A holiday-shortened trading week witnessed blue chips pushing the market upward. Sherine Abdel-Razek reports The trading week which ended on 28 April included only three trading days. This week provided little inspirational news, except for the strong performance of blue chips, especially those poised to release their first quarter results. Their exceptional performance served to elevate the whole market. This added to the euphoric beginning on Tuesday amid news that telecom giant Orascom Telecom Holding (OT) settled its disputes with the Palestinian Investment Fund and was thus able to increase its stakes in its Algerian and Tunisian subsidiaries, indicating higher potential for profit spikes over the coming years. OT shares ended the week at historic highs, recording LE469 a share up from LE430 the previous week. Analysts believe that another cause of Tuesday's excitement arose from the airing of the first two instalments of President Mubarak's televised interview leading investors to enter as buyers in anticipation of his announcement that he will run for the election or will even choose a deputy. Egypt's stock market index CASE30 rose by six per cent, its highest gain so far in 2005. The euphoria was short-lived however, as Mubarak refused to announce his final stance on the issue of his nomination for a fifth term. Market participants and various economic circles were hoping for a confirmation on Mubarak's candidacy during Tuesday's TV interview as a guarantee that the economic reforms adopted by Nazif's government would continue. Blue chips financial results, nevertheless, were positively mirrored in their performance. Commercial International Bank's (CIB) shares rose as the bank announced its first quarter results on Wednesday, showing a 29 per cent growth in quarterly profits which hit LE142.9 million. CIB-Egypt's stock started an upswing early in the week as investors were already upbeat about the bank's performance. The stock closed Thursday's trading at LE46 up from LE44 per share a week earlier. The market appeared ready and willing to receive some good first quarter results. The companies soon to be announcing their results include MobiNil, OCI and ASEC cement, all of which ended the trading week on solid ground. MobiNil's shares closed at LE187 a share, up from LE176.5 the previous week with investors eyeing strengths in the company's finances. OCI, one of the week's busiest stocks, increased by LE4.68 Egyptian pounds, and closed at LE132. Brokers said ASEC was also soon to issue strong figures, helping the stock climb 1.26 pounds, or 5.8 per cent, to last trade at 22.90 pounds. The gains of blue chips were recorded in the Hermes financial index as an increase to 36,300 up from 34,150 a week ago. Arab Cotton Ginning Company (ACGC) in particular attracted much attention. The stock witnessed a large rise during the first three months of 2005 to settle around LE11.5. According to a technical analysis report released by Commercial International Brokerage Company (CIBC), the stock's trends in the past hint toward an upward climb in the future. CIBC put the target price at LE14.5-15. The company is planning to increase its capital through a private placement for its existing shareholders so as to raise its capital from LE231.5 million to LE363 million. The capital increase would be represented in 46.3 million shares at a nominal value of LE5 per share and will be used to finance the company's expansions. The ACGC core business includes cotton ginning and spinning. The company is 40 per cent owned by the state-owned Holding Company for Textiles with the remaining 60 per cent in free floating shares in the Egyptian stock market. Some news on privatisation might help the market in the near future. The Ministry of Communication and Information Technology, the Ministry of Investment and the management of Telecom Egypt invited proposals from interested investment banks to act as financial advisors to develop potential privatisation options for Telecom Egypt. The deadline for submitting the final proposals is 29 May. Moreover, Minister of Investment Mahmoud Mohieddin said that the government plans to sell off the entirety of state-owned shares in joint companies through its privatisation scheme. "The government owns over 25 per cent in about 295 companies, in addition to stakes lower than 25 per cent in 256 companies," Mohieddin commented during a meeting with the economic committee of the People's Assembly.
