While foreign markets are tumbling amid a liquidity crisis, the performance of the local bourse was stable thanks to a relatively positive macro-economic picture. The CASE30 index gained 0.6 per cent on the week ending 9 August, but still hasn't rebounded to its last month's all time high of 8,500 points. This comes amid an increase in the Egyptian pound-US dollar exchange rate from LE5.75 at the end of July to LE5.63 last week. The main support to the pound came from increased foreign direct investments (FDIs), together with a jump in foreign international reserves to $29.58 billion in July. Also the global depreciation of the dollar to its lowest ever level in more than a decade gave the pound more strength. With the inflation rate recording another decrease during July, analysts ruled out any possible changes in the interest rates to be introduced by the Central Bank of Egypt's monetary policy committee during its meeting today. AL-WATANY BANK OF EGYPT (AWB) made headlines through the week after its shareholders approved the offer submitted by the National Bank of Kuwait to buy 100 per cent of the bank for LE77 per share. This puts the overall value of the deal at LE5.7 billion which is five times the bank's book value. The offer came after the six-week due- diligence process ended with the consortium of the Commercial Bank of Kuwait, along with Noor Financial Investments Company, offering a bid to buy up to 70 per cent of AWB at four times its book value. The third competitor for the bank, Greece's EFG Eurobank offered LE58.3 for 100 per cent of the bank shares. COMMERCIAL INTERNATIONAL BANK (CIB) posted a 66.7 per cent increase in profits for the first half of 2007, to reach LE663.4 million. Interest income from investments in government securities declined by 21.3 per cent when compared to the same period of last year, resulting in the bank's reduction of such investments due to the low yields in the local treasuries market during the first half of 2007. Meanwhile, the net income figure includes a one-off gain of LE148.4 million from the sale of 9.3 million shares of CIB's stake in CI-Capital Holding to business tycoon Naguib Sawiris. The bank's financials show the fruits of its conservative credit policy with its non-performing loans coming at 3.3 per cent of gross loans during the six-month period. LECICO: The ceramics and tile manufacturer, registered a 37.1 per cent increase in its sales during the first half of 2007, compared to the first six months of 2006. The figure was supported by the inclusion of the company's newly acquired French subsidiary Sarreguemines in the overall consolidated figure. Without this acquisition, the revenues would only have increased by 20 per cent. However, the acquisition of the French company, which has a higher cost of production, has put a burden on the company participating in increasing its costs by 39.9 per cent. Net income came at LE50.9 million, up from LE36.7 million for the same period last year. According to an HC Securities report on the company's results, the growth in bottom line came due to a 57.7 per cent decline in taxes from LE11.1 million to LE4.7 million. "This is mainly due to the fact that half of Lecico's production is produced in the free zone area, exempted from taxes, and exported or produced in Lebanon," stated the report. "The government introduced a new tax law for companies operating in the free zone, in order for the government to clean up its books from outstanding claims." MISR CEMENT QENA (MCQ) released its first half results, posting a net income of LE147.8 million, up 22.6 per cent from LE120.6 million in 2006. MCQ managed to attain a market share of 3.6 per cent during the first half, higher than 3.3 per cent in the previous year. Local demand on cement increased by 12 per cent during the same period, to reach 16.9 million tonnes, while the company's production accounted for 9.2 per cent of Egypt's total exports of cement. These amounted to 3.9 million tonnes, up from 6.2 per cent the year before. Compiled by Sherine Abdel-Razek
