The market is maintaining its upward trend supported by positive macroeconomic news. Individual local investors returned to inject their investments in the market and foreigners end most of the trading sessions as net buyers. The EGX30 maintained its position above the 6,000 points threshold, boasting more than a 30 per cent gain since the beginning of the year. News of the pending flotation of Bank of Alexandria added some enthusiasm to the market that hasn't seen such offerings in more than a year. Meanwhile, the increase in international oil prices to more than $72 per barrel fuelled a rally for listed companies related to oil services, like Maridive, Sidi Kreir Petro Chemicals (Sidpec) and Alexandria for Mineral Oils (AMOC). On the regulatory front, President Hosni Mubarak issued two decrees establishing the Financial Services Authority and further regulating the Egyptian Stock Exchange. The new authority will combine non-banking financial services under one agency to increase the efficiency of these services. The new regulations pertaining to the stock exchange aim to increase the efficiency of trading, and increase the exchange's ability to monitor companies and prevent code violations. Another positive development is news that the Ministry of Investment is studying the establishment of a credit rating agency to facilitate the process of issuing corporate bonds. The ministry is planning to invite a number of local and international financial institutions to become shareholders in the new company. A survey by the ministry has shown that difficulty in obtaining a credit rating is one of the main obstacles facing companies willing to issue corporate bonds. INTERNATIONAL COMPANY FOR AGRO INDUSTRIAL PROJECTS (BEYTI): The local dairy and juice manufacturer was acquired by the International Dairy and Juice Company (IDJ) -- a joint venture between the Saudi dairy giant Al-Marai and PepsiCo -- for LE645 million. Around 80 per cent of the deal value will go to the National Bank of Egypt, Faisal Islamic Bank and Banque du Caire, and the remainder will go to the Shetta family that previously owned 100 per cent of Beyti. According to EFG-Hermes, Egypt and Saudi Arabia are both net importers of dairy products, leaving room for growth of local producers. Additionally, fluid milk per capita consumption in Egypt in 2008 was nearly 19.7 kilos per annum and in Saudi Arabia 38.5 kilos -- both significantly below developed country consumption, with consumption rates in the US and EU hovering around 93 kilos and 69 kilos respectively. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): In a new development in the dispute over the ownership of the company, France Telecom filed a complaint with the Capital Market Authority (CMA) for refusing its recent offer to acquire minority shares in Mobinil at the price of LE237 per share. France Telecom is basing its complaint on the right to buy Mobinil's shares at LE237. The CMA is expected to make a decision within 60 days of its receipt of the complaint. ORASCOM TELECOM HOLDING (OTH): The Tunisian arm of the company, Tunisiana Telecom, a joint venture between OTH and Kuwait's Wataniya, will list soon on the Tunisian stock exchange along with five other Tunisian companies. According to Reuters, OTH already stated in its first quarter earnings release that it is evaluating the potential initial public offering of both its Algerian "Djezzy" and Tunisian subsidiaries. SIXTH OF OCTOBER DEVELOPMENT & INVESTMENT (SODIC): The real estate developer revealed plans to establish 2,200 hotel rooms through a number of projects during the coming period. Commenting on the news, CI Capital said it confirms the solid demand for property, which encourages leading developers to launch new housing projects. Compiled by Sherine Abdel-Razek
