Egypt's Al-Sisi offers to host talks to support DRC peace process in call with Tshisekedi    Cabinet grants golden licenses to MAC, Deli Egypt for EGP 15.1bn in new investments    Egypt, Canada sign development agreements worth EGP 552m for women's empowerment, food security    Egypt's Abdelatty proposes hospital project, infrastructure support in Gambia    Egypt's Suez Canal Authority seeks African market expansion with Namibia port deal    Egypt explores opportunities to expand sustainable environmental investment in natural reserves    Egyptian investment ministry outline plans to strengthen trade ties with Africa    UK offers tax breaks to lure Egyptian firms to London bourse – ambassador    Egypt advances strategy to reduce public, external debt    Gaza death toll climbs as winter cold intensifies humanitarian emergency    Egypt, China discuss sustainable Gaza ceasefire and Sudan truce    GENNVAX launches largest regional vaccine manufacturing facility with $150m investment    Health Minister Discusses radiology upgrade with Curagita, ACH    Central Bank of Egypt, Medical Emergencies, Genetic and Rare Diseases Fund renew deal for 3 years    Egypt's SPNEX Satellite successfully enters orbit    Egypt unveils restored colossal statues of King Amenhotep III at Luxor mortuary temple    Egyptian Golf Federation appoints Stuart Clayton as technical director    4th Egyptian Women Summit kicks off with focus on STEM, AI    Egypt's PM reviews major healthcare expansion plan with Nile Medical City    UNESCO adds Egyptian Koshari to intangible cultural heritage list    UNESCO adds Egypt's national dish Koshary to intangible cultural heritage list    Egypt calls for inclusive Nile Basin dialogue, warns against 'hostile rhetoric'    Egypt recovers two ancient artefacts from Belgium    Egypt, Saudi nuclear authorities sign MoU to boost cooperation on nuclear safety    Giza master plan targets major hotel expansion to match Grand Egyptian Museum launch    Australia returns 17 rare ancient Egyptian artefacts    China invites Egypt to join African duty-free export scheme    Egypt calls for stronger Africa-Europe partnership at Luanda summit    Egypt begins 2nd round of parliamentary elections with 34.6m eligible voters    Egypt warns of erratic Ethiopian dam operations after sharp swings in Blue Nile flows    Egypt golf team reclaims Arab standing with silver; Omar Hisham Talaat congratulates team    Egypt launches Red Sea Open to boost tourism, international profile    Sisi expands national support fund to include diplomats who died on duty    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    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
Sherine Abdel Razek 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.