Doubts around the VimpelCom-Weather deal are weighing down on both Orascom Telecom Holding (OTH) and market shares in general. A profit- taking wave is compounding the problem and market analysts expect the main market index, EGX30, to head south losing the support it has at the 6,800 unit level. On the macroeconomic level, foreign direct investments (FDIs) channelled to Egypt increased by 42.2 per cent in the fourth quarter of fiscal year 2009-2010 to reach $2.42 billion, compared to $1.7 billion in the third quarter. The European Union was the largest contributor of FDIs in the period from April to June, registering $1.89 billion. European investments fell by $1.18 billion from the $2.07 billion lured in the third quarter. Britain's investments ranked first among counties investing in Egypt with $1.37 billion. EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): Egypt's largest mobile network operator witnessed a decline in its net profits during the third quarter of 2010 to reach LE280, compared to LE491 million last year .The company cited lower usage and higher advertising costs during the Muslim fasting month of Ramadan. Sales revenue grew more than seven per cent year-on-year to LE2.74 billion. Mobinil said it attracted 2.3 million new subscribers in the quarter, bringing its total subscriber base to 28.4 million. In the first half of the year, the number of new subscribers came to one million less than a year earlier, a decline the company blamed on delays in the rollout of a new dialling system. Last week Mobinil announced it is considering borrowing as much as LE2 billion to finance the expansion of its network and services. The Central Bank of Egypt (CBE) has blocked Mobinil, jointly owned by France Telecom and Orascom Telecom, from further borrowing because its creditor banks have reached the limit they can lend to any one client. When calculating single client loans, the CBE also takes Orascom Telecom's loans into consideration because Orascom owns part of Mobinil. The mobile network said in September the firm was considering issuing bonds worth LE1 billion. The firm issued LE1.5 billion in bonds in January. EL-SEWIDY CABLES: The region's leading cables producer is considering setting up a cable manufacturing plant in Libya by the end of 2011, with total investments of $50 million with expected revenues of 20 per cent of the investment. The company is the Arab world's largest listed producer of cables used in power transmission and telecommunications, and has plants in countries from Egypt to Ethiopia, Nigeria, Saudi Arabia, Algeria and Zambia. It exports to the Middle East and North Africa, Spain, Portugal, Eastern Europe and Brazil, with African countries accounting for 30 per cent of its exports. El-Sewidy announced in September that it would increase output during 2010 and 2011 to reach 160,000 tonnes and 185,000- 190,000 tonnes respectively. The company, which also produces equipment for wind farms, plans to produce 300 towers in 2012 at its wind towers plant in Ain Sukhna on Egypt's Red Sea coast. El-Sewidy owns 90 per cent of Spanish wind turbine maker Manuel Torres Olvega Industrial, and operates a plant manufacturing electrical metres in Slovenia. ORASCOM TELECOM HOLDING (OTH): Casting fresh doubts on the Russian VimpelCom deal to buy Orascom's assets, the Algerian government said on Monday it will not begin talks on nationalising Djezzy, the local arm of OTH, until next year. "The investment bank which will evaluate Djezzy is due to be selected in January," Algerian Telecommunications Minister Moussa Benhamadi told reporters on the sidelines of a parliamentary session. "Talks to acquire Djezzy will take place during the first half of 2011." Asked about the role of VimpelCom, he said: "We will negotiate with OTH because it is our partner and the only owner of the licence." CI Capital analyst Amr El-Alfi told Reuters, "What the Algerian government is doing is basically procrastinating and pushing back or extending the timeline for resolving this whole issue as a way of pressuring Orascom Telecom... and maybe trying to spoil the deal." However, he added that "this doesn't necessarily mean the deal is going away." OTH has been in a dispute with the Algerian government since late last year when Djezzy was hit with back-tax claims. It has also been blocked from transferring money in or out of the country. TALAAT MUSTAFA GROUP (TMG): The real estate developer has started selling units at its Saudi project Nasamaat Al-Riyadh. The apartment and villa complex covering three million square metres northeast of the Saudi capital Riyadh has an investment cost estimated at seven billion Saudi riyals. TMG is developing the project through a joint venture company in cooperation with its local partner Al-Oula Real Estate Development. Meanwhile, the Egyptian Ministry of Housing, Utilities and Urban Development will receive about 4,000 housing units in TMG's flagship project Madinaty by the end of next year, according to an official source who explained the ministry will receive 400 units this year, with the remaining units to be delivered in 2011. Compiled by Sherine Abdel-Razek
