Regional markets witnessed yet another crisis in the past two weeks, but the local market showed more resilience this time. The Saudi, Kuwaiti and UAE markets suffered losses which induced the Saudi state funds to interfere in support of the market which registered its highest-ever daily loss of eight per cent on 9 April. The Egyptian market saw a limited slowdown amidst profit-taking transactions which pushed the CASE30 index three per cent lower to close at 7,115 points during the week ending 11 April. Overall transactions were LE4.09 billion in the week which was shortened by a public holiday celebrating the Prophet Mohamed's birthday. ALEXANDRIA MINERAL OILS COMPANY (AMOC): The National Bank of Egypt on behalf of AMOC's stakeholders informed the Capital Market Authority (CMA) of its investors' plan to sell 50 per cent of the company to a strategic investor. The stake offered includes 430.05 million shares valued at LE3.5 billion, according to the company's closing price which was announced on Thursday. Selling will take place through a tender offer. Prior to the NBE's move, the Egyptian Kuwaiti Holding Company had expressed an interest in buying a 60 per cent stake of AMOC. Other Gulf investors have also followed suit recently. The company floated a 20 per cent of its equity in the second half of 2005 by means of an IPO as well as private placement. Both were oversubscribed. Major shareholders include NBE, Banque Misr and the Egyptian Petroleum Company. The news boosted demand for the company's shares which closed by LE2.14 higher, at LE82.03. AL-WATANY BANK OF EGYPT (AWB): The bank decided to increase its paid in capital from LE750 million to LE1 billion. Current shareholders have the right to subscribe in the capital increase at the bank's par value of LE10. AWB had also decided to offer the LE1 billion worth of bonds issue approved before, but the previously high interest rates have made this costly to pursue. Local interest rates were lowered two weeks ago. ORASCOM HOTELS AND DEVELOPMENT (OHD): The company offered to buy a 17.55 per cent stake of the state- owned construction company Heliopolis Housing through both share swap and cash transactions. CEO of OHD Sameeh Sawiris was recently quoted as saying that "every single share" of Heliopolis Housing will be swapped for two OHD shares in addition to LE64.5 per share. This will bring OHH's share price up to LE150. Sawiris said that the move to buy a minority share in OHH has been done with an eye to giving him the right to join the company's board of directors .This would give him a "better negotiating position" to buy the rest of company later. OHH which is 72 per cent owned by the Holding Company for Construction was partially privatised in the mid-1990s. An approximate 10 per cent was floated then, with the Employee Shareholders Association buying another nine per cent of the company. OHH owns the famous Merryland Park in Heliopolis. It ended the week at LE6 higher than the previous week at LE162. Meanwhile, OHD lost 3.4 per cent to close at LE41.6. EFG-HERMES: The company's share maintained its position as the market's most active stock in terms of the value of transactions with LE1.4 billion worth changing hands during the week. EFG is currently preparing the documentation needed to acquire a licence from the Saudi Capital Market Authority in order to assume its activities as an authorised investment bank in Saudi Arabia. It is also working on obtaining a similar licence from the Jordanian authorities. The company's shares ended the week at the lower rate of LE72, compared to the LE73.5 of the previous week. The shares were supported last month by the company's decision to buy back 15 million of its stock in the month ending 14 April. Since EFG has not bought the whole sum so far it is expected that it will extend the period until the end of April. ORASCOM CONSTRUCTION INDUSTRIES (OCI) invited its shareholders as of 16 February, 2006 to subscribe in the uncovered portion of its LE2.3 billion rights issue divided over 11.5 million shares. Around 95 per cent of the shares offered were subscribed at a price of LE201 per share in the first round. The remaining 0.6 million shares were offered over a period of seven days ending 18 April, 2006. Any unsubscribed shares after this period will be cancelled. ORASCOM TELECOM HOLDINGS (OTH): The shareholder of OT had cause to celebrate last week when the company's chairman Naguib Sawiris unveiled yet more expansion plans in an interview published by The Financial Times of London. Sawiris said that he was planning for more European expansions by means of major acquisition deals in the coming three years. He added that Weather investments which was set up by the Sawiris family last year to buy Italy's second fixed line operator Wind will be listed on the Milan Stock exchange by the end of this year. Weather owns 50 per cent of OTH. Compiled by: Sherine Abdel-Razek
