Investors capitalised on the unprecedented jump in CASE30 in previous weeks to liquidate some of their capital gains during the early transactions of the week ending 24 October. This weighed down on the CASE30 index but it was short-lived, and the index ended the week on another all time high -- its fourth in less than one month. With transactions worth LE7.1 billion, CASE30 closed at 9,100 points which is 2.1 per cent higher than the previous week. Meanwhile, Minister of Investment Mahmoud Mohieldin inaugurated last week the region's first bourse for small- and medium-sized enterprises (SMEs). The CASE's new sister company is called the Nile Stock Exchange (Nile X), and is open for companies with capital between LE500,000 and LE25 million to list at least 25 per cent of their shares. Nile X complies with the same disclosure and transparency rules as the CASE, and aims to provide small-sized companies with new sources of finance since SMEs corner only six per cent of bank credit financing. Mohieldin expected the new bourse to have five listed companies in the first year and at least one IPO. Enlisting is expected to begin within one week, and actual trading will begin in two months. The broader economic scene witnessed the release of some encouraging figures which helped sustain the upward trend of the market. A recent study prepared by the National Bank of Egypt showed that privatisation proceeds amounted to LE48.1 billion by the end of June, 2006. Repayment of foreign and domestic debts cornered LE16.6 billion of the sum, while LE2.8 billion were directed to the restructuring fund. The study also pointed out that 11 companies became profitable after a trend of loss, the profits of 61 companies increased, while the losses of 20 companies decreased after they were restructured. ORASCOM TELECOM HOLDING (OTH) is planning to reduce its holdings in the Hong Kong-based Hutchison Telecommunications International Limited (HTIL) from 19.3 per cent to 16.3 per cent. The step will take place through a private placement. CitiGroup is to arrange the deal which covers 143.3 million shares with a price ranging between HKD10.7 and HKD10.95. The sale is expected to raise around $203 million. In December 2005, OTH acquired 19.3 per cent of HTIL for a price of HKD11.0 per share. Through this 19.3 stake, OTH recorded a capital gain of $1.7 billion earlier this year when HTIL sold its Indian Subsidiary Hutch Isaar to Vodafone Group for $9.06 billion. TELECOM EGYPT (TE) dropped from the second round of an auction to buy 49 per cent of Slovenia's Telekom Slovenije, which owns a fixed and mobile telecoms subsidiary. TE came through the first round of the bid in mid-October, but was not included in the shortlist of seven prospective buyers in the second round. TE is Egypt's sole fixed line operator and until earlier this month monopolised the international calls gateway. It was chosen by the Saudi-based telecommunication magazine CommsMEA as the "Fixed Line Operator of Year 2007." EASTERN TOBACCO (EC) decided to distribute LE12 per share. EC also sent a memo to CASE clarifying newspaper reports that it will soon release a financial consultant report on its plan to secure the funds needed to complete its new plants in 6 October City. EC did not state the exact amount of money needed, but stressed that press reports of LE1.5 billion were inaccurate. The Arab Finance website estimated the cost of the project at LE2.307 billion, of which the company has already spent LE981 million. ETISALAT EGYPT's parent company Emirates Telecommunications Corp (Etisalat) bought 17 per cent more in Tanzania's Zanzibar Telecom (Zantel), raising its stake to 51 per cent. Zantel, the smallest mobile phone operator in Tanzania, is planning to double its customer base to a million users by the end of the year. Meanwhile, rumours spread last week that the company is considering selling a stake to a foreign shareholder, amid speculation that the UAE will amend a law to open its doors to foreign investors to own stakes in local companies. The company succeeded in adding 200,000 more UAE mobile subscribers in the third quarter of 2007, to reach 90.7 per cent of the market with 6.19 million subscribers. Compiled by Sherine Abdel-Razek
