The Federal Reserve's decision to lower the discount rate by a further 0.25 per cent to reach 4.25 per cent pulled the market from its mid-week relapse, pushing it above the 10,000 points threshold again. The week ending 13 December witnessed a profit taking activity which took advantage of the market's recent uninterrupted upward trend. However, an increased interest by foreigners following the Federal Reserve's move gave the market a pat on the back, compensating for losses incurred earlier. Foreigners were net buyers, with buying orders exceeding selling transactions by LE343 million. Overall market transactions came at LE133 billion. The upward trend is expected to last for a while, especially after the Central Bank of Egypt's (CBE) decision to maintain overnight deposit and lending rates at 8.75 per cent and 10.75 per cent, respectively, for the 12th month in a row. The decision was based on a drop in inflation rates to 7.5 per cent in October and 6.8 per cent in November. The decision of both the Federal Reserve and CBE rendered the stock market a more profitable investment over bank deposits, whether in local currency or in dollars. This augments the possibility of the market maintaining its healthy performance. Meanwhile, news on the macro-economic level was also encouraging, with Prime Minister Ahmed Nazif stating that economic growth over the past four years resulted in a decline in unemployment rates, from 11 per cent in 2003 to nine per cent in 2007. Moreover, Suez Canal revenues -- a main source for hard currency -- rose to $412.8 million in November, compared to $337.8 million in November, 2006. ORASCOM CONSTRUCTION INDUSTRIES (OCI) made headlines by selling its cement activities to the French cement group Lafarge, and signing an agreement with the Arab Contractors Company and French Vinci to develop transportation projects through the Public Private Partnership (PPP) system. The debut project will be a tunnel linking the eastern coast of the Mediterranean city of Port Said with its western coast. Furthermore, Sorouh Real Estate -- Abu Dhabi's leading real estate Company -- awarded OCI a $41 million contract for infrastructure and landscaping works on the new Saraya Development real estate project in Abu Dhabi. The contract is part of an initial phase of the mixed-use real estate development project encompassing the construction of 30 towers with views of the Gulf. ORASCOM TELECOM HOLDING (OTH) denied news in the Sunday Times that it plans to sell OTH for $17 billion. OTH founder and CEO Naguib Sawiris said, "Orascom Telecom is not on auction and my family and I have no interest in exiting the telecommunication industry, but view ourselves as long-term strategic players." Some 43.5 per cent of OTH is free floated, and Sawiris owns 50 per cent plus one golden share in Weather Group. The remaining 6.5 per cent is owned by the Sawiris family. SIXTH OF OCTOBER FOR DEVELOPMENT AND INVESTMENT (SODIC) entered a partnership agreement with the Lebanese construction company Solidere for two construction projects in Egypt, at an approximate investment value of $4 billion. The first project is West Town in Sheikh Zayed City at an investment cost of $2.4 billion. The second is East Town in new Cairo, worth $1.6 billion in investment. The projects will include residential buildings, offices, shopping malls, amusement centres and public gardens. Solidere was founded by the late Lebanese prime minister Rafik El-Hariri, and played a leading role in rebuilding Beirut after the Civil War. Compiled by Sherine Abdel-Razek
