May 2012
Between a court-invalidated constituent assembly and presidential candidates disqualified by a new law, investors have been taking the market day by day. Both the EGX 30 (down 8.4 percent to 4735.2) and EGX 70 (down 10.5 percent to 434.3) indices delivered similar performances during the March 15 to April 15 period. The EGX 30 is still 13 percent lower than its 2012 high of 5,452 on March 7. Declines have outnumbered advances 11:1.
The short list of gainers included Alexandria Flour Mills (up 3.4 percent to LE 17.49) and Raya Holding (up 3.2 percent to LE 5.46). According to an analyst, Raya Holding posted stable 2011 earnings of LE 68 million, adjusted for one-time charges related to closing Raya Algeria. On the other hand, the list of losers goes on and on, with large caps feeling the brunt of the decline. Oriental Weavers was by far the worst performer, down 32 percent to LE 18.95. Furthermore, real estate stocks showed double-digit declines. For instance, Egyptian Resorts Co. saw its shares lose 30 percent of value to LE 1.02. Other developers were came among the biggest losers, including Mena Touristic & Real Estate Investment (down 21 percent to LE 1.56), Orascom Development Holding (down 21 percent to LE 5.11), Remco for Touristic Villages Construction (down 20.5 percent to LE 1.82) and Palm Hills Developments (down 18 percent to LE 1.66).
Meanwhile, Amer Group (down 14 percent to LE 0.66) began a TV media campaign to attract customers for its six new Porto-concept projects. Also, TMG Holding ended the period down 15 percent at LE 3.77 after shareholders rejected a cash dividend for 2011. El Sewedy Electric (down 17 percent to LE 20.49) and GB Auto (down 14 percent to LE 19.61) approved dividends of LE 1 a share, while Lecico Egypt (down 17 percent to LE 5.10) issued no dividend.
In the telecom sector, Orascom Telecom Holding (down 17 percent to LE 3.46) continued to suffer from news suggesting that its Algerian subsidiary's longtime dispute with the government may take three more years to resolve. Mobinil, meanwhile, is the subject of a tender offer by France Telecom. It finished the period at LE 179.97, but then began to move closer to the LE 202.5 tender offer price.
EFG-Hermes, Egypt's largest investment bank, has been in discussion with Qatar's leading investment bank, QInvest, about creating a leading regional investment bank. Shares of EFG-Hermes ended the period down 15.5 percent at LE 11.83 before rallying higher towards the end of April. EFG-Hermes Holding reported a consolidated net profit of LE 132.6 million in 2011, a decline of 81 percent compared to a year ago. However, excluding one-off capital gains from selling a stake in Bank Audi in 2010, normalized earnings would have been down only 14 percent.
Between a court-invalidated constituent assembly and presidential candidates disqualified by a new law, investors have been taking the market day by day. Both the EGX 30 (down 8.4 percent to 4735.2) and EGX 70 (down 10.5 percent to 434.3) indices delivered similar performances during the March 15 to April 15 period. The EGX 30 is still 13 percent lower than its 2012 high of 5,452 on March 7. Declines have outnumbered advances 11:1.
The short list of gainers included Alexandria Flour Mills (up 3.4 percent to LE 17.49) and Raya Holding (up 3.2 percent to LE 5.46). According to an analyst, Raya Holding posted stable 2011 earnings of LE 68 million, adjusted for one-time charges related to closing Raya Algeria. On the other hand, the list of losers goes on and on, with large caps feeling the brunt of the decline. Oriental Weavers was by far the worst performer, down 32 percent to LE 18.95. Furthermore, real estate stocks showed double-digit declines. For instance, Egyptian Resorts Co. saw its shares lose 30 percent of value to LE 1.02. Other developers were came among the biggest losers, including Mena Touristic & Real Estate Investment (down 21 percent to LE 1.56), Orascom Development Holding (down 21 percent to LE 5.11), Remco for Touristic Villages Construction (down 20.5 percent to LE 1.82) and Palm Hills Developments (down 18 percent to LE 1.66).
Meanwhile, Amer Group (down 14 percent to LE 0.66) began a TV media campaign to attract customers for its six new Porto-concept projects. Also, TMG Holding ended the period down 15 percent at LE 3.77 after shareholders rejected a cash dividend for 2011. El Sewedy Electric (down 17 percent to LE 20.49) and GB Auto (down 14 percent to LE 19.61) approved dividends of LE 1 a share, while Lecico Egypt (down 17 percent to LE 5.10) issued no dividend.
In the telecom sector, Orascom Telecom Holding (down 17 percent to LE 3.46) continued to suffer from news suggesting that its Algerian subsidiary's longtime dispute with the government may take three more years to resolve. Mobinil, meanwhile, is the subject of a tender offer by France Telecom. It finished the period at LE 179.97, but then began to move closer to the LE 202.5 tender offer price.
EFG-Hermes, Egypt's largest investment bank, has been in discussion with Qatar's leading investment bank, QInvest, about creating a leading regional investment bank. Shares of EFG-Hermes ended the period down 15.5 percent at LE 11.83 before rallying higher towards the end of April. EFG-Hermes Holding reported a consolidated net profit of LE 132.6 million in 2011, a decline of 81 percent compared to a year ago. However, excluding one-off capital gains from selling a stake in Bank Audi in 2010, normalized earnings would have been down only 14 percent.
© Business Monthly 2012
