WHO says awaits EMA, FDA reviews of J&J COVID-19 vaccine, monitoring global data    Liverpool's Klopp urges caution against high-flying but depleted Real    Assad dismisses Syria's central bank chief: State news agency    CIB's stocks hit lowest level in 28 months early Tuesday    Nile tensions spill over    African civil society representatives call for GERD 2nd filling postponement    Tennis: Medvedev tests COVID-19 positive, out of Monte Carlo Masters    Ukraine minister calls for military help, more Russia sanctions    Women more affected than men by depression: Egyptian Psychiatric Association    Live score: Chelsea v FC Porto (UEFA Champions League)    Party consensus    Forging a stronger partnership    Human rights vs coronavirus in Egypt    'MySafeUni Day' highlights fight against sexual harassment in universities    Sisi directs to speed up implementation of digitisation initiative in Egypt    34 projects worth $3.3bn aim to achieve gender equality in Egypt: Al-Mashat    Egypt's trade deficit widens by 6.6% during H1 of FY20/2021, CBE    Opportune time for archaeotourism    Parliament discusses new budget    Ora Developers signs an agreement with Telecom Egypt for communication services at its projects    Art Alert: Bahgaga to bring fun to Cairo's Zamalek Theatre with comedy music monologues    Egypt detects 818 new coronavirus infections; 42 deaths on Monday    Tatweer Misr signs EGP 3.2bn worth investment contracts for Bloomfields educational zone    Egypt highlights anti-climate change efforts during Spring Meetings    Water wars    Don't miss AUC's Lions of Cairo ensemble concert    Prominent American rapper and actor DMX dies at 50    Al-Sisi, Lavrov address bilateral cooperation, Ethiopia's disputed dam    Narrative Summit launches 1st episode of Reshaping Norms 2021    Russia offers technical assistance in Nile dam negotiation: Lavrov    2021 Copenhagen Documentary Festival to launch Big Digital Live Platform    Egyptian artists honoured at Cairo Opera House for taking part in Golden Parade    Russian FM says Egypt is main partner in Middle East, Africa    Egyptian-African Relations Committee discusses strengthening Egypt's stance in Africa    Egypt will not allow internal water crisis due to Ethiopian dam: Water Minister    Egypt's Public Prosecution announces results of investigations into Sohag train crash    Egypt sees an uptick in new coronavirus infections registers 801 new cases on Saturday    PMI moves towards a smoke-free transformation, takes part in a webinar on e-cigarettes    Zamalek's Shikabala nominated for best goal in CAF Champions League    Egypt's national youth fencing team achieves world glory    Karate Federation celebrates success of Egypt Cup    Egypt's President warns of grave consequences of water crises in Africa    Allianz Egypt partners with IGNITE to equip brand ambassadors for 2021 Olympics    Hassan Allam consortium wins contract to manage, operate Grand Egyptian Museum    Enhanced Labs signs Mr. Olympia 2020 "Big Ramy" And His Trainer Dennis James    King Tutankhamun funerary mask is must-see tourist icon: The Telegraph    Seasoned Egyptian screenwriter Wahid Hamed dies at 76    Egypt, Ethiopia, Sudan to resume Nile dam talks today    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Still the same old story
Published in Al-Ahram Weekly on 24 - 11 - 2005

The market anticipates Telecom Egypt's IPO in bearish mood, reports Sherine Abdel-Razek
We've seen it before -- investors rushing to liquidate their holdings in companies across the board as they scramble to amass cash to inject in a pending IPO. It happened with SIDPEC and Amoc, and now the same scenario is repeating itself. This time it is the long awaited IPO of Egypt's fixed line monopoly, Telecom Egypt (TE).
The selling spree that dominated transactions in the third trading week of November drove CASE 30, the index tracing the market's most active 30 stocks, down to finish the week at 5,725 points, a 4.2 per cent drop on the previous week. Total market turnover in the last seven days reached LE3.457 billion, with bonds contributing LE305.47 million.
Shares in EFG-Hermes Holding ranked first in terms of the value of transactions. The company did, however, lose some ground over the course of the week, ending at LE83 compared to the LE90 something it has been hovering around since the beginning of the month.
The drop came despite remarkable growth in its nine-month profit, which reached LE187 million as opposed to the net loss of LE0.26 million recorded for the same period of last year. Meanwhile the company denied rumours that it is seeking a listing on the Abu Dhabi and Dubai stock exchanges. The company, which has been expanding its regional activities after opening a branch in the United Arab Emirates, has applied for a brokerage in Saudi Arabia.
Arab Cotton and Ginning Company remained the market's most active performer in terms of the volume of traded shares. Arab Cotton Ginning is currently in negotiation with Nile Modern Cotton as it seeks to increase its stake in the company. Nile Modern Cotton recently acquired a controlling stake in Kabo, which in turn owns 54 per cent of the Alexandria Spinning and Weaving Company.
The banking sector had a hectic week. CIB came under pressure after the National Bank of Egypt announced that it was selling its 19 per cent stake in the bank to an investment fund rather than an international financial institution, a move that disappointed investors who had hoped the bank would be sold at a high premium. The bank ended the week at LE53.90. Al-Watany could not buck the downward trend and last week's healthy performance was reversed as it ended at LE23.60, down from LE26.40, its highest level since February 2000.
BLOM Bank of Lebanon has submitted an offer for 43.7 million shares, representing 87.5 per cent of Misr Romanian Bank at a price of LE11.82 per share. BLOM Bank already owns the remaining 12.5 per cent of Misr Romanian. BLOM is seeking outright ownership and reserved the right to withdraw its offer should less than 27.2 million shares be up for grabs.
It was a relatively active week for the cement sector with most of the key players posting better than expected nine- month figures. ASEC Cement, which is now 98 per cent owned by Italcementi, announced profits of LE283 million for the first nine months of the year, a huge improvement on last year's LE2.8 million. Misr Beni Sweif Cement, Qena Cement and Sinai Cement recorded 289, 124 and 113 per cent increases respectively in their net profits. Demand for cement has been on the rise for a year now as the rise in oil prices has boosted real estate development in the Gulf.
Egypt's largest rug-maker, Oriental Weavers, has announced details of its long-awaited corporate restructuring. The company held an extraordinary general meeting on 12 November to approve the restructuring and an associated increase in paid-in capital from LE200 million to LE300 million.
As part of the restructuring, the Khamis family, as well as some non-family minority shareholders, will swap direct holdings in OW subsidiaries and sister companies for shares in OW. According to an EFG report the Khamis family's stake in OW is expected to increase from 71.7 per cent to 77.4 per cent following the restructuring.
The Khamis family intends to pursue a secondary offering of existing shares to increase the group's free float in addition to listing shares as GDRs in international markets.


Clic here to read the story from its source.