The market reached a peak through the last 10 days to break the 7,500 points level for the first time since October 2008. The surge came on the back of an increased interest in the market's blue chips, like Orascom Telecom and Orascom Construction Industries, due to positive news related to them and a consequential increase in foreigner interest in these companies. On the macroeconomic level, Egypt's annual urban inflation rate was 12.2 per cent in March, which is lower than expected and would mean that the Egyptian Central Bank would keep key interest rates at their current levels. TALAAT MUSTAFA GROUP (TMG): The local developer sold LE1.2 billion worth of real estate units in the first quarter of 2010, up 172 per cent on a year earlier. Meanwhile, the company is awaiting further developments in the case of its founder and ex-chairman, Hisham Talaat Mustafa, due 26 April. Mustafa, a member of parliament affiliated with Egypt's ruling party, is appealing against a court ruling sentencing him to death for paying a security guard to kill a Lebanese singer. EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): The local mobile operator's chairman, Alex Shalabi, told Reuters that the firm's two major shareholders, Orascom Telecom and France Telecom, will announce a resolution to their long-running dispute within a month. Orascom Telecom's executive chairman, Naguib Sawiris, met with France Telecom's new chief executive, Stephane Richard, in Paris late in March and, "there are intensive discussions [ongoing] between both parties," according to Shalabi. ORASCOM TELECOM HOLDING (OTH): Djezzy, the Algerian unit of OTH, paid $113 million to the Algerian tax authority for unpaid taxes that authorities say Orascom owes for 2005-2007. The company told the stock exchange Tuesday it had no "significant event" to disclose in response to rumours in the past week about a possible merger or unit sale. Shares in Orascom jumped sharply on the back of rumours it was in the process of liquidating its Algerian unit, or that it might merge with MTN, the South African telecom giant. Egyptian investment bank EFG-Hermes has outlined scenarios for a possible sale of Orascom Telecom to Weather Investments, the investment vehicle of Orascom's executive chairman, Naguib Sawiris. Such a sale could value Orascom Telecom at $9 billion. EFG-Hermes said Weather Investments, or a consortium led by it, was the most likely buyer due to the clear picture it would have regarding a potential sale of Orascom's Algerian unit. The note said a purchase of 100 per cent of Orascom would be difficult for any other buyer, as Sawiris is unlikely to sell. The note mentioned a second scenario: that Orascom merges with another global telecom service provider. But it did not provide further details on this option. GB AUTO: Egypt's largest passenger car producer and distributor will represent Japanese tyre maker Yokohama locally. Under the agreement, GB Auto will distribute Yokohama tyres for passenger cars, semi-trucks, trucks, buses and construction equipment. "The addition of the Yokohama representation should see the tyres line of business post revenues in the LE240 million range this fiscal year," a GB Auto statement cited CEO Raouf Ghabbour as saying. GB Auto currently distributes Lassa tires in Egypt and made sales of LE60 million in 2009. The company also plans to raise car production capacity to 90,000 vehicles by mid-2010, from 30,000 in 2009, to meet growing domestic demand. PALM HILLS DEVELOPMENTS (PHD): The local developer's LE699 million rights issue was 99 per cent subscribed, it has been revealed. The proceeds will be used to speed up construction and finance its plan to expand into hotels and other sectors to hedge against the volatility of home sales. Under the rights issue, which closed 6 April, each legacy shareholder was entitled to one share at LE2 each for every two shares held. ORASCOM DEVELOPMENT HOLDINGS (ODH): The Swiss-based company signed a partnership with the French luxury group LVMH to build two luxury resorts, one in Oman and another in Egypt. While Orascom will finance the construction of the two resorts, LVMH will manage it in return of a percentage of sales and profits. The hotels, to be called Cheval Blanc, are to be opened by 2012. The French group said the resorts would give it exposure to the long-term growth potential of the luxury hotel sector as well as new selling points for its brands. Compiled by Sherine Abdel-Razek
