Egypt index stable with heavy trade in OT and CIB
Egypt s benchmark index was little changed on Wednesday as heavy buying on Orascom Telecom (OT) balanced out selling on Commercial International Bank, traders said.
OT shares rose for the fourth day in a row after the company said it would seek to buy back up to 65 million of its own shares across three months.
There is foreign appetite on the stock (OT). We re seeing foreigners buying into the stock, and this is reflected on the global depositary receipt price as well, said Mohamed Kotb, Director of Asset Management at Naeem Financial Investment.
Shares in the largest Arab mobile phone operator by subscribers last traded 4.79 percent higher at LE 21 ($3.76) per share.
It s a very cheap stock, said Hashem Ghoneim of Pyramids Capital.
But the surge on OT failed to lift the CASE 30 index, which closed 0.21 percent down at 3,546.04 points, weighed down by heavy selling on Commercial International Bank (CIB).
The bank, Egypt s largest publicly traded lender, reported a weaker-than-expected 6.5 percent rise in 2008 net profit, and its shares fell 4.87 percent to last trade at LE 33.40.
Market heavyweight Orascom Construction Industries gained 2.12 percent to LE 103.50, while Telecom Egypt lost 1.82 percent to last trade at LE 15.11.
The Hermes index rose 0.11 percent to 340.93 points, while the broader CIBC index gained 2.86 percent to 237.7 points. -Reuters
CIB misses 2008 profit forecasts, shares dip
Commercial International Bank (CIB), Egypt s largest publicly traded lender, reported a weaker-than-expected 6.5 percent rise in 2008 net profit, hitting its shares.
Shares in CIB, Egypt s largest publicly-traded lender, on Wednesday shed 3.2 percent to LE 34 by 0910 GMT, after the company said earlier that annual net profit climbed to LE 1.37 billion ($247 million).
The bank said in a statement net interest income in 2008 rose to LE 1.79 billion from LE 1.2 billion a year earlier, while net income from fees and commissions rose to LE 747.7 million from LE 639.8 million.
Egyptian investment bank Beltone Financial said a weaker-than-expected fourth quarter sent full-year net income below its expectations of LE 1.65 billion.
In a note to clients, Beltone said net fees and commissions fell 42 percent in the fourth quarter ending December, while booked provisions surged 502 percent.
CIB said in a statement net profit after tax for the fourth quarter on a stand-alone basis stood at LE 333 million, up by 1.8 percent from the same period in 2007.
Investment bank EFG-Hermes had forecast the bank would make LE 369 million in the fourth quarter and Beltone Financial had forecast LE 380 million. CI Capital Research expected the bank would make LE 343 million.
The government and the central bank have said Egyptian lenders have little direct exposure to the global financial crisis, with few investments in troubled banks or derivative products. But a sharp decline in the stock market over the past year has weighed on profit growth. -Reuters
Egypt to liberalize fertilizer prices
The government is planning to liberalize the prices of fertilizers by the end of the year, Agriculture and Land Reclamation Minister Amin Abaza said according to Al-Alam Al-Youm financial daily.
Egypt Kuwait Holding profit up 28 pct
Egyptian Kuwait Holding revised its earnings upwards, saying its profit grew 28 percent in 2008, according to a statement on Egypt s stock exchange website.
The company had previously reported an 11 percent growth in 2008 earnings. The statement did not give further details.
The company is the main investment arm of Kuwait s Al Kharafi Group in Egypt. It invests in sectors such as fertilizers, oil and gas, insurance, building materials and tourism. -Reuters
Emaar Misr launches Mivida community
Emaar Misr for Development, the wholly owned subsidiary of UAE-based Emaar Properties, launched earlier this week the LE 5.75 billion Mivida community in New Cairo City.
Mivida is Emaar Misr s third integrated project in Egypt following Uptown Cairo and Marassi, both of which are being developed on schedule, the firm said in a statement to the press.
“Mivida is a pioneering developmental concept in Egypt as it introduces smaller, smarter and cost-competitive fully-finished, ready to furnish residences. .The mixed-use project will feature homes, commercial space and other amenities, Emaar said.
Mivida, meaning my life, will span 3.8 million square meters in New Cairo City, with 5,000 apartments, townhouses and villas
CEO Sameh Muhtadi said, The launch of Mivida underscores our . confidence in the real estate market in Egypt. We strongly believe that the fundamentals of the market are robust and continue to present an attractive investment opportunity for both the local and the international markets.
The construction of the Business Park and other infrastructure work is already underway, and master-planning has been completed. Sales of homes within the community will start soon.
Emaar Misr has a development portfolio of LE 31.67 billion.
