During the week which witnessed referendum on Egypt's new constitution, the Egyptian Exchange has managed to gain EGP 12.6 billion in week as the capital market has hit EGP 372.913 billion at the end of last week, compared to EGP 360.284 billion at the end of a week earlier. Benchmark EGX 30 index jumped by 5.42 % this week, representing an increase of 280.06 points, ending Thursday's transactions at 5443 points compared to 5162.94 points at the end of last week. Regarding current week trading, the index hit its highest point on Thursday closing at 5443 points, where its lowest point recorded on Monday at 5288.49 points. Companies' Performance In Week: Citadel Capital (CCAP.CA) closed last week at EGP 3.37, while closed on Thursday at EGP 3.79 (highest close), jumping by 12 % (EGP 0.42). Stock lowest close during the week came on Monday at EGP 3.47. On Monday, Citadel confirmed that portfolio company National Petroleum Company Egypt Ltd. (NPC Egypt) has divested the National Petroleum Company Shukheir Marine Ltd. The acquiring party is Sea Dragon Holding Ltd., a subsidiary of Sea Dragon Energy of Canada. Under the terms of the share purchase agreement, Sea Dragon Holding Ltd. will pay NPC Egypt US$ 250,000 in cash at closing while also assuming at closing responsibility for c. US$ 3 million of the National Petroleum Company Shukheir Marine Ltd.'s existing accounts payable. “This transaction is the first of a number that will see us exit non-core portfolio and platform companies as part of our transformation over the coming three years into an investment company. This transaction is important because it reduces our risk and increases our focus. Our goal is simple: To create value for shareholders by holding 11 strategic investments in five industries including energy, transportation and logistics, agriculture and consumer foods, mining and cement across our core footprint in Egypt, East Africa and North Africa," said Citadel Capital Chairman and Founder, Ahmed Heikal. The assets of the National Petroleum Company Shukheir Marine Ltd. include a 100% participating interest in the Shukeir Marin concession containing the offshore Gulf of Suez concessions at the Shukeir Bay and Gamma oil fields. Orascom Construction Industries - (OCIC.CA) closed last week at EGP 243.28, while closed on Thursday at EGP 251.1 (lowest close), an increase by EGP 7.82 (3 %). Stock highest close during the week came on Wednesday at EGP253.74. On Tuesday, EFG-Hermes cut OCI fair value to $ 45 per share (EGP275/share) from USD53/share on i) weaker construction outlook; and ii) as we lower our fertilizers expansion premium due to lack of clarity on OCI's JV with EBX in Brazil. Hermes added that, its new FV offers 9% upside to current levels; hence, we downgrade our rating to Neutral (from Buy). It stated that, it thinks OCI's fundamentals could remain capped in the near term by ongoing conflicts with Government, which could further delay the demerger process. Overall, Egypt represents c43% of our FV. On Wednesday, OCI announced that it is ready for cooperation with the government to implement the verdict of annulling contract of selling Nasr for Steam Boilers and give back all equipment. Omar Derwaza - Head of Investor Relations at Orascom Construction Industries - said OCI must first receive all the dues paid to implement the takeover deal on El Nasr Stream Boilers Co., before bringing the court's invalidity ruling into effect and returning the ownership to the state. Derwaza added that OCI is following up the updates in regard to receiving the dues within the coming period. Moreover, he further noted that El Nasr Stream Boilers does not in fact contribute to the OCI's top line. On Thursday, Audi Bank reduced OCI fair value to EGP 285.4/share with an upside potential of 12.3%. Moreover, Audi adjusted rating from Buy to Accumulate. Audi stated that, OCI's 9M-12 figures have fallen significantly short from our estimates mainly on lower than expected utilization rates and selling prices within the fertilizer business (mainly urea prices), in addition to weaker margins and lower awards within the construction business. With Q4-12 witnessing major gas supply cuts at both fertilizer plants in Egypt combined with maintenance turnarounds, as well as continued sluggish contract awards within the construction business, our full year figures have been trimmed accordingly. Eastern Tobacco - (EAST.CA) closed last week at EGP 96.51, while closed on Thursday at EGP 98.51, an increase by 2 % (EGP 2.36). Stock highest close during the week came on Tuesday at EGP 99, while the lowest close came on Sunday at EGP 96.15. On Tuesday, Eastern Tobacco announced that some workers stroke before company's administration and prevented other workers to enter their locations which caused production stoppage. It is worth noting that, Almasry Alyoum newspaper reported that about 3000 workers of Eastern Tobacco stroke in its two branches opposing company's deteriorating financial situation, calling for CEO resignation and higher wages. On Wednesday, Eastern Tobacco resumed production after reaching agreement with workers who had been on strike for two days, Fatma Ramadan of the Egyptian trade union federation told Bloomberg. The agreement was confirmed by a company official, who requested anonymity because he wasn't authorized to disclose the details publicly. The signing of the accord was attended by government representatives, she said. “Factories in all our branches are now back in operation as we have reached an agreement to fulfill workers' demands," the official said. Ramadan, who heads the union federation's strike committee, said she had yet to see the text of the agreement. On Thursday, the company denied reports about company's EGP 211 million losses due to workers' strike. The company stated, in a release sent to EGX, that this news is totally untrue adding that the losses are limited to days of the strike. Eastern added that, the losses are temporarily as December production plan will be implemented as planned. All outlets are working in full capacity in the past few days and sales process didn't affected due to the strategic stock, Eastern stated. El Sewedy Electric - (SWDY.CA) closed last week at EGP 21.98, while closed on Thursday at EGP 23.11 (highest), an increase by EGP 1.13 (5 %). Stock lowest close during the week came on Monday at EGP 21.98. On Tuesday, Sewedy announced that it signed a $ 169 million contract in Iraq with the Iraqi Ministry of Electricity to build and operate a new power plant in Aldiwanya, with four 125 MW General Electric gas turbines. The company added, in a release sent to Arab Finance, that the gas-fired 500 megawatt power projects is located 23 km west of Aldiwanya city and shall be completed within 18-months on an EPC (Engineering, Procurement and Construction) basis. The contract does not include the supply of the four GE gas turbines that have already been purchased by the Government of Iraq from General Electric in a mega deal that consisted of 56 gas turbines in 2008. The Arab Contractors will be responsible for all the civil, construction and site utilities for the project. Iraq, holder of the world's fifth-largest oil reserves, is struggling to raise power supplies, which are currently at about 7,500 megawatts, or half of its domestic demand of about 15,000 megawatts. This project is a further testament to El Sewedy Electric's commitment to meeting the needs of the Iraqi power sector, which is in need of substantial investment in power generation, transmission and distribution. Regarding Investors' Activity: Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively. Arab investors were the most active buyers this week earning the value of EGP 81,917,319. Foreign investors chose also to buy by value of EGP 30,508,696. Local investors were most active sellers this week by the value of EGP 112,426,016. Retail & Institutions' Activity: Retail activity led the market all through the week as it ranged between 39.68 – 74.07 %. While Institutions activity ranged during this week between 25.92 – 60.31 %.
