EGX 30 Climbs 4%, Army Reshuffle Week
Published Thursday, 16 August 2012 16:14 | Written by Amwal Al Ghad
Egyptian Exchange’s benchmark EGX 30 index jumped by 4.08 % this week, representing a retreat of 202.55 pts, ending Thursday transactions at 5163.53 pts compared to 4960.98 pts at the end of last week.
Regarding current week trading, the index hit its highest point on Thursday closing at 5163.53 pts, where its lowest point recorded on Sunday at 4971.24 pts.
EGX30 started week in positive sentiment but shrunk early gains to edge higher by 0.21 % to close at 4971.24 pts on Sunday. Market trade volume reached 98,348,796 shares amounted to EGP 237,873,518.
Egypt’s EGX30 extended positive sentiment after President’s military heads reshuffle and advanced by 1.51 % to close at 5046.31 pts on Monday. Market trade volume reached 133.525 million shares amounted to EGP 450.98. million.
The index extended green area to head for the highest point in almost five months and advanced by 1.27 % to close at 5110.53 pts on Tuesday. Market trade volume reached 108,360,049 shares amounted to EGP 363,165,539.
EGX30 reversed early loss to extended rally and edged higher by 0.19 % to close at 5120.25 pts on Wednesday. Market trade volume reached 274,977,103 shares amounted to EGP 1,710,017,739.
EGX30 ended the last session in Ramadan in green area to extended rally and rose by 0.85% to close at 5163.53 pts on Thursday; the highest in more than five months. Market trade volume reached 185,234,845 shares amounted to EGP 483,414,424.
Companies’ Weekly Performance Highlights:
Talaat Moustafa Group - TMG Holding - (TMGH.CA) closed last week at EGP 3.89, while closed on Thursday at EGP 4.4 (highest close), jumping by 13 % (EGP 0.51).
Stock lowest close during the week came on Sunday at EGP 3.76.
On Sunday, Gehad El Sawafta, Vice Executive Officer of TMG, revealed that the company has succeeded in selling around 50 % of its commercial mall in Madinaty during May and June with total value of about EGP 500 million.
He added that, the company succeeded in increasing its sales in the first half
of 2012 to reach EGP 2.4 billion, compared to EGP 1.1 billion in the first half of 2011.
Finally, he pointed out that the company will focus in the coming period to deliver the remaining units.
Orascom Telecom Holding - (ORTE.CA) stock closed last week at EGP 2.92, while closed on Thursday at EGP 3.65 (highest close), jumping by 25 % (EGP 0.73).
The lowest close during that week came on Sunday closing at EGP 2.92.
On Tuesday, Orascom Telecom reported second-quarter net profit of $27 million, reversing a loss of $58 million a year earlier when results were weighed down by tax charges from the sale of its Tunisian business, Reuters reported.
Earnings before interest, tax, depreciation and amortization (EBITDA) were $469.8 million, the company said, also revising down its year-earlier figure to $439 million from $476 million.
It said comparative year-earlier figures were restated to reflect the demerger of its units Mobinil, koryolink and Alfa as part of the Vimpelcom tie-up.
Orascom said its EBITDA margin, a broad measure of profitability, was 50.5 percent, up 3.1 percentage points from a year earlier on a like-for-like basis.
In Bangladesh it fell by 4.7 percentage points due to higher marketing costs as it took on more customers, Orascom said.
It attributed the group's higher profitability to cost cutting, subscriber growth and more use of data services but said adverse currency effects weighed on the bottom line as reported in U.S. dollars.
In Algeria, its most lucrative market which has been hit by a long-running dispute with the government, average revenue per user declined as the subscriber base expanded, but new subscribers used their phones less than others.
It is worth noting that, EFG-Hermes stated that Orascom Telecom reported earnings of USD27 million, down from last quarter’s USD116 million and our USD57 million forecast, primarily on FX.
It added that, net income was partially offset by an unrealized FX loss of USD99 million at the holding company level due to the revaluation of the shareholder loan from Vimpelcom and the financial receivables from Globalive Canada.
