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Al-Ahram Weekly 27 Jan. - 2 Feb. 2000 Issue No. 466 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 27 Jan. - 2 Feb. 2000 Issue No. 466
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Profile Travel Living Sports People Time Out Chronicles Cartoons Letters A blue pill for trading
By Sherine Abdel-Razek
The market reacted positively to several new deals. Activity appeared energised, underlining an upward trend that by the end of the week appeared undiminished.
Trading volume came in at LE1.23 billion, a considerably high volume of transactions compared to the average monthly transactions of LE2 billion during the last year.
The cement sector hogged most of the limelight during the week, receiving a boost from the seemingly insatiable appetite of foreigner's for the sector. Three foreign cement companies spent LE2 billion in buying major stakes in three state owned cement manufacturers during the fourth quarter of 1999, spurring two local companies to bid for majority stakes in two more largely state-owned players. Less than a week after Suez Cement announced it was bidding for a 65 per cent stake in Torah Portland Cement, Orascom Construction Industries submitted a bid for more than 40 per cent of Ameriya Cement. The two offers boosted demand for shares in the two targeted companies. Ameriya Cement gained LE12 to close at LE64 a share, while Torah shares increased by LE2.
Orascom Construction Industries (OCI), parent company of the Egyptian Cement Company, a strong newcomer to the cement sector, further announced that it will be joining the Swiss cement group Holderbank Financier Glarus in a joint venture to produce cement. They are already negotiating with the Palestinian Authority for a 50 per cent state in a cement producing operation to be centred in Gaza. These developments were reflected in increased dealing in OCI shares, making it the second most traded stock of the week, accounting for 6.9 per cent of all market transactions.
International Electronics (IE) was another beneficiary of increased activity on the market. News of its desire to increase its holdings in the International Company for Electric Appliances (IEA) from 60 to 99 per cent -- if approved by IE's general assembly, the deal will involve a stock swap, with IE's chairman Ahmed Bahgat, founder of Bahgat Group giving up a 33 per cent stake in IEC to IE in return of a still undetermined stake in IE -- boosted IE shares to LE29, compared to LE25 two weeks ago. IE, with its market leading brand Goldi, is Egypt's leading television manufacturer.
MobiNil, though, maintained its position as stock market leader. Following a 46 per cent increase in profits for the fourth quarter of 1999 transactions in MobiNil's shares accounted for 63 per cent of overall market turnover. The shares maintained their upward trend to reach LE183.8.
Government approval for a media project free zone to include the already existing Media City, ignited investors interest in Media City shares which were among the most heavily traded stocks, ending the week LE2.7 higher.
Pfizer Egypt was the market's highest gainer, climbing 27 per cent to close at LE32.4, after Egyptian authorities approved the production of Viagra in Egypt a year and half after its debut in the international market.
