The market celebrated Bairam in the week ending 4 January,coupled with good news on the macro and micro levels. The two-day trading week witnessed the market going up, amid buoyant transactions which mounted to approximately LE1.6 billion. The CASE30 continued its gains, closing at 7160 points. The activity was triggered by news that state revenues increased by 64 per cent, to reach LE40.3 billion. An additional impetus was gained by a 27.3 per cent increase in tax revenues. Expenditures during the same period rose by 15 per cent to reach LE37.3 billion, as wages and salaries grew by 12.3 per cent to reach LE14 billion. ORASCOM TELECOM HOLDING (OTH): The company gave its shareholders many reasons to celebrate during the week, since one of OTH's three mobile network operators in Iraq was granted a three-month extension for its Iraqi GSM operation, Iraqna. While news that OTH and Qatar Telecom withdrew their joint bid for 67 per cent of Indian telecom operator Hutchison Essar appears to be a failure, a closer look proves otherwise. The withdrawal could suggest that the bid price for Essar was too high, estimated at $13.5 billion by some. This would be in favour of OTH which owns 19.3 per cent of Hutchison Telecommunications, the company currently selling the 67 per cent stake. OTH's overall subscriber base worldwide reached 50 million by the end of 2006, ranking it eighth among GSM providers around the world. Company Chairman Naguib Sawiris said his company plans to move up the list to become one of the world's five biggest telecom companies and increase its subscribers to 100 million by 2009. In a related note, the Pakistani subsidiary of OTH, Mobilink, witnessed a notable increase in its subscriber base during the five months ending in November, 2006, due to cheap rates. Mobilink's users reached 22.03 million, up from 10.35 million in the comparable period last year. Mobile phone users in Pakistan increased to 46.42 million, up from 19.61 million in the comparable period last year. OTH's upcoming extraordinary general meeting on 25 January will discuss a 1:5 stock split, reducing the share par value from LE5 to LE1. ETISALAT EGYPT: As the countdown to launching its services in February continues, the company started trial operations with both 2G and 3G technologies. A company senior official said that at the start of operations the network will cover around 70 per cent of inhabited areas in Egypt. The operator is expected to attract three million subscribers in its first year of operations. EGYPTIAN FERTILIZER COMPANY: The company will offer a 15 per cent stake, comprising 48 million shares, through a private placement at an estimated $150 million in the first quarter of 2007. The private placement will soon be followed by a rights issue at par value to raise paid-in capital from $320 million to $387.5 million, which will finance both local and regional expansion. EFC plans to increase production from 1.3 to 1.7 million tonnes per annum, as well as adding a new product that uses urea as the main raw material. Regional expansion involves establishing a joint venture with the Algerian company Sonatrach, where EFC will own 51 per cent of the company. EFG-HERMES: The financial house regained its position as the market's most active stock during the week. The company was the leading broker in 2006, with a market share of 19.57 per cent and a turnover of LE107.7 billion. CIBC, the brokerage arm of Commercial International Bank (CIB), ranked second with a market share of 8.91 per cent and LE49 billion in sales. DELTA FOR SUGAR: The company came under the spotlight with news that the family of the late UAE ruler Sheikh Zayed Al-Nahyan is seeking to form a partnership with the company to establish a new beet sugar plant in El-Sharqiya governorate. A company statement sent to the Cairo and Alexandria Stock Exchange (CASE) noted that the factory has two production lines, with an overall production capacity of 250,000 tonnes per year with investments at $131 million. Delta, which products include sugar, molasses and fertilizers, is 51 per cent-owned by the government and the rest is free floated. Minister of Investment Mahmoud Mohieddin announced plans to privatise the company in 2006, but the plan never materialised. The company is the country's second largest sugar manufacturer behind the Company for Sugar and Integrated Industries. Compiled by Sherine Abdel-Razek
