Market report

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Experts believe that the positive sentiment prevailing during the early trading sessions of this week will continue, and eventually help the market out of its recent nosedive. The CASE30 index closed the week ending on 24 July with a marginal 0.3 per cent increase, to reach 9,383 points following fluctuating performance.

The value traded through the shortened week due to a national holiday reached LE4.7 billion, compared to LE6.9 billion during the previous week. Non-Arab investors were net sellers, with a net equity outflow of LE74 million; Arab investors were net buyers with a net equity inflow of LE136 million.

The week witnessed a periodical review of CASE30 constituents, including M G Holding, Egyptians Abroad for Investment and Development, Al-Qahira Housing, United Housing and Development, Egyptians Housing Development and Reconstruction, Extracted Oils, Al-Nasr Clothes and Textiles (Kabo) and Alexandria Spinning and Weaving (SPINALEX).

Meanwhile, the infrastructure needed to set up the small- and medium-sized enterprises stock exchange Nilex is in full swing. The Capital Market Authority (CMA) licensed Sigma Capital Group and Misr Holding to be nominated advisors for companies wanting to be listed on Nilex. This brings the number of nominated advisors to 12.

ORASCOM TELECOM HOLDING (OTH) Chairman Naguib Sawiris was quoted in press reports as saying that he expects the company's new Canadian subsidiary Globalive to have a value in excess of more than $1 billion within two years. Sawiris said that the network will cost $4.25 billion, and that OTH will finance its stake through its own resources.

The new Canadian wireless operator has provisionally won spectrum in Canada, which will only be awarded to it if final regulatory approval is granted by Industry Canada. It is the high bidder on spectrum across every region of Canada, with the exception of Quebec, therein providing coverage to a population of 26 million.

The total cost of the bid stands at approximately 442 million Canadian dollars.

ARAFA HOLDING contracted a global marketing company to rebuild the visual image of Concrete, its Egypt-based retail arm, in an attempt to introduce the brand in Europe. Concrete currently has 42 stores in Egypt with four new stores opening locally this year.

According to HC Securities, the company's wholesale subsidiary Melka International is currently conducting due diligence to acquire Worth Valley Menswear, which is licensed to sell Pierre Cardin men's suits, by August 2008. On acquisition, Melka International will be the sole licensee for Pierre Cardin menswear in Ireland and the United Kingdom for six years.

The Pierre Cardin business is anticipated to generate an additional $18 million in annual sales for Arafa Holding, commented HC.

SIXTH OF OCTOBER DEVELOPMENT AND INVESTMENT COMPANY (SODIC), the construction and real estate developer, will invest some LE5 billion in the coming two years. The sum includes LE2 billion to execute 10 per cent of the East Town and West Town projects in collaboration with the Lebanese Solidere; another LE2 billion to be directed to its Allegria project; while the rest will help land purchases and other investments.

SODIC plans to increase its land bank to reach seven million square metres, up from the current 4.8 million square metres.

TMG HOLDING reported its consolidated financial results for a 15-month period starting on the date of its establishment on 3 April, 2007, as a net profit of LE1.22 billion. The company is currently working on a handful of projects, including a Four Seasons hotel in Luxor and the management of 5,000 units at a residential compound in Saudi Arabia covering an area of four million square metres.

Compiled by Sherine Abdel-Razek