The market ended a long awaited rally that lasted eight days on Monday, but it resumed the upward swing Tuesday to close at 6,317 points. The overall sentiment is positive with new macroeconomic indicators showing good performance. The economy's growth rate is expected to hover around 6.5 per cent in 2010-2011 compared to 5.7 for 2009-2010, according to Minister of Economic Development Othman Mohamed Othman. ORASCOM TELECOM HOLDING (OTH): In another development in the dispute between the company's Algerian unit, Djezzy, and Algerian authorities, Djezzy has been blocked from importing new mobile phone equipment. Unnamed sources told Reuters that Djezzy has been unable to import mobile phone equipment since April when the Algerian Central Bank stopped the company from transferring money abroad. "Djezzy is facing a tough situation as it is no longer allowed to import materials, including SIM cards, spare parts and equipment," the source told Reuters. The source added that the SIM cards in stock are believed insufficient to meet demand. The saga, which started almost a year ago, was ignited by post-soccer match violence and escalated when the Algerian authorities said Djezzy should be paying almost $570 million in taxes. The Algerian government further blocked the sale of Djezzy to South Africa's telecommunications giant MTN, and is now in talks to buy the unit itself. THE EGYPTIAN COMPANY FOR MOBILE SERVICES (MOBINIL): The company witnessed a decline in its second quarter net profits to LE381 million, a 29 per cent decrease from the same period a year ago but up 6.7 per cent on the first quarter of 2010. The number of new subscribers to the network during the quarter came less than its main rival Vodafone Egypt, which ranks second in number of subscribers. Mobinil added 26,000 new subscriptions in the quarter, making a total of 26.148 million at the end of June. Vodafone had 1.2 million new customers to reach 25.79 million. Mobinil's earning release blamed the regulatory and competitive environment for the retreat in its performance. The National Telecommunication Regulatory Authority (NTRA) had imposed a 2 May deadline for all mobile phones to be registered in a central database or be disconnected, a move that cost Mobinil around two per cent of its subscribers base. Mobinil also said that the delay in the rollout of a new numbering system added to the problem. "We will continue our efforts to solve the issue with the regulator, who is limiting the availability of dials thus affecting the healthy competition," Hassan Kabbani, the company's managing director, said in the statement. However, NTRA denied the assertions, responding that Mobinil has three million available phone lines it has not yet used. In February, Mobinil said it expected 28 million subscribers by the end of 2010 and for revenue growth to slow to five per cent due to aggressive pricing promotions the three operators use to garner and protect market share. SIXTH OF OCTOBER FOR DEVELOPMENT AND INVESTMENT COMPANY (SODIC): The company is bidding for a parcel of land that could be worth up to LE2 billion in one of the largest land auctions in the country. The company did not reveal details about the land, but analysts interviewed by Reuters said the auction would be one of the largest since 2007 and could fetch as much as LE900 to LE1,200 per square metre. CEO Maher Maksoud told Reuters that the land in Sheikh Zayed suburb would be used to expand its flagship Allegria project. Allegria, a 2.4 million square metre, high-end residential development, is expected to have sales of about LE4 billion. SODIC plans to deliver about 300 homes in the upscale Allegria project by the end of 2010 and 600 homes in 2011. PALM HILLS DEVELOPMENT: The local high-end developer agreed with Dubai-based Jumeirah Group to manage one of its hotels on the Red Sea. The hotel is part of Palm Gamsha, a five million square metre resort that Palm Hills is building on 20 artificial islands north of Hurghada. Jumeirah manages 47 hotels worldwide, but the management agreement for the 250-room Jumeirah Gamsha Bay Resort is its first in Egypt. EGYPTIAN CONTRACTING (MOKHTAR IBRAHIM): The state-owned construction company sent a release to the local bourse stating that the company gained the project of designing an industrial works in Zagazig-Senbellawin road at a total value of LE63.82 million. The company has said in mid-July it was in talks with a Saudi real estate firm to establish a joint entity to implement infrastructure projects in Saudi Arabia. Moreover, the firm is in negotiation with one Qatari firm to establish a joint company in which Mokhtar Ibrahim will own a 49 per cent stake. Mokhtar Ibrahim announced recently that it is ready to bid for construction works in the new 120-kilometre road in Qatar that, if accepted, would be its first foothold in the Qatari market. The firm also is constructing water lines in Oman at a cost of LE700 million. Compiled by Sherine Abdel-Razek
