The market is witnessing a revival with its main index EGX30 hitting 7,200 points, its highest level since April. The overall daily turnover roams around LE1 billion amid the New Year's buying euphoria. On the macroeconomic level, the international reserves rose to $36 billion in December, the highest level ever in the Central Bank's history. The previous highest level was $35 billion recorded in September 2008 but it declined since then due to the global financial crisis to reach $31.1 billion in April 2009 since which it has been on the rise. Moreover, revenues from the Suez Canal rose 2.6 per cent month-on-month to $423.4 million in December. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): Egypt's largest mobile operator will distribute a LE9.19 dividend per share on its profits for the first nine months of 2010. The new dividend is nearly equivalent to its payment for all of 2009 and exceeded the expectations of analysts that put the expected payment for all of 2010 at an average of LE7.8. Analysts built their lower-than-last year expectations on the huge short-term financial obligations on Mobinil to finance 3G instalments. PALM HILLS DEVELOPMENT (PHD): The Administrative Court postponed the discussion of a law suit calling for revoking of land sales to PHD. Hamdi El-Fakharani, businessman in the construction sector, filed the case claiming that the company bought 960,000 square metres of land by direct order from the state which is considered a violation to the law of tenders and auctions. El-Fakharani filed PHD's case after the Administrative Court issued a verdict last September annulling Talaat Mustafa Group's Madinaty contract. CI Capital, the local investment house, considered the effect of the outcome of the lawsuit to be neutral even if the court were not to rule in PHD's favour. "The 960,000 square metres represent only two per cent of the company's total land bank, and therefore poses no significant risk to its profitability or operations or future plans," CI Capital said in a report. AL-ARAFA FOR INVESTMENT AND CONSULTANCIES: The high-end garments producer decided to reorganise its subsidiaries according to market segments as opposed to the previous approach of operational segmentation. According to the new "analyst and investor friendly" organisation, as an AIVC's release to the local stock exchange noted, the company will have three market segments: Arafa Luxury Wear Segment, which will incorporate Concrete, Euromed, Egypt Tailoring & Forall. The second is Formal Wear Segment, under the umbrella of which come Swiss Garments Company, Goldentex, Port Said, Egyptian Portuguese and the Baird. The third segment is Arafa Casual Wear Segment and will incorporate AIVC's newly established Beni Sweif operation Swiss Cotton Garments Company. RAYA HOLDING: The leading local IT company inaugurated its new call centre, Cairo Centre of Excellence, which uses the latest technology to provide sales and partner coverage to 18 countries in the Middle East and Africa. The new centre is one of five global hubs. The others are in Lisbon, Portugal, Prague in the Czech Republic, Raleigh, North Carolina in the United States, and Toronto, Canada. CITADEL CAPITAL: The regional private equity group hired Citigroup and EFG-Hermes Holding to manage the initial public offering of its energy unit Taqa Arabia. The decision to have the IPO around June was at first announced in September 2009 but was put on ice since then in anticipation of improvement in market conditions. Citadel Capital was listed in the local stock exchange in December 2009. It operates 19 funds with investments of more than $8.3 billion in 15 industries including energy, mining, agrifoods, cement, transportation and retail. ORASCOM TELECOM HOLDING (OTH): The company has completed the procedures of the sale of its stake in Orascom Tunisia Holding (Tunisiana). OTH sold its 50 per cent stake to Qatar Telecom (Qtel). As previously mentioned by OTH, the transaction is for a total cash consideration of $1.2 billion and it corresponds to an enterprise value equal to 6.7 times Tunisiana's 2009 earnings, and generates over 40 per cent annual return on OTH's investment in the business since 2003. Proceeds will be used to strengthen OTH's liquidity position and support the development of higher- growth businesses. On another front, the consortium led by OTH will sign a deal within days to obtain a licence to provide triple-play services in gated residential communities. Compiled by Sherine Abdel-Razeq
