The market is hesitantly inching upwards with increased buying by foreigners on the back of a slight recovery in external economic indicators, such as the employment rate in the US. However, it hasn't surpassed the 7,000 points threshold that it crossed in mid-February before retreating again in a profit-taking spree that is still shadowing activity. Indicators on the macro level came mixed. Suez Canal revenues reached $334.1 million in February versus $301.8 million a year earlier. However, on a monthly basis Suez Canal revenues saw a lower year- on-year growth of 10.7 per cent in February versus 15.4 per cent in January. Weak trade activities due to bad weather conditions are to be blamed for the drop with February marking a 12.9 per cent retreat in revenues and 11.4 per cent in number of vessels respectively compared to January. On the other hand, net international reserves witnessed a slight monthly increase -- its tenth in a row at 0.33 per cent in February -- to reach $34.324 billion. The increase comes in line with increased foreign investor appetite to invest in government treasury bonds and bills. ORASCOM TELECOM (OT): The company's appeal against the Algerian authorities' claims that it has to pay $597 million in tax dues for the three-year period ending 2007 was rejected. A statement issued by the company noted that it would appeal the rejection. To do so, Orascom will have to pay 20 per cent of the remaining balance of taxes and penalties the Algerian government is claiming, or around $110 million. Orascom already paid $120 million, 20 per cent of the $597, in December in order to file its first appeal. The firm said it would now appeal to the Central Commission or an administrative court called the State Counsel. OT expects the tax claim to reduce its 2009 dividends as Djezzy -- its local operator -- represents its largest source of income. Orascom said the amount it had paid would be returned if the appeal were successful, but noted: "On the other hand, [Orascom] is exploring all its other strategic options." ARAB COTTON GINNING (ACG): The company has sold 22 land plots representing a total of 12,000 square metres at LE90 million. The sold land is a part of its land bank in Zefta, Gharbiya governorate, where ACG still owns 48,000 square metres. The value of the sold land will be paid in instalments: the first comprises 50 per cent of the sale proceeds (about LE45 million) by 15 June 2010. The land plots will be delivered on that date. The remaining 50 per cent will be paid in equal quarterly instalments, each five per cent of the remaining value, starting 15 September 2010. ACG is an Egypt-based cotton ginning and trading company that operates through its subsidiaries, Egypt Cotton Ginning Company and Amwal Al-Arabia Cottons Company. The company's activities include cotton farming and trading, manufacture of fertilisers and pesticides, manufacture and trade in natural and artificial fibres and yarns, and purchase, lease and management of agricultural land. ASEK COMPANY FOR MINING (ASCOM): The mining arm of Citadel Capital is increasing its capital by LE100 million to reach LE350 million. The increase will be in cash only and is limited to existing shareholders. The increase will be used in financing its acquisition of the 51 per cent stake it does not currently own in Asek Emirates, as well as to inject money in its new project to search for gold in Ethiopia. News of the capital increase came on the same day the company released its consolidated financial results for 2009, posting a net profit of LE13.937 million compared to a net profit of LE30.839 in the same period a year earlier. TELECOM EGYPT (TE): A "sizable" stake in Egypt's fixed line monopoly would be sold within the next two years, Minister of Communications Tareq Kamel said in an interview last week. "Definitely there are plans in the future to offer more shares," Kamel told Bloomberg Television in Singapore. "Within the timeframe of two years, there could be an additional stake floated on the Cairo Stock Exchange. It would be definitely a sizable stake," he said, without specifying how much might be sold. According to regulations, if the government decides to sell a stake in the 80 per cent state owned company it would not exceed 29 per cent, to keep a controlling stake. A 20 per cent stake of the company was floated on the local bourse in December 2005 raising LE4.5 billion. GHABBOUR (GB) AUTO: The company reported an over six-fold rise in fourth quarter net income compared to the same period last year, to reach LE89.9 million. During a conference call held after the profits release, Raouf Ghabbour, the company's chairman, said: "In the last quarter specifically, we felt that the crisis was behind us." He added that the total market in Egypt for the year is going to be in excess of 200,000 cars, which represents 25-30 per cent growth compared to 2009. Ghabbour expects strong profits in 2010 and plans to start exporting buses and trailers to Middle Eastern and African markets from the second quarter. The firm's chief finance officer, Colin Sykes, said the firm expects to double its full year profit in 2010 on forecast revenue of between LE5.7 billion and LE6 billion. The company's full year results for 2009 showed a net profit of LE201.4 million on revenue of LE4.26 billion. GB manufactures, assembles, imports and distributes vehicles for Hyundai, Bajaj, Mitsubishi, Volvo and Mazda. Compiled by Sherine Abdel-Razek
