Egyptian Exchange benchmark EGX 30 edged higher by 0.668 % this week, representing an increase of 37.29 points, ending Thursday transactions at 5611.47 points compared to 5574.18 points at the end of last week. Regarding current week trading, the index hit its highest point on Thursday closing at 5611.47 points, where its lowest point recorded on Sunday at 5449.37 points. Main index EGX30 dipped by 2.24 % and close at 5449.37 points on Sunday. Market trade volume reached 138,124,743 shares amounted to EGP 1,179,366,391. EGX30 edged 0.38 % higher to close at 5470.31 points on Monday. Market trade volume reached 261,269,318 shares amounted to EGP 1,042,315,933. On Tuesday, EGX30 extended gains and advanced by 1.77 % to close at 5567.55 points. Market trade volume reached 102,596,779 shares amounted to EGP 742,657,594. EGX30 rose by 0.31 % amid fluctuated performance to close at 5584.86 points on Wednesday. Market trade volume reached 101,849,641 shares amounted to EGP 712,061,080. On Thursday, EGX30 rose by 0.48 % to extend fluctuated performance and close at 5611.47 points. Market trade volume reached 99,658,479 shares amounted to EGP 695,659,022. Companies' Weekly Performance: Orascom Construction Industries (OCI) - (OCIC.CA) closed last week at EGP 254.65, while closed on Thursday at EGP 256.47 (highest close), upping by EGP 2.09 (1 %). Stock lowest close during the week came on Sunday at EGP 248.64. On Tuesday, OCI announced that negotiation with Egyptian Tax Authority to end dispute related to unpaid tax on the 8.8 billion-euros ($11.5 billion) sale of its cement unit to Lafarge SA (LG) in 2007 still ongoing. Orascom added, in a release sent to EGX that, the management of the company submitted all documents in support of its position and pro tax consultant and legal adviser to the company Orascom said it would announce what discussions ended with at the time and confirmed in a statement to the Egyptian Exchange that it has not reached a final agreement yet and that the negotiations are still underway. Also on Tuesday, OCI has stopped production at three fertilizer lines after the state gas company cut off supplies from a gas field for emergency maintenance, Reuters reported. OCI, Egypt's biggest listed company, said on Tuesday production at two subsidiaries had been halted but should be restored to previous levels within seven days. "EFC and EBIC... are facing low gas pressures, gas cuts this week due to maintenance at an EGAS field," OCI investment relations officer Erika Wakid told Reuters in an email. Two lines, owned by OCI subsidiary Egyptian Fertilisers Co., produce about 1.3 million tons of urea per year and a third, owned by its Egypt Basic Industries Corporation (EBIC) subsidiary, about 700,000 tons of anhydrous ammonia. "We expect the situation to normalize in about a week's time and will update the market as the situation progresses," Wakid said. On Wednesday, OCI announced that gas pressure in Egyptian Fertilizers Co. and Egypt Basic Industries Corporation (EBIC) plants has increased, adding that production reached 60 %. The company added, in a release sent to EGX that, it expects gas pumping will reach its normal rates in the coming 7 days. GB Auto - (AUTO.CA) closed last week at EGP 31.5, while closed on Thursday at EGP 31.4 retreating by EGP 0.1. Stock highest close during the week came on Sunday at EGP 31.5, while the lowest close came on Tuesday at EGP 31.4. On Tuesday, Egyptian car sales network GB Auto blamed labour unrest at South Korean producer Hyundai for a 26.5 percent year-on-year drop in third quarter net profits, Reuters reported. Egypt's biggest listed automobile assembler said the failure of its main supplier to keep up with demand from consumers for its cars was the key factor in the fall in profits to 65.4 million Egyptian pounds ($10.7 million). Third-quarter revenue also dropped 14.1 percent year-on-year to 2.05 billion pounds, the firm said. "Our Egyptian passenger car business ... saw a dip in sales in the quarter just ended on the back of supply constraints following an extended period of labour unrest at Hyundai Motors, our key global partner," said Chief Executive Raouf Ghabbour. Hyundai saw its first fall in monthly sales in more than three years in August, due to walkouts in a wage dispute that stopped it from making 82,088 cars, worth some $1.5 billion. GB Auto said it had held extensive talks with Hyundai and believed it would increase shipments in the fourth quarter and in 2013, he said. "We see outstanding demand in both Egypt and Iraq for Hyundai passenger cars," Ghabbour said in an emailed statement. "We are selling everything we receive." Sales of motorcycles, three-wheelers, commercial vehicles and construction equipment had all increased, as had tire sales, the company said. On Thursday, Naeem Holding maintained, in a recent study, GB Auto target price at EGP36.0/share and BUY recommendation. Naeem stated that, GB Auto posted 3Q12 net profits of EGP65.4m, down a significant 26.5% YoY but up 12% QoQ, missing our estimate and market consensus of EGP110m and EGP94m, respectively. The decline was attributable to disappointing operational results, higher net interest expense and provisions. Also on Thursday, GB Auto expects sales to rise this quarter and next year after supply constraints eased and amid expansions in Libya and Algeria, Bloomberg reported. “This quarter reflects a shortage of supply in Egypt and Iraq for Hyundai cars," Chief Executive Officer Raouf Ghabbour said in a conference call last night. “We're hopefully going to receive improved allocations in November and December." Ghabbour said commercial vehicles sales could see a “slight improvement" this quarter although investments in infrastructure and tourism in Egypt remains tepid. He didn't provide details on its Libya and Algeria expansion plans. Egyptian Financial Group Hermes - (HRHO.CA) stock closed last week at EGP 11.54, while closed on Thursday at EGP 11.17, dipping by EGP 0.37 (3 %). Stock highest close during the week came on Sunday at EGP 11.3, while the lowest close came on Monday at EGP 11.16. On Friday, Hermes aims to expand into Turkey, Iraq and Libya and plans to grow its asset management arm by 50 percent after the completion of its joint venture with Qatar's QInvest, it said on Friday. It plans to expand with the help of $250 million that QInvest is injecting into the venture. "This deal brings a partner with similar ambitions and deep pockets, and will enable us to penetrate new markets," Siddiqui told Reuters in an interview in London. "It does give us access to some of the largest and most active sovereign wealth funds, and we can show them opportunities on almost a weekly basis," said Karim Awad, head of investment banking at EFG Hermes, who will run the joint venture with Siddiqui. The co-CEOs said the tie-up with QInvest - a much smaller investment bank only set up in 2007 - would also bring more expertise in Islamic finance. EFG is one of several investment banks attempting to become regional powers, rather than take on the likes of Goldman Sachs on a global basis. They include Brazil's BTG Pactual in Latin America and VTB Capital in Russia. On Monday, Egyptian Financial Regulatory Authority announced that it didn't approve Hermes-QInvest merger adding that its approval was only for company's EGM which is just a traditional procedure. Investors' Activity: Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively. Foreign investors were the most active buyers this week earning the value of EGP 118,458,583. Arab investors chose also to buy by value of EGP 19,794,570. Local investors were most active sellers this week by the value of EGP 138,253,152. Retail & Institutions' Activity: Retail activity led the market all through the week as it ranged between 25.72 – 49.64 %. While Institutions activity ranged during this week between 50.35 – 74.27 %.
