Breaking new records every week, the market continues to give portfolio investors reasons for celebration. Overall market capitalisation hit the threshold of LE918 billion for the first time ever thanks to buoyant activity, pushing the daily value of transactions during the week ending 6 March to LE2.7 billion. The CASE30 index closed at 11,500 points. According to the Chairman of the Cairo and Alexandria Stock Exchanges Maged Shawqi, a new bond trading system will be introduced soon with the aim of expanding the market. Shawqi told Reuters news agency that he met with experts from the Italian stock exchange in Milan last week to discuss the issue. The new system should boost trading in government bonds. Egypt's bond market has outstanding government bonds worth LE67.6 billion, and corporate bonds coming at LE5.1 billion at the end of 2007. NAEEM HOLDING, the financial services company, posted a net profit of $107.6 million in 2007, marking a 419 per cent increase from 2006 levels. A company senior official was quoted by Reuters as saying that the whopping increase was fed by the company selling its 9.79 per cent stake in Al-Watany Bank of Egypt to the National Bank of Kuwait (NBK) in October for $106 million. The company's turnover increased 371 per cent in 2007 to $136.58 million from $29.02 million in 2006. Naeem Holding operates across four lines of business including brokerage, asset management, private equity and corporate finance. It has issued GDRs to be traded on the London Stock Exchange starting the end of this month. BANQUE DU CAIRE (BC)'s potential buyers have been shortlisted to five by the Central Bank of Egypt (CBE), and are expected to begin due diligence studies soon. The list includes the UK-based Standard Chartered, Saudi Arabia's Samba Financial Group, the National Bank of Greece, Dubai's Mashreq bank and a consortium of Jordan-based Arab Bank and the Arab National Bank of Saudi Arabia. The government plans to sell 67 per cent of the bank to an investor and another 28 per cent through an IPO. While highly controversial, the government argues that privatising the bank which is burdened by a heavy portfolio of non-performing loans is the only way out of a LE14 billion deficit. Initially, 12 potential buyers expressed interest in buying the offered stake in the state-owned BC, and submitted technical offers to a committee formed by CBE to oversee the sale. ORASCOM TELECOM HOLDING (OTH) announced it was able to secure all commitments and prerequisites for a five- year debt facility totalling $2.5 billion. The debt facility is expected to bear an interest of 200 basic points over the rate offered by London Inter Bank (LIBOR), and the loan will be used to refinance the company's existing $2.5 billion in loans. An OTH press release noted that, "the new facility will provide long-term financing that will allow the company to evaluate investment opportunities on a disciplined basis, or continue to return capital to its shareholders in light of favourable relative market valuations." ORIENTAL WEAVERS (OW) is planning to establish a new manufacturing complex in 10th of Ramadan City to meet increased demand. The complex will house 17 factories on an area of 190,000 square metres. Initial estimates of the investment cost of the project, which will be financed through 55 per cent debt and 45 per cent equity, come at around LE1.3 billion. The first phase of the venture will begin production by the end of 2009, and will have an annual turnover of LE1.56 billion. The plan is to export 75 per cent of the production of this initial phase. OW is considered the world's largest machine-made rug manufacturer. On another positive note, OW posted a 21 per cent increase in its net income for fiscal year 2007 to reach LE323.8 million, from LE271.2 million in fiscal year 2006. Compiled by Sherine Abdel-Razek
