Transactions with speculative nature prevailed in the market during the week ending 3 April pushing the prices sharply at the beginning of the week and then stripping it of its earlier gains at the end of the week. However, the CASE30 ended the week in the black with a 1.5 per cent increase on the previous week's 11,371 points. The week's overall transactions came at LE19.8 billion. EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL), Egypt's largest mobile network operator, sent a release to the stock exchange saying it will extend the timeframe for activating 3G mobile services, as well as paying the LE750 million instalment on its licence fees, since it didn't receive the extra frequencies. MobiNil said the National Telecommunication Regulatory Authority (NTRA) was late in handing it the necessary and agreed upon frequency band to carry out the necessary tests before offering the service. NTRA reacted by threatening to impose delay penalties on MobiNil if it did not pay the instalment, stressing that it provided the company with the needed frequencies and sent it a letter on 1 April demanding it to pay the instalment. According to the release, MobiNil was meant to receive the frequency band on 17 January but NTRA did not say it was available until 27 March. Accordingly, MobiNil has told NTRA it will consider 30 March as the start date for the process and that it will pay the instalment on 13 June, instead of on 1 April. Meanwhile, MobiNil said it would need a period of three months and 13 days starting on 30 March to test and complete all the technical trials. Thus, services will start on 14 July. MobiNil announced earlier that companies involved in building the infrastructure needed for the 3G services have finalised around 80 per cent of the first phase, which includes investments of $200 million. The service will be provided in the areas determined in the 3G contract, namely Greater Cairo, Alexandria, Luxor, Hurghada and Sharm El-Sheikh. MobiNil rivals Etisalat Misr and Vodafone Egypt have been offering 3G services since May 2007. SUEZ CANAL BANK (SCB) posted zero net profit in 2007, the same as 2006 and in line with its expectations in light of its plans to restructure its non-performing loans and provisions. Meanwhile, the bank's income in 2007 grew 46 per cent to reach LE425 million. An increase in the net interest -- the difference between interest it pays and it receives -- rose to 1.18 per cent from 0.7 in 2006, pushing the net interest income by 115 per cent to LE171 million. Non-interest income grew by 20 per cent to LE254 million on the back of investment revaluation gains, dividend income and profit from the sale of investments. While the value of loans stood flat at its 2006 level of LE5.8 billion, customer deposits rose by 16 per cent to LE11.8 billion. According to an EFG-Hermes commentary on the results, lending growth will pick up more strongly in 2009, after SCB restructures its non-performing loans portfolio. SCB signed agreements to settle an estimated LE2.2 billion of non- performing loans in 2007. Moreover, in February, 2008, SCB announced the sale of an investment that will generate a capital gain of LE457 million to appear in bank results in the first quarter of 2008. TELECOM EGYPT (TE)'s general assembly meeting approved a cash dividend of LE1 per share for 2007, compared to LE0.8 recommended previously by the company's board of directors. The meeting also gave the green light to the sale of TE's 27.27 per cent stake in Internet Service Provider Nile Online and 16.64 per cent stake in EgyNet to Etisalat Egypt. AL-WATANY BANK OF EGYPT (WBE)'s new major shareholder, the National Bank of Kuwait (NBK), which currently holds 98 per cent of the bank, revealed plans to expand its local branches network in addition to offering new credit facilities. NBK said it aims at doubling its 26 branches within the coming two years. The bank also plans to focus on using surpluses with Gulf investors in general, and Kuwaitis in particular, to offer more credit to small- and medium-sized enterprises. EZZ DEKHEILA STEEL, owned by steel tycoon Ahmed Ezz, raised its ex-factory steel price to LE5,080 per tonne from LE4,550, effective 1 April. Company shareholders approved the move in a general assembly meeting last week in response to recent increases in the price of the main raw material, billet, in addition to hiking demand on the local market. Billet prices jumped to $820 per tonne from $775 per tonne. Ezz Steel group, including Ezz Steel Rebars and Ezz Dekheila, held a news conference last week to defend the company's position in the face of claims that it is monopolising the market and is the main reason behind skyrocketing steel prices. Company officials said there are more than 20 other steel producers in the market, stressing that increased demand by contractors -- who are stockpiling steel for the next six months -- has contributed to the increase in prices even more. According to officials, steel prices in Egypt are still lower than those in neighbouring Arab countries by $204 million, despite a 60 per cent increase in energy prices through 2007 in Egypt. Ezz group's profits hover around LE1.7 billion, generated from investments of LE15 billion. TALAAT MUSTAFA GROUP (TMG)'s real estate sales recorded a 129 per cent increase during the first quarter of 2008, up from LE1.4 billion in the corresponding period of the previous year. Sales figures came in line with TMG's expectations which put overall sales during 2008 at LE12.5 billion.
