Prime Research raises Telecom Egypt price target
Reuters reported that Prime Research raised Telecom Egypt price target to LE 27.95 from LE 18.6, rating the stock a strong buy.
Prime said the decision of the National Telecommunication Regulatory Authority to provide international gateways to mobile operators was not a necessary threat to Telecom Egypt, as its partner Vodafone Egypt and Mobinil seemed to prefer sticking with the operator for cost saving purposes.
The brokerage said it expected Telecom Egypt to earn revenue of LE 10.4 billion in fiscal 2007. -Agencies
Melrose Resources to drill 14 wells in Egypt in 2008; invests initial $62 mln
Thomson Financial reported that Melrose Resources PLC said it has planned to drill 14 exploration wells in Egypt with an initial investment of $62 million, adding it is stepping up the pace of its exploration drilling with three deep rigs operating in the first half of 2008.
The company said data on the West Zahira No 1 well suggests that the well may contain reserves of about 60 billion cubic feet in the Qawasim formation.
The company added it will further invest $28 million during the year to acquire 2D and 3D seismic data over the two concessions – El Mansoura and SE El Mansoura – which will be used to identify and high grade additional prospects to be drilled over the following years.
US wheat climbs on momentum, Egypt, supply fears Dow Jones Newswire reported that bullish momentum and supply fears shoved US wheat futures sharply higher Thursday, with the nearby Minneapolis Grain Exchange contract reaching another new record high, traders said.
Contracts at all three US exchanges touched limit up, 30 cents higher, during the day session, although Chicago Board of Trade and Kansas City Board of Trade wheat pulled back on profit-taking before the close.
There was support for the rally from news that Egypt s General Authority for Supply Commodities had bought 490,000 metric tons of wheat, including 180,000 tons of US soft red winter wheat, said Larry Glenn, owner of Glenn Commodities. Weekly US wheat export sales are were solid, he said.
Export sales as of Jan. 10, 32 weeks into the marketing year, are 94 percent of the USDA s target for the year. Total commitments are up 68 percent from last year, while outstanding sales are up 78 percent from a year ago, according to the USDA.
That spurt of demand news that we actually got it done to Egypt kind of brought memories back to traders about what we used to do when demand showed up, Glenn said, referring to demand-inspired rallies last summer. It put some optimism back in the market.
CBOT March wheat finished 14 cents higher at $9.40 1/2 per bushel. KBCT March wheat rose 22 1/2 cents to $9.81 1/2, and MGE March wheat closed up 30 cents at $11.64 3/4.
US wheat surged on the opening on follow-through buying and demand news as MGE wheat led KCBT and CBOT contracts to the upside, traders said. CBOT March, May and July wheat temporarily traded limit up during the day session.
Lafarge shareholders approve capital increase
Reuters reported that Lafarge shareholders on Friday overwhelmingly approved a resolution allowing the French cement group to issue new shares to help finance its agreed ? 8.8 billion ($12.9 billion) takeover of Orascom Cement.
The resolution was approved by 99.2 percent of shareholders present or represented at the extraordinary general meeting.
Lafarge agreed to buy Orascom Cement for ?8.8 billion ($12.8 billion) in December, to boost its exposure to high-growth emerging markets, where the French cement group expects to make two thirds of its earnings.
As part of the deal s financing terms, Lafarge planned to issue 22.5 million new Lafarge shares to Nassef Sawiris, the majority shareholder of Orascom Cement s parent company, Orascom Construction Industries.
Sawiris has agreed to buy the shares, which represent 11.4 percent of Lafarge s capital, at ?125 each for a total estimated sum of ?2.8 billion.
He will become Lafarge s second-biggest shareholder after Groupe Bruxelles Lambert, the investment arm of business tycoons Albert Frere and Paul Desmarais, which owns 17 percent of the French company.
Lafarge shareholders also approved, by a large majority, the appointment of Sawiris, and GBL representatives Paul Desmarais Jr. and Thierry de Rudder, to Lafarge s board of directors.
Lafarge told shareholders its debt would rise to around ?15 billion after the deal from ?9 euros now. -Agencies
Trade grows 33.4 pct between SE China province and Africa
The Chinese news agency Xinhua reported that the two-way trade between southeast China s Fujian Province and Africa countries rose 33.4 percent year-on-year to reach $1.89 billion last year, local customs statistics show.
The coastal Chinese province exported $1.72 billion dollars worth of products to Africa in 2007, up 34.8 percent from a year earlier, chiefly machinery and electronic products and garments, statistics with the Fuzhou Customs show.
Fujian imported $170 million worth products from Africa last year, up 20.2 percent, mainly raw material of mineral products, such as marble and granite, statistics show.
South Africa, Egypt, Nigeria and Morocco were the four largest trading partner of Fujian, among 59 African countries and regions with which the Chinese province has established trade ties. The four markets contributed 60.8 percent to the total trade between Fujian and Africa last year.
Chinese and African economies are complementary to each other, which is the precondition for the trade growth, a spokesman with the customs said.
He also advised Chinese businesses to actively enlarge imports from African countries using preferential duty polices and other favorable government polices, in a bid to promote a sustainable development for the China-Africa trade.
