Amid the cancellation of President Mohamed Morsi's controversial constitutional decree which had divided the nation triggering clashes between opponents and supporters, the Egyptian Exchange has managed to gain EGP 18.9 billion in week as the capital market has hit EGP 360.284 billion at the end of last week, compared to EGP 341.303 billion at the end of a week earlier. The benchmark EGX 30 index jumped by 6.7 % this week, representing an increase of 324.43 points, ending Thursday's transactions at 5,162.94 points compared to 4,838.51 points at the end of last week. Regarding current week trading, the index hit its highest point on Thursday closing at 5,162.94 points, where its lowest point recorded on Monday at 4,976.22 points. Companies' Weekly Performance: Telecom Egypt (ETEL.CA) closed last week at EGP 12.2, while closed on Thursday at EGP 12.82, jumping by 5 % (EGP 0.62). Stock highest close during the week came on Wednesday at EGP 12.82, while the lowest close came on Tuesday at EGP 12.32. On Tuesday, Telecom Egypt announced that a blaze was set in Maadi II call center today but no casualties, adding that firemen controlled it. The company added that, it is currently counting losses. On Wednesday, Telecom Egypt announced that it has signed a contract with Palm Hills in order to provide internet services for its projects. National Societe Generale Bank (NSGB) - (NSGB.CA) closed last week at EGP 35.34, while closed on Thursday at EGP 35.44 (lowest close), an increase by EGP 0.1. Stock highest close during the week came on Wednesday at EGP39.35. On Tuesday, EFG-Hermes reiterated NSGB Neutral rating, while cutting FV to EGP40.8 (from EGP 50), implying a 2013 P/BV of 2.0x and less than 15% upside. Hermes stated that, NSGB's share price has fallen 22 % since its 17 October peak, but it is up 99% year to date. It added that, it sees as main drivers of the de-rating: i) various media reports on the possible valuation of NSGB by QNB (from a low 2.1x P/BV or EGP35.8 p/s to 2.7x P/BV or EGP46.4 p/s); ii) the deadline extension for QNB to make an offer for NSGB to 20 Feb (from 27 Nov); and iii) the increase in political tensions in Egypt. In a related context, it cut its 2013-15 forecasts by c6% on higher provisioning and lower our going-concern valuation by 4% to EGP37.1. Moreover, it reduced the acquisition premium added to its valuation to 10% (from 30%). On Thursday, QNB Group, the largest financial institution in the State of Qatar and the MENA region, announced that it has entered into a definitive agreement with Société Générale for the acquisition of its entire stake of 77.17% in Egyptian unit NSGB. Subject to receipt of required regulatory approvals, QNB Group will launch a mandatory tender offer (MTO) for 100% of the share capital of NSGB, to which Société Générale has committed to tender its shares. The offer for 100% of the share capital of NSGB amounts to US$2,558 million. The price to be offered to all shareholders will be converted into EGP at the time of the filing of the MTO with the Egyptian Financial Services Authority (EFSA). The transaction is expected to be immediately earnings accretive in 2013 and will further diversify the financial profile of QNB Group. NSGB will be representing 8% and 10% respectively of combined total loans and deposits and 10% of the combined net income. Regarding Investors' Activity: Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively. Local investors were the most active buyers this week earning the value of EGP 45,350,258. Arab investors chose also to buy by value of EGP 20,964,632. Foreign investors were most active sellers this week by the value of EGP 66,314,891. Retail & Institutions' Activity: Retail activity led the market all through the week as it ranged between 34.41 – 60.38 %. While Institutions activity ranged during this week between 39.61 – 65.85 %.
