The market showed increased correlation with international markets, losing some ground through the last 10 days on the back of a decline in European and American markets. The performance of the EGX30 followed that of the FTSE100 and Dow Jones, a tie that even the better than expected figures of some of listed companies failed to break. The decline in the Egyptian pound exchange rate with the dollar took a toll on the market for the first time in two months, the dollar showing strength against the pound to reach LE5.56. Observers attributed the decline to the end of summer season and the return of Egyptians to their jobs abroad, while importers increased their demand for foreign currency to finance import transactions. On a positive note, the Ministry of Petroleum signed six new petroleum agreements for oil and gas exploration with a total investment of $2.3 billion. GHABBOUR AUTO (GB AUTO): The company announced a joint venture with Brazilian company Marco Polo to establish a $70 million centre for chassis composition in the Suez governorate. The centre is expected to be complete by the end of the current year, would have a production capacity of 1,500 units during the first year of operation, and is expected to produce up to 8,000 units by 2014. The project aims to target the Egyptian, Middle East, African and European markets. ORASCOM DEVELOPMENT HOLDING (OD HOLDING): The Swiss-based parent company of Orascom Hotels and Development posted a 15 per cent increase in its total revenues in the second quarter of 2009 compared to the first half of 2008, to reach 152 million Swiss francs. The growth was driven by strong performance in the real estate market and, to a lesser extent, growth in the hospitality market. The deliveries of the company's budget houses project, Haram City, in 6 October governorate augmented revenues. The group delivered 118 units in Haram City versus 44 units in the first quarter and 131 units in El-Gouna, versus 80 units in the first three months of the second quarter of 2009. TALAAT MUSTAFA GROUP (TMG): Company officials arranged last week a road show in Iraq, Jordan, Sudan, Algeria, Saudi Arabia and the UAE. During the road show, it was announced that the first phase of Madinaty will be delivered in April 2010, while TMG is continuing in building phases two and three, which are expected to be delivered by 2011. The first phase includes 2,500 villas and 18,000 apartments. The company will also build its third Four Seasons hotel in Egypt in Madinaty. However, TMG did not disclose the investment costs for the project, and said that the build-up time has not yet been determined. The company posted a 27 per cent decline in net profits during the second quarter, a decline that was attributed to the increase in the cost of building materials in addition to paying taxes on the revenues of sales of Madinaty units. EFG-HERMES: The largest local investment bank reported LE382 million of net profits during the second quarter of 2009 down from LE807 million during the same period of last year and were predominantly booked through investment banking operations. Meanwhile, the revenues increased by 15 per cent during the second quarter compared to the first quarter of 2009 to reach LE271 million as capital markets improved. TELECOM EGYPT (TE): Egypt's fixed line monopoly posted a 10.7 per cent growth in its revenues for the first half of 2009, driven by strong voice revenues. Voice revenues were a main area of concern as strong competition in the mobile market was putting pressure on TE's takings. Internet and data revenue also contributed to the increase. The increase in revenue came despite poor performance during the second quarter. The company tightened its credit policy by reducing the "length of time between payment default and subscriber's disconnection", which Beltone said will be a one-off. Total fixed-line subscribers reached 9.8 million at the end of June. Net profits increased by 25.7 per cent to reach LE1.384 billion. Beltone commented on the earnings figure by saying that it does not expected the increase to be sustainable as the second half would include annual salary increases that usually pressure revenues. VODAFONE EGYPT (VFE): Some 45 per cent owned by TE, VFE contributed around LE282 million to TE's bottom line. VFE increased its quarterly mobile additions for the fifth consecutive quarter. It ended June with a total of 20.37 million subscribers, with net additions of 1.429 million subscribers during the quarter. Compiled by Sherine Abdel-Razek
