Mixed sentiments overshadowed the market during the week ending 12 June, with foreign investors liquidating their holdings. This came on the back of worries on the global market due to a spike in oil prices and negative indicators about the US economy. A limited revival in the last two days of the trading week failed to offset the negative effect of foreign selling, with the CASE30 index losing around three per cent through the week. Meanwhile, the week witnessed the listing of the first two companies in the new NileX bourse, a new local stock exchange for small companies and a move that is seen by many as a means of finance for thousands of small-sized companies. According to Capital Market Authority Chairman Ahmed Saad, there are currently 373 companies listed in the CASE with a market cap of around LE850 billion, compared to 1,152 companies in 2002 with a market cap of LE113 billion. ORASCOM TELECOM HOLDING (OTH) applied for the approval of the Cairo and Alexandria Stock Exchange (CASE) to decrease its paid-in capital to LE1.028 billion, by cancelling its 61.9 million treasury shares. OTH bought back these treasury shares, including London-traded Global Depository receipts, last month through a tender at LE83 per share. It is seeking to buy 12 million shares more in a similar tender that ends on 30 June. Naguib Sawiris, CEO of OTH, was quoted recently as saying that the company's share buyback plan will support the share price through the reduction of the amount of free float in the market. It will also be a source of investment for the company to use its excess liquidity. TELECOM EGYPT (TE), the fixed line monopoly, has not yet finalised an agreement with local mobile operators on reducing the fixed-to- mobile tariff to LE0.30 per minute day and night, from the current LE0.45. Press reports early this week said that TE and the mobile operators will split the value of the call on a 40-60 per cent basis as is the case currently. On a related note, the National Telecommunications Regulatory Authority (NTRA) is expected to launch mobile number portability (MNP) for business subscribers next month. The service was launched for individual subscribers in April. The service gives subscribers the right to migrate from one mobile network operator to another while keeping their old numbers. Business subscribers represent 20 per cent of total subscriber base and 80 per cent of revenue for mobile operators. ORIENTAL WEAVERS, the leading rug manufacturer, is to sell 941,291 treasury shares (or 1.7 per cent of its outstanding shares) to a strategic Gulf investor, rumoured to be Amwal Al-Kaleej equity group, between 11 June and 8 July. The value of the planned offering is around LE55 million, and is expected to be followed by a similar move to increase the Gulf investor's share in the company. NATIONAL BANK FOR DEVELOPMENT (NBD) will raise its paid-in capital by LE500 million to LE1.5 billion through issuing new shares between 29 June and 28 July. The new issue will include 50 million shares which will be sold to existing shareholders at a par value of LE10. The move comes in line with the agreement between Abu Dhabi Islamic Bank and the Central Bank of Egypt when the former bought 51.3 per cent of NBD in mid-2007. Back then, Abu Dhabi Islamic Bank agreed to raise the bank's paid-in capital to LE1 billion by the end of 2007, then to LE1.5 billion by June 2008 and finally to LE2 billion by 2009. NBD is still loss-making and the new owners are restructuring it to convert it into an Islamic bank. AL-EZZ STEEL REBARS, also known as Ezz Steel, acquired 243,570 shares of Ezz Dekheila Steel to increase its stake in the latter to 52.1 from 50.3 per cent. Ezz Steel bought the shares from an unnamed buyer for LE371 million, with an average price of LE1,525 per share which is slightly above the closing price of the share the day before the sale. As the market cap of Ezz Dekheila comes at around LE20.8 billion, Ezz Steel's stake is valued at LE10.5 billion, equivalent to 68 per cent of the total value of Ezz Steel. Ezz Steel has an annual production capacity of 5.3 million tonnes, to which Ezz Dekheila contributes 2.7 million. ORASCOM CONSTRUCTION INDUSTRIES (OCI)'s capital increase from LE1.009 billion to LE1.073 was approved by CASE's listing committee. The capital increase includes more than 12.77 million shares at a share value of LE5, and represents Abraaj capital's stake in OCI as part of the deal through which OCI bought the Egyptian Fertilisers Company. Compiled by Sherine Abdel-Razek
