The market witnessed limited declines during early trading sessions this week following an upward trend during most of last week's sessions, supported by a rebound in international markets. The relative setback was triggered by a profit taking spree and a slow down in transactions, normal features of shortened trading sessions during Ramadan. ORASCOM TELECOM HOLDING: The international mobile operator is seeking small acquisitions in the coming period, ones hovering around the $1 million mark, not the $1 billion mark, said chairman and founder Naguib Sawiris in a televised interview. The interview came after the company withdrew from bidding for a controlling stake in a Moroccan phone operator due to fierce competition with heavyweights in the telecommunications sector like Qatari Qtel and UAE-based Etisalat. Sawiris also said that there was no reason to sell any of OT's assets to repay debts owed by Weather, an Italian holding company owned by Sawiris and that owns 52 per cent of OT shares. Weather announced last week that it wants to buy back 850 million euros worth of bonds. EZZ STEEL REBARS: Egypt's largest steel producer, with a market share of 65 per cent, posted a 90 per cent fall in its first half year net profits to reach LE101 million. The firm, which gave no second quarter figures in its statement, made a net profit of LE66 million in the first three months, suggesting a slowdown to around LE35 million in April-June. Paul Chekaiban, the company's managing director, said the Egyptian market remained strong during the first half of 2009, and although domestic prices have declined in line with international prices, the company continued to enjoy a sustained level of demand for its products. The first six months saw sales figures reaching LE6.4 billion compared to LE11.1 billion a year earlier. The local investment bank Beltone said in a note that the main challenges in the second half of 2009 are "weaker consumption of rebars in the local market compared to the first half of 2008, and the ongoing losses to be incurred by Ezz Flat Steel as the facility remains closed. Back in April when the company reported its first quarter results, Ezz Steel blamed its fall in net profit on declining steel prices and weak export markets. Chekaiban said that Ezz Steel's flexible business model should enable the firm to operate profitably even during an industry downturn. The company says it will seek a LE2 billion loan to finance a direct reduced iron plant with a capacity of 1.8 million metric metres. Direct reduced iron is an alternative to scrap or iron ore. The company said it expects to start production at the plant during the second half of 2011. The company plans to finance 70 per cent of the project through debt, which is being raised by the National Bank of Egypt and Banque Misr." EGYPT KUWAIT HOLDING (EKH) said it set up a fertiliser and petrochemical company in cooperation with other Egyptian and Gulf investors. The new company will have paid-in capital of LE500 million with EKH holding 32 per cent. The new company is set to produce 1.5 million tonnes of fertilisers a year and will start production in a couple of years. CREDIT AGRICOLE EGYPT (CAE) reported a 26 per cent decline in its net income in the second quarter to reach LE76.8 million. The drop came on the back of a decline in net interest rate income and investment income, together with higher booked provisions in addition to a higher effective tax rate. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): The National Telecommunications Regulatory Authority (NTRA) said it is finalising the procedures needed to grant Mobinil five megahertz of the 3G telecommunications spectrum in return for LE1.1 billion. Originally, Mobinil was supposed to pay LE750 million, in January 2009, upon receiving 2.53 megahertz on the 1800 band of the 3G telecommunications spectrum. However, because Mobinil has not received its portion, it has not made the payment as yet. Compiled by Sherine Abdel-Razek
