A strong selling spree weighed down on the market during the week ending 10 July, stripping the CASE30 of 3.85 per cent of its value to end at 9,567 points. Negative economic projections about the US economy and a spiral increase in the oil prices worldwide fed the decline, as foreign investors sold heavily in the previous two weeks. This trend was reversed during the week, but failed to offset the overall negative sentiment looming over the market. Analysts believe that the market has not hit bottom yet and there is strong potential for it to continue to fall. On the face of it, this sounds like a warning not to enter the market now as it is losing ground, but analysts point out that for the long-term buyer who wants to investment his money in stocks with a good yield in the future, the timing could not be better. EFG- Hermes, the largest investment bank in Egypt, recommends investors to continue accumulating shares in companies forming the CASE30 index. News on the macroeconomic level was encouraging; Egypt's revenues from the Suez Canal rose to $471.4 million, up from $358.8 million in June 2007. Moreover, the country's crude oil reserves increased by 221 million barrels in 2007/2008, to reach 4.2 billion barrels. Meanwhile, natural gas reserves went up by 7.3 trillion cubic feet to reach 76 trillion cubic feet. ORASCOM DEVELOPMENT HOLDING (OD Holding)'s hotel management business increased revenues by 34 per cent in the second half of 2008 to reach $76.5 million. During the six months ending in June 2008 OD Holding -- the Swiss-based parent company of Orascom Hotels and Development (OHD) -- increased the number of rooms under its management by around 1,000 to 6,025 in over 24 hotel properties. The company recently opened a 531-room Citadel Azur Resort in Sahl Hashish, and a four-star 287-room Marina Town Plaza hotel in Tala Bay, Jordan. Moreover, it held soft openings for its Royal Azur and Club Azur hotels in Makadi Bay, which add up 110 new rooms to OD Holding's hotel portfolio. On the other hand, sales revenues from the company's real estate activities grew to $185 million, compared to $45 million in the first half of 2007. This is attributed to the launching of two projects in Oman at the end of 2007, and to sales growth at existing projects, including El-Gouna in Egypt, The Cove in the UAE, and a real estate project in Mauritius. ARAB COTTON GINNING bought back five million of its shares equivalent to two per cent of the company's equity last week. Company Chairman Hani Olama said that revenues from the sale of the company's land in Damanhour will be reported in the financial statements of the next fiscal year. ARAFA HOLDING's net profits for fiscal year 2007/2008 surged by 23.8 per cent to $30 million, thanks to a positive net interest income and a drop in the company's effective tax rate from 17.7 per cent to 11.6 per cent. The retail line of business contributed 67.6 per cent to the group's net sales and 24.1 per cent to its net profit. A report issued by HC Securities commenting on the results noted that the retail LoB net sales were up by six per cent to $205.4 million. This, in spite of a slowdown in UK retail sales which dragged BMB (Arafa's UK retail subsidiary) sales down from 88.9 million sterling pounds in fiscal year 2006-2007 to 85.3 million sterling pounds in fiscal year 2007-2008. Concrete, Arafa's Egypt-based retailer, drove the sales growth since its sales increased from LE135.3 million in fiscal year 2006/2007 to LE154.1 million in 2007/2008. The company's extraordinary general assembly meeting has approved changing its fiscal year end from 31 March to 31 January. NAEEM HOLDING will withdraw its 18 per cent investment in the Saudi-based Naeem Investments, after the Saudi Capital Market Authority refused granting the latter an asset management licence. Naeem Investments had been active in the asset management business since 2001 under the umbrella of the Saudi Investment Bank. Alternatively, Naeem Holding plans to acquire a controlling stake in another already operating company in the Saudi market. PIONEERS HOLDING, the regionally expanding investment bank, said it expects its net income for fiscal year 2008 to be in the neighbourhood of LE400-425 million, thanks to the company's strong first half results and expected expansion in Saudi Arabia. The company also announced that its Saudi- based subsidiary received three new licences from the Saudi Capital Market Authority, including an asset management licence. Compiled by Sherine Abdel-Razek
