Egyptian Exchange benchmark EGX30 index jumped 5.11 % this week, representing an increase of 240.98 points, ending Thursday transactions at 4,949.57 points compared to 4,708.59 points at the end of last week. Regarding current week trading, the index hit its highest point on Tuesday closing at 4,984.13 points, where its lowest point recorded on Wednesday at 4,914.94 points. It is worth noting that, Egyptian Exchange (EGX) was closed on Sunday 01/07/2012 in occasion of Banks' Holiday. EGX30 ended the first session of the week in green area and jumped by 4.97 % on Monday to close at 4,942.41. Market trade volume reached 251,370,817 shares amounted to EGP 974,955,558. The main index extended green performance for the seventh session and rose by 0.84 % on Tuesday to close at 4,984.13 after fluctuated performance. Market trade volume reached 154,820,466 shares amounted to EGP 995,318,461. EGX30 ended green performance which lasted for seven sessions and retreated by 1.39 % on Wednesday to close at 4,914.94. Market trade volume reached 132,278,694 shares amounted to EGP 405,906,954. Egyptian index EGX30 returned to green area and rose by 0.7 % on Thursday to close at 4,949.57. Market trade volume reached 113,567,079 shares amounted to EGP 449,951,156. Companies' Weekly Performance Highlights: Egyptian Financial Group-Hermes Holding Company - (HRHO.CA) stock closed last week at EGP 10.15, while closed on Thursday at EGP 11.49 (highest close), jumping by 13 % (EGP 1.34). The lowest close during that week came on Monday closing at EGP 10.7. On Tuesday, HSBC Brokerage announced that HSBC BANK MIDDLE EAST DUBAI has purchased 32.245.763 shares of Hermes at an average price of EGP 10.15 per share to increase its stake to more than 5 %. Also on Tuesday, Bloomberg reported that a potential offer that would have blocked a joint venture with Qatar's QInvest LLC stalled. Planet IB Ltd., a consortium led by Egyptian bankers, said it was seeking to acquire EFG-Hermes for at least 13.5 pounds a share subject to due diligence. Shareholders of the investment bank instead voted to approve a joint venture with QInvest and take advantage of a four-pound cash dividend per share. The agreement with QInvest is subject to regulatory approval. “The shares are up in part because investors believe Planet's bid will not go through," Teymour El-Derini, Cairo- based director of Middle East and North Africa sales trading at Naeem Brokerage. “That means the QInvest deal will go through, which means a four-pound dividend." Planet's Chief Executive Officer Ahmed El Houssieny said the company hasn't dropped the bid. “But at the same time, we haven't been invited to conduct due diligence yet," he said in a text message. Egypt's financial markets regulator said June 25 that acquisition offers can only be conditional on obtaining majority control. Any statements by investors or entities on plans to bid for listed companies without fulfilling regulatory requirements may be subject to legal action as they can affect share prices, the Cairo-based Egyptian Financial Regulatory Authority (EFSA) said. On Wednesday, Dubai Financial 2 has sold its stake in EFG-Hermes amounting to 32.2 million shares, representing 6.7 % of Hermes, to HSBC Dubai at EGP 325.9 million at an average price of EGP 10.15 per share, Alborsa newspaper reported. An official source at Hermes stated that ownership transfer from DF EFG2 to HSBC Banks is in the framework of loan settlement. Orascom Telecom Media And Technology Holding - (OTMT.CA) closed last week at EGP 1.48, while closed on Thursday at EGP 1.53, jumping by 3 % (0.05). Stock highest level recorded on Monday closing at EGP 1.54. On Monday, Eng. Naguib Sawiris, CEO of Orascom Telecom Media & Technology Holding SAE (OTMT), revealed that OTMT is seeking management contract of two telecom firms in Libya. He pointed out that the company is conducting talks to Libyana and Almadar Aljadid “The New Orbit" over management contracts and reactivating and development of networks. He asserted that, OTMT interest may exceed management in case the Libyan Government showed interest to privatize these operators. It is worth noting that, Libya's mobile phone subscriber number hits 12 million. On Tuesday, OTMT declared cash dividends of EGP 1.05 per share payable on 19/07/2012 for shareholders as of 16/07/2012 are entitled to cash dividends distribution. ELSewedy Electric (SWDY.CA) closed last week at EGP 23.64, while closed on Thursday at EGP 24.58 (highest close), jumping by 4 % (EGP 0.94). Stock lowest close during the week came on Monday closing at EGP 24.04. On Monday, El Sewedy plans to enter Niger by investing about $350 million in fiber optic and power transmission projects, the group's vice president told