Last quarter’s bottom line was boosted by a USD43 million FX gain on appreciation of CAD versus the EGP.
Moreover, Hermes stated that it maintained Buy rating and FV of $3.95/EGP4.73 per share.
Six of October Development & Investment (SODIC) – (OCDI.CA) closed last week at EGP 15.38, while closed on Thursday at EGP 19.11 (highest close), representing an increase of EGP 3.73 (24 %).
Stock lowest close during the week came on Tuesday at EGP 14.82.
On Wednesday, SODIC reported, in a press release, a net consolidated profit of EGP 85 million on consolidated revenues of EGP 648 million for H1 2012.
To-date, the Company is having one of its strongest operational years with a record new contracted H1 2012 Gross Sales of EGP 1.07 bln, solid H1 unit delivery figures of 182 units worth EGP 593 million and a smooth cash collection cycle bringing in EGP 398 million of receivables for the first half of 2012.
Also on Wednesday, SODIC BOD approved that the company will obtain EGP 50 m loan in order to finance Forty West project.
Furthermore, on Thursday Ashraf Farid, Public Relations Manager of SODIC, revealed that the company received bids from 10 local and international banks in order to obtain EGP 50 million loan to complete Forty West project.
He pointed out that, the loan, which he expects to be signed during the third quarter of 2012, will be pumped in the final finished of the project, adding that the company sold around 70-80 % of its units.
Separately, he revealed that SODIC is studying family housing projects in the coming period.
EFG-Hermes – (HRHO.CA) closed last week at EGP 10.54, while closed on Thursday at EGP 11.36 (highest close), representing an increase of EGP 0.82 (8 %).
Stock lowest close during the week came on Tuesday at EGP 9.99.
On Wednesday, Hermes, the leading investment bank in the Arab world, released its consolidated financial results for the second quarter of 2012, reporting net income of EGP 27 million on total consolidated operating revenues of EGP 477 million.
Group revenues rose 2 percent year-on-year (and 10 percent quarter-on-quarter) to EGP 477 million, backed by a 16 percent Y-o-Y increase in Credit Libanais’ revenues and a 3 percent Y-o-Y increase in the Investment Bank’s fee and commissions, but partially offset by a contraction in capital market and treasury income that saw total Investment Bank revenues decline 13 percent from 2Q2011.
Revenues for the quarter split as 59 percent contributed by the Commercial Bank and 41 percent by the Investment Bank.
The Investment Bank reported a 13 percent Y-o-Y contraction in revenues to EGP 195 million.
While Investment Bank fee and commission income climbed 3 percent year-on-year and 49 percent quarter-on-quarter to EGP187 million, growth was offset by an 81 percent contraction in capital markets and treasury revenues on the back of a very strong 2Q2011 figure that included dividend income from EFG Hermes’ investment in real estate developer SODIC.
“Continued turbulence in the Middle East and around the world did no favours for market sentiment in the past quarter,” noted EFG Hermes Chief Executive Officer Hassan Heikal. “In a very challenging period, I am delighted to report we have maintained profitability while growing our revenues on both a quarter-on-quarter and year-on-year basis.
The most active sectors all through the week were Banks, Telecommunications, Financial Services, Real Estate and Construction & Material.
Banks sector achieved total traded value of EGP 450,118,782.
Telecommunications Banks came second in terms of performance, as it achieved total traded value of EGP 420,288,637.
Financial Services sector ranked third in terms of performance, as it achieved total traded value of EGP 388,395,693.
Regarding, Real Estate it achieved total traded value of EGP 250,416,866.
Finally, Construction & Material, as it achieved total traded value of EGP 164,545,740.
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 9,918,442.
Foreign investors were most active sellers this week by the value of EGP 9,077,884.
Local investors chose also to buy by value of EGP 840,559.
Retail & Institutions’ Activity:
Retail activity led the market all through the week as it ranged between 43.73 – 89.09 %.
While Institutions activity ranged during this week between 12.90 – 56.26 %.