Gaza under Israeli siege as death toll mounts, famine looms    New accords on trade, security strengthen Egypt-Oman Relations    Egypt launches public-private partnership to curb c-sections, improve maternal, child health    Egypt Post discusses enhanced cooperation with Ivorian counterpart    EMRA, Elsewedy sign partnership to explore, develop phosphate reserves in Sebaiya    Opella becomes first global consumer healthcare firm to gain B Corp status    Philip Morris Misr announces new price list effective 1 July    EGX closes in red on July 1st    Gold gains as investors flee to safe havens    Egypt, Iran FMs discuss Gaza truce, nuclear talks revival    Egypt's Environment Minister calls for stronger action on desertification, climate resilience in Africa    Egypt in diplomatic push for Gaza truce, Iran-Israel de-escalation    Egypt teams up with private sector to boost university rankings    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger    Egypt, Tunisia discuss boosting healthcare cooperation    Egypt's commodity reserves "very reassuring", some stocks sufficient for 9 months — trade chief    Egypt's FM, China's Wang discuss Iran-Israel escalation    Sisi launches new support initiative for families of war, terrorism victims    Egypt's GAH, Spain's Konecta discuss digital health partnership    Grand Egyptian Museum opening delayed to Q4    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Egypt discovers three New Kingdom tombs in Luxor's Dra' Abu El-Naga    Egypt launches "Memory of the City" app to document urban history    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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



A turn for the worse
Published in Al-Ahram Weekly on 22 - 02 - 2001


By Sherine Abdel-Razek
The market maintained its downward trend during the week ending 15 February amid increasing regional volatility and a ratbag of rumours that, in the absence of real economic news, continued to shake investors' confidence.
The all-share Capital Market Authority Index nose-dived 7.76 points to close at 623.57. And while the period saw a sharp increase in market turnover, which reached LE923.3 million, this did not stem from a revival of investor interest but from the LE417.30 million merger between PepsiCo's Tasty Foods and Chipsy, the potato chips producer.
Big-cap telecom stocks ended down: reflecting the market drop, MobiNil closed at LE70.78, registering a LE3.36 decline amid speculation over a possible IPO by Egypt's other mobile operator, Click GSM. Orascom Telecom's (OT) shares also fell, dropping LE3 to close at LE40.21. It was not all bad news for OT though: the regional telecom company received a boost with the Algerian government's announcement of plans to offer GSM cellular network licences by May 2001. OT's management believes that a successful bid for the licence will further consolidate its regional network.
Media Production City had a reasonable week, recording a 74 per cent increase in net profits, up from LE31.01 million to LE54.25 million. That the increase was based primarily on a rise in interest income, rather than operational income, tempered the enthusiasm of most analysts, however.
Rumours that Kuwaiti investors are currently negotiating to acquire the Egyptian American Bank (EAB) saw its shares end at LE33.04, LE2.20 higher than at the week's start.
Meanwhile, the National Société Générale Bank, had some news of its own. Shareholder approval of the bank's proposed 1:2.75 stock dividend increased the bank's issued capital from LE220 to LE300 million. The bank's 13 February general assembly meeting also approved a LE1 per share cash dividend to be distributed on 11 March, 2001. The bank has attracted a great deal of attention recently by being the first to offer mobile banking services in Egypt. Yet still NSGB stocks fell by six per cent during the week to end at LE32.03.
Neither did the cement sector fare well last week. Suez Cement's announcement that it will convene an extraordinary general meeting on 24 February to win approval for plans to increase its capital by a maximum of 25 per cent via a strategic investor failed to buck the market's downward trend, and its shares ended the week at LE36.33.
The week also saw a test run of the Bourse's new electronic trading floor. The new trading system was originally planned to be operational in early 2000. Delays in upgrading the necessary infrastructure, though, have consistently delayed its launch.
The week also saw Egypt choose both Morgan Stanley and Merrill Lynch as consultants and underwriters of its new sovereign eurobond issue. The two investment banks will advise the Egyptian government on the value and timing of the offering. Though not yet fixed, the value of the offering is expected to be in the neighbourhood of $500 million.
Recommend this page
Related stories:
Digestive lull 15 - 21 February 2001
Related links:
Cairo and Alexandria stock exchanges
© Copyright Al-Ahram Weekly. All rights reserved
Send a letter to the Editor


Clic here to read the story from its source.