Egypt index drops, OT extends decline
Egypt s benchmark index dropped 1.2 percent, with Orascom Telecom falling 5.7 percent to extend a decline after Algerian tax authorities told OT it owes $596.6 million in outstanding taxes and penalties.
Traders say the Algerian decision had caused a slight panic among retail investors in the market on Wednesday, but declines slow on Thursday as the market absorbs the news.
Everyone is watching and observing. It is very quiet today, Sara Shadid of CIBC Brokerage said.
Orascom Construction rose 0.7 percent. The firm said on Wednesday it was forming a joint venture with Brazil s FITCO International S.A. to distribute its fertilizer products.
Pioneers Holding dipped 1.4 percent, with traders cautious following a rally last week on news it would buy financial services firm Beltone, which said on Thursday it had received a license to offer brokerage services in Libya.
The EGX30 closed at 6,195 points. -Reuters
Beltone gets brokerage license in Libya
Egyptian investment bank Beltone Financial Holding has received a license to offer brokerage services in Libya, it said in a letter to the Egyptian stock exchange.
Beltone, which opened an office in Libya in November 2008, reached an agreement this month to merge with Egypt s Pioneers Holding in an all-share deal. -Reuters
OCI to form venture with Brazil s FITCO
Egypt s Orascom Construction Industries (OCI) said on Wednesday it was forming a joint venture with Brazil s FITCO International S.A. to distribute its fertilizer products.
OCI, Egypt s biggest fertilizers maker, had signed an agreement with FITCO in March to supply and import urea into Brazil.
We believe the new joint venture shall provide a platform for further growth in Brazil and potentially other South American markets, an OCI statement quoted FITCO Managing Director Marcelo Simionato as saying.
FITCO has a presence in several Latin American markets in addition to its strong position in Brazil, OCI said.
OCI has expanded into fertilizers in recent years to take advantage of Egypt s abundant natural gas and phosphate supplies.
The company has fertilizer operations in Egypt, Nigeria and Algeria and is targeting annual production capacity of 4.65 million tons of nitrogen-based fertilizers by 2010. -Reuters
SODIC posts Q3 net loss of LE 9.3 mln
Egypt s Sixth of October Development and Investment (SODIC) posted a net loss of LE 9.3 million ($1.7 million) in the third quarter, the firm said on Wednesday.
The real estate developer posted a net loss of LE 17.9 million in the third quarter of 2008.
Its third quarter revenue was LE 8.9 million, versus LE 8.5 million in the comparative quarter a year earlier. -Reuters
Symrise buys Egyptian drink-flavor maker Futura
German scents and aroma specialist Symrise agreed to take over Egyptian beverage-flavor maker Futura Labs for an undisclosed price, as part of an overall push to expand in emerging markets.
Privately-owned Futura, which had $15.1 million in sales from drink flavors, seasonings and fragrances last year, offers in-depth knowledge about the local taste preferences and consumers demands in North Africa and the Middle East, Symrise said in a statement on Wednesday.
Symrise s Chief Executive Heinz-Juergen Bertram told Reuters earlier that – having seen the worst in a slump in the fragrances market – the group was poised again for takeovers to broaden its product range and to grow in emerging markets. -Reuters
Most housing units exempt from property tax
Egypt s Minister of Finance said that 95.5 percent of the country s housing units will not be subject to real estate taxes given that their value is less than LE 500,000 each.
Around 2.5 percent of the country s housing units have a value between LE 500,000 and
LE 1 million each, while the remaining 2 percent have a value exceeding LE 1 million, reported Al-Ahram.
Arab Polivara revenues drop
Arab Polivara Spinning and Weaving saw revenues drop 33.6 percent in the third quarter of 2009 to reach LE 49.1 million, down from LE 74 million during the same period last year.
Net income also declined sharply as the company witnessed a net loss of LE 16.0 million in the third quarter, from a loss of LE 8.7 million a year earlier.
NBE, Banque Misr raise rates on certificates
The National Bank of Egypt (NBE) and Banque Misr have raised the interest rate on their Egyptian pound certificates (the platinum and special certificates) by 75 bps, to reach 9 percent from the current 8.25 percent, reported Al-Alam Al-Youm.
This move is surprising after the Monetary Policy Committee (MPC) decided to keep its overnight lending and deposit facility interest rates unchanged at 9.75 percent and 8.25 percent on November 5, Beltone Financial said in a report.
The discount rate was also kept unchanged.
Suez Canal Bank to restructure
Suez Canal Bank said it is planning to use the LE 1 billion proceeds of its rights issue to restructure the bank and improve its efficiency, according to Al-Mal.
The bank said that it will focus on cleaning its loan book portfolio, while continuing in booking the required provisions during the period starting year 2010 and ending 2012.
The bank also stated that it will also focus on increasing its branch network and on growing its retail portfolio.
