The strong two-month long upward momentum of the market was maintained during the week ending 1 November with the CASE30 index breaking a new all time high record. The index, tracking the performance of the 30 most actively traded companies, gained 4.2 per cent to end at 9,527 points. Moreover, the overall market turnover reached a whopping LE13.4 billion, one of the highest values of the overall weekly transactions ever. The increase in sales figures was partially backed by the execution of the National Bank of Kuwait (NBK)'s acquisition of 93 per cent of Al-Watany Bank of Egypt for LE5 billion. The US Federal Reserve's decision to reduce the interest rate on the dollar by a further 25 points, and the consequent drop in the exchange rate of the dollar, rendered local shares denominated in Egyptian pounds more appealing to investors. The buoyant performance was also supported by some new regulations related to the market itself. Financial companies working in activities related to the stock market (investment banks, brokerage companies, asset and portfolio management companies) can now apply for the licence to be market makers. As market makers, these companies will have the right to interfere at any time as a buyer or seller of the shares of certain listed companies to hedge against expected loss. Moreover, the Ministry of Investment last week gave the green light for the formation of "indices investment funds". Investors in these funds will put their money in the companies constituting the indices which would be of a diversified nature to minimise risks. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): The company posted an 18 per cent surge in its net profits during the first nine months of 2007 compared to the corresponding period of 2006 to reach LE1.39 billion. The rise in profits stemmed off a 31 per cent increase in MobiNil's sales figure to LE6.07 billion. Furthermore, the company's subscriber base witnessed a 69 per cent growth from 8.1 million in the end of September 2006 to 13.7 million subscribers in the nine-month period ending on September 2007. However, MobiNil revealed that its net income during the third quarter alone came to LE472 million, 8.5 per cent less than the comparable quarter of 2006 mainly driven by almost a 100 per cent hike in its operating expenses amid fierce competition with the other two mobile operators, Vodafone Egypt and Etisalat Misr. Last week the company sent a memo to the National Telecommunication Regulatory Authority (NTRA) protesting against its approval of Vodafone Egypt's (VFE) new promotional campaign. The "Best Five" campaign allows VFE's subscribers to communicate with up to five phone numbers at competitive prices, including free-of-charge communication with a fixed-line number for 60 minutes every month. Press reports quoted MobiNil's CEO, Alex Shalaby, as saying that the offer threatens free competition among mobile operators because such service resulted from VFE's partnership with Telecom Egypt, which owns a 45 per cent stake in Vodafone Egypt. On another note, MobiNil said it is currently in negotiations with banks for a LE1 billion loan to pay for the first instalment of its recently acquired 3G licence. ORASCOM CONSTRUCTION INDUSTRIES (OCI): Acquiring a further 50 per cent stake in National Steel Fabrication, OCI became the sole owner of the largest steel fabrication entity in the Middle East. OCI bought the stake from Athens-based Consolidated Contractors International Company for a total value of $13.5 million. NSF operations covers a wide range of steel processing activities including cutting, drilling, bending, welding, sand blasting and painting. That was not all for OCI. The company divested the 50 per cent stake it used to hold in the Egyptian Container Handling Company to the Dubai Ports World for $372 million. Dubai Ports has also acquired a 40 per cent stake in the company from other investors boosting its total stake to 90 per cent. NASR CITY HOUSING AND DEVELOPMENT (NCHD): Rumours about Beltone Investments' intention to sell its stake in NCHD were denied by Beltone's senior officials. Moreover the chairman of the company said that Beltone considers the investment in Nasr City Housing a strategic investment, and that they are even willing to acquire 100 per cent of NCHD if it is offered for sale. Beltone Investments together with its sister company Beltone Capital own 31.3 per cent of NCHD. EGYPTIAN KUWAITI HOLDING COMPANY (EKH): A new joint venture which brings together EKH and South Valley Cement was formed last week to build a new cement plant in Assiut governorate. This came after EKH's success in acquiring one of six licences offered last week by the government to establish new cement factories for LE22 million. Meanwhile, South Valley Cement is still waiting for the Industrial Development Authority to re-endorse its licence for a cement factory currently under establishment. The company had obtained a licence to build the factory before new regulations were passed, making it possible to obtain licences only through bidding. NAEEM HOLDING: The board of directors voted to acquire a majority stake in Naeem Saudi Arabia Company to be financed from the company's excess cash. The company has recently secured $100 million in cash through selling its stake in Al-Watany Bank of Egypt to the National Bank of Kuwait. Meanwhile the board decided to freeze its previous decision to increase Naeem Holding's capital from $240 million to $320 million. Compiled by Sherine Abdel-Razek
