The market headed south in a profit-taking spree that saw it breaking the 6,000-point threshold to end at its lowest point in a month on Tuesday reaching 5,620 points. Analysts said that the profit-taking was expected after the previous weeks' gains, and expect the index to retreat more to settle around 4,800 points. Individual local investors are grasping the largest chunk in the transactions while foreigners were net buyers in most of this and last week's sessions. AL-ARAFA FOR INVESTMENT AND CONSULTANCIES: The textile and apparel company released its results for its fiscal year first quarter ending 30 April showing earnings of $2.8 million. There are no comparable figures of last year's results as the company had changed its fiscal year to end in January instead of March, and did not provide comparable figures. If we compare the quarter to the fourth quarter of 2007/2008, we see the company's net profits declined by 65 per cent. The decline in profits was attributed by CI Capital to an 18 per cent decline in net sales mainly due to seasonal factors and with the textiles segment sales incurring the greatest declines compared to that in the retail and apparel and tailoring. Beltone Financial said that profitability in the retail segment was also impacted as the segment reported an operating loss of $2.2 million in the quarter, mainly due to higher operating expenses and restructuring costs relating to Arafa's recent acquisitions. The LE1.4 million losses in value of currencies it uses due to the depreciation of pound sterling and euro currencies versus the US dollar, weighing down on the results as well. EGYPTIAN KUWAITI HOLDING (EKH) signed an agreement to sell its stake in the Egyptian Glass selling to Alavesa de Promociones Empresariales. According to the agreement, the holding company will sell around 1,072 million shares representing 61.27 per cent of the company's shares. While Alavesa already owns a stake of 38.3 per cent of the Egyptian Glass company, it has to obtain the Capital Market Authority's approval to purchase the minority stake in the Egyptian Glass which is less than 0.5 per cent at the same purchase price it will pay to EKH. TELECOM EGYPT (TE): The company is considering acquiring the Internet services provider (ISP), LINKdotNET, currently owned by Orascom Telecom (OT). The aim of the move, according to analysts, is to expand its Internet services contribution in revenues. TE already is involved in the data and Internet segment through its 95 per cent--owned ISP, TE Data. Commenting on the news CI capital said it will lead to "muted competition" now that it would be the owner of the largest market share. Meanwhile, according to CI, there would be a conflict of interest as TE has a 45 per cent stake in Vodafone Egypt (VFE). Meanwhile, VFE submitted an offer to acquire LINKdotNET. On another front TE is to acquire the largest payphone operator network in Egypt, Menatel, through debt settlement between the two companies. The move will help TE seize a 67 per cent market share through two payphone companies (including Marhaba). ORASCOM CONSTRUCTION INDUSTRIES (OCI): The company signed $168 million contracts for infrastructure works in Egypt. The works include development of a part of the Cairo-Alexandria highway in addition to the construction of the South Waste Water Treatment Plant in 6 October governorate. This came only few weeks after the company was awarded a contract for waste water management in new Cairo. ORASCOM TELECOM (OT): Italian telecoms operator Wind, owned by OT Chairman Naguib Sawiris is considering a bond issue of up to 2.5 billion euros aimed at refinancing part of its debt. The company would also use the proceeds from the offering to increase its dividend. Wind's net debt stood at six billion euros at the end of March. On another note, a UK court ordered Sawiris to pay 75 million euros to an Italian businessman who was one of the main engineers of Sawiris acquisition of Wind in 2005. ARAB INTERNATIONAL BANK (AIB): The bank which is jointly owned by the governments of Egypt, Libya, United Arab Emirates, Qatar and Oman started to liquidate its holdings abroad and reinvesting in Egypt. Press reports estimated the value of those investments by $4 billion that are mainly invested in governments securities. This comes in addition to the $500 million that the bank is being already reinvesting in the local tourism, petrochemicals and energy industries. A senior official in the bank attributed the step to studies indicating that domestic investments have become more profitable and more guaranteed for the bank. SIXTH OF OCTOBER DEVELOPMENT AND INVESTMENT COMPANY (SODIC): The company has completed the sale of all the units for the third phase of its Allegria project, including 75 units with a total value of LE150 million. The phase was offered in mid-May and the first day of the offering witnessed the sale of 50 units. Compiled by Sherine Abdel-Razek