Reuters. Sewedy, which has operations in about 15 African countries, signed an accord with nationalized telecoms firm Sonitel to help the Niger company modernize its infrastructure before a planned privatization, Niger's government said in a statement. "We aim to invest more than $350 million in Niger, specifically on a proposed fibre optic project and also on power transmission," Sewedy's Hazem el-Haddad said on Niger state television. Niger's parliament voted in May to nationalize Sonitel. The company had been controlled by a Chinese-Libyan consortium but the government scrapped that deal in 2009, partly because of a lack of investment. On Tuesday, announced that it has signed a $ 26 million contract in Niger with national telecoms firm SONITEL. El Sewedy, the Arab world's biggest listed cable maker, added in a release sent to EGX that the project includes engineering works of fiber optic cables between three areas in Niger. Additionally, El Sewedy, the leading Wire & Cable and Integrated Energy Solution Provider in the Middle East and Africa announced in a release sent to Arab Finance that it has signed an EPC contract in Niamey, Niger on June 29th, 2012 with SONITEL, the Niger National Telecommunications Carrier, with a total contract value of USD 26 million. The project consists of the engineering, supply, installation and commissioning of fiber optic cable system to create a new backbone link between three areas in Niger (Konni to Zinder, Konnito Tahoua and Konnito the Nigerian borders.) Ahmed El Sewedy, CEO of Elsewedy Electric stated “We are extremely optimistic on the potential for Elsewedy Electric to assist Niger in developing its communication and power needs. The electrification rate in Niger stands at 4% with only 145MW of installed capacity. Niger is committed to have an installed capacity of about 350 megawatts of electricity over the coming years and we believe this presents a great opportunity for Elsewedy Electric in that we will be able to support the Niger government to achieve its target and realize this growth. We are currently negotiating additional contracts with the Niger authorities in the power and communication fields." The project completion date for the fiber optic cables system is expected to be within 12-15 months from the signing of the contract. Telecom Egypt - (ETEL.CA) closed last week at EGP 13.3, while closed on Thursday at EGP 13.06 (lowest close), dipping by 2 % (EGP 0.24). Stock highest level recorded on Monday closing at EGP 13.65. On Tuesday, Telecom Egypt (TE), announced that the company's Chief Executive Officer (CEO) and Managing Director, Tarek Aboualam, has decided to step down due to personal reasons, with effect from 11th August, 2012. Further information on the appointment of Tarek Aboualam's replacement will be announced to the market in due course. Commenting on the news, Mr. Akil Beshir, Chairman of the Board of Directors of Telecom Egypt, said: “Tarek has made a significant contribution to Telecom Egypt, during his tenure as Vice President for International & Wholesale and as the company's CEO and Managing Director. Tarek leaves a strong legacy with a strengthened and focused leadership team and a business well positioned for the future. On behalf of the Board of Directors I would like to thank him for his contribution and wish him the very best in his future endeavors". Separately, TE today announced the resignation of Mr. Mohamed Samy Saad Zaghloul, from its Board of Directors due to personal reasons, effective 26th June, 2012. Mr. Akil Beshir, Chairman of the Board of Directors of Telecom Egypt, added: “We would like to extend our sincerest thanks to Mr. Zaghloul for his support and efforts, and we wish him every success in the future." Sectors Performance: The most active sectors all through the week were Telecommunications, Financial Services, Real Estate, Construction & Material and Banks. Telecommunications sector achieved total traded value of EGP 507,600,272. Financial Services came second in terms of performance, as it achieved total traded value of EGP 492,686,866. Real Estate sector ranked third in terms of performance, as it achieved total traded value of EGP 359,536,483. Regarding, Construction & Material it achieved total traded value of EGP 262,671,277. Finally, Banks, as it achieved total traded value of EGP 168,551,986. 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 41,853,078. Local investors chose also to buy by value of EGP 26,905,068. Foreign investors were most active sellers this week by the value of EGP 68,758,145. Retail and Institutions' Activity: Retail activity led the market all through the week as it ranged between 49.57 – 77.21 %. While Institutions activity ranged during this week between 22.78 – 80.42 %.
