem Ala’a Financial analyst at HC expected that Maridive project is a part of tripartite joint venture with Enpi and Total in Cameroon as a part of Maridive expansion plans.
Separately, Maridive sent a release to EGX, regarding what was published in a newspaper considering its joint venture with Enpi and Total.
The release pointed out that, in case the project was officially settled, Maridive’s stake in such alliance will amount to $ 140 million.
Moreover, Maridive business expansions are ongoing as it awaits new marine units during 2010 which will be directed to work in Libya’s deep water, it added.
Talaat Moustafa Group (TMGH) stock closed on Sunday at LE 7.55 while closed on Thursday at LE 7.95 up by 5% and about L.E 0.4.
The highest price for the stock during the week came on Thursday when it closed at LE 7.95, while the lowest price for the stock during the week came on Tuesday at L.E 7.55.
On Monday, Credit Suisse set in a recent study TMG price target at LE 10.38/share.
Moreover, the brokerage began coverage of TMG, Egypt's biggest developer by market value, with an "outperform" rating.
On Thursday, Egypt's Appeal Court accepted on Thursday an appeal request by property magnate and politician Hesham Talaat Moustafa chairman of TMG, who was sentenced to death for murdering a Lebanese singer Suzan Tameem.
The court "accepts the request for retrial for both convicts," judge Adel Abdel-Hamid told the court.
He added that the case, which included a security man also sentenced to death over the murder, would go to a criminal court.
In a related context, Egyptian Supreme Court previously postponed to March 4 a ruling on an appeal request by property magnate and politician Hesham Talaat Moustafa, who was sentenced to death for murdering a Lebanese singer Suzan Tameem.
The announcement was made by Judge Adel Abdel-Hamid following a more than six-hour court hearing in a case that has gripped the Arab public.
Sectors performance:
The most active sectors all through the week were Financial Services excluding Banks, Real Estate, Construction and materials, Telecommunications and Food and Beverages.
Financial Services excluding Banks sector came first in terms of performance, as it achieved total traded value of LE 1,177,644,203.
Real Estate sector ranked second in terms of performance, as it achieved total traded value of LE 774,128,900.
Regarding Construction and materials, it achieved total traded value of LE 614,695,278.
Telecommunications sector, it achieved total traded value of LE 441,570,089.
Finally Food and Beverages sector, it achieved total traded value of LE 269,968,312.
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 they dominated the market by the value of LE 512,400,732.
- Foreign investors were best sellers through this week by the value of LE 478,066,295.
- Arab investors were also net sellers by the value of LE 34,334,437.
Retail and Institutions’ activity:
Retail activity led the market all through the week as it ranged between 29.88 % –62.42 %.
While Institutions activity ranged during this week between 37.57 % – 70.11 %.
Friday, March 5, 2010
Daily Technical Report on March 04 , 2010
04 Mar 2010 07:38 PM
The Egyptian exchange index EGX30 gone up today by the beginning of the session reached the level of 6842 then began to decline from this level to reach the level of 6783 which was the close for today’s session , and still accompanied by low volumes just under the billion level , generally as the index above the important support zone at 6500 we still target the zone of 7280 / 7300 on the short term , otherwise a stop loss should be activated if 6500 been violated to the downside
The Egyptian exchange index EGX30 gone up today by the beginning of the session reached the level of 6842 then began to decline from this level to reach the level of 6783 which was the close for today’s session , and still accompanied by low volumes just under the billion level , generally as the index above the important support zone at 6500 we still target the zone of 7280 / 7300 on the short term , otherwise a stop loss should be activated if 6500 been violated to the downside
Sunday, October 25, 2009
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