Egypt's Court of Cassation upholds death penalty to 3 Muslim Brotherhood leaders    Sudan to complain to Security Council of Ethiopian unilateral measures on GERD    Terror charges laid against accused in Canada Muslim attack    Egypt's Planning Minister reviews parliamentary report on economic, social development draft plan    17th Egyptian-Saudi Joint Committee agrees to develop trade cooperation    Preview: France and Germany in rare early meeting at Euro 2020    Endeavour Mining announces admission to London bourse listing    APO Group, Getty Images make African press releases, images available globally    Luxor's comprehensive health insurance scheme gearing for 1 July launch    Pakistan military: Bomb kills 4 soldiers guarding coal mine    Egypt's parliament approves the country's new 2021/22 budget and socio-economic development plan    7th International Day of Yoga to be celebrated in Cairo    Swiss director Julia Bünter's Fiancées will open 22nd Ismailia Int'l Film Festival    Egypt's stocks finished in mixed notes as benchmark EGX 30 adds 0.47%    Egypt's Qalaa Holdings chairman banned from flying – Reuters    America is back? Experts warn multiple issues threaten to divide NATO    Group-IB uncovers ongoing large-scale scam targeting Middle East, Africa    Italian film 'Mi chiamo Francesco Totti' wins BankGiro Loterij Audience Award at IFFR    24th Shanghai Film Festival marks Communist Party of China centenary    Macron wants to 'move forward' with Turkey ties    With surge in virus, Oman faces shortage of hospital beds: AP report    Global financial institutions commit $80 bln to support Africa's sustainable recovery    Safwa Holding launches S-One in New Capital with EGP 750m in investments    Shoukry heads to Doha for talks on GERD issue    Cairo Court announces 3 decisions in Zamalek apartment case    Egypt development projects in South Sudan serve as role model in Africa: Irrigation minister    Novavax: Large study finds COVID-19 shot about 90% effective    A potential Ahly CAF Champions League final game causes dilemma for Olympic team    Some US allies near Russia are wary of Biden-Putin summit: AP report    The Nile for Peace Initiative calls for reaching a legally-binding agreement over GERD issue    Shoukry accuses Ethiopia of obstructing efforts to reach GERD agreement    Egypt, UNFPA to discuss further support to achieve 2030 agenda    Palestinian-Jordanian The Synaptik and Egyptian Felukah rappers team up in 'Nefsi' single    APO Group enters new exclusive agreement with Getty Images on African press releases and images    Iconic Iraqi poet Saadi Youssef dies at 87 in London    Chile's Sanchez out of Copa America group stage with injury    Defending champions Brazil hosts Copa America    Saudi Arabia limits 2021 Hajj pilgrimage to citizens, residents    France's Benzema eyes national team return    Egypt is on short list of partner countries for U.S. COVID-19 vaccines: embassy    Russia to resume charter flights to Egypt resorts in the coming days    Biden administration to send surplus U.S. COVID-19 vaccines to Egypt, several countries    Russia expects to resume charter flights to Egypt resorts in near future    Egypt's Sisi announces allocation of $500 million for reconstruction in war-wrecked Gaza    On International Museum Day, Egypt opens two new museums at Cairo Airport    Egypt's Ahly is establishing a new stadium, expected to be 'sports complex'    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    Veteran Egyptian journalist Makram Mohamed Ahmed passes away at 86    







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Downward pressure follows record gains
Published in Al-Ahram Weekly on 02 - 11 - 2005

Good micro-economic news failed to offset the downward pressure of investors taking their profits, reports Sherine Abdel-Razek
The gains posted by the Bourse during the last couple of months are not over, say observers, though investors are seeking to cash in and liquidate their holdings to realise capital gains. The Cairo and Alexandria Stock Exchange (CASE) is suddenly in the middle of a profit-taking frenzy.
Anticipation of third quarter results is adding to the problem, believe market experts, with investors holding on tightly to shares expected to report strong results. Third quarter results have to be posted by mid-November at the latest according to Capital Market Authority disclosure rules.
Though trading in the week ending 27 October was relatively thin, with an overall turnover of LE2.8 billion -- down to LE450 million a day compared to an average of LE700 million recorded during the rest of Ramadan -- both major players and small caps saw important developments.
With a turnover of LE318.08 million financial group EFG- Hermes emerged as CASE's second most actively traded stock during the week, closing at LE74.46, 5.19 points down. The retreat was a result of investors liquidating their holdings in the wake of record gains since the beginning of September, when shares were being traded at LE40.
The textile sector emerged as the week's top performer with listed companies benefiting from the news that US cotton subsidies are to be reduced. Arab Cotton Ginning, with a turnover of LE494.29 million, became the most actively traded stock, gaining 7.2 per cent to close at LE16.37.
The banking sector also performed well on the back of a number of developments. The French bank Caylon and the UK-based HSBC are expected to submit respective bids for the Egyptian American Bank sometime next week. The two banks were short- listed by the Bank of Alexandria, which owns a 32.5 per cent stake in EAB, from the 20 international and local banks that had expressed interest.
Commercial International Bank (CIB) is about to complete the due diligence process on the National Development Bank. CIB is itself expected to be the subject of a buying spree following the announcement that the National Bank of Egypt is considering the sale of its 18 per cent holding in CIB which, until NSGB's recent acquisition of Misr International Bank, was Egypt's largest private sector bank. Other major shareholders include the International Finance Corporation (IFC), with a five per cent stake. CIB ended the week at LE55.7, down from LE57 the previous week.
Following a 92 per cent increase in net profits -- which reached LE71.9 million -- during the first nine month of 2005 Al-Watany Bank shares gained 22 per cent to close at LE23.62, their highest price since April 2002.
Orascom Construction Industries (OCI) has also been making headlines. OCI is part of the consortium behind the Egyptian Basic Industries Corporation (EIBC), a new ammonia producing company. OCI, which is seeking to diversify its activities and benefit from Egypt's competitive edge in fertiliser production, has a 30 per cent stake in EIBC, which plans to produce 2,000 metric tonnes per day of ammonia. OCI will assume a portion of EIBC's set-up loans.
OCI is also about to finalise loans of $430 million to finance its own expansion. The loans will be used to consolidate OCI projects in Iraq, including its newly built cement plant in Kurdistan, due to begin production in 2006 with a capacity of 1.1 million tonnes annually.
OCI may face problems securing the necessary finance locally as its debt burden edges closer to 30 per cent of total capitalisation. As a hedge against possible default Central Bank of Egypt regulations do not allow loans to exceed 30 per cent of capital.
OCI's sister company, Orascom Hotel & Development (OHD), offered existing shareholders a chance to subscribe to its new LE180 million offer of 36 million shares priced at LE5. The offer opened on Sunday with shareholders allowed to buy up to 43.8 per cent of the total number of shares already held. The subscription period will last for a month, after which the company will begin preparations for further capital increases expected to raise a total of $50 million.
Alexandria for Mineral Oils Company (AMOC) remained in the limelight, posting first quarter results for 2005/2006 recording an impressive 236.5 per cent increase -- LE180.5 million -- in its bottom line figure. In a week in which the market trend was definitely down, though, AMOC shares ended the week at LE87, up from LE86.2.


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