EGX30 edges 0.64 % higher this week amid fluctuated performance [Arab Finance (Egypt)]
(Arab Finance (Egypt) Via Acquire Media NewsEdge) Arab Finance : Egypt's stock exchange benchmark EGX 30 index edged higher by 0.64 % this week, representing a slight increase of 30.84 points, ending Thursday's transactions at 4,838.51 points compared to 4,807.67 points at the end of last week. Regarding current week trading, the index hit its highest point on Wednesday closing at 5,072.16 points, where its lowest point recorded on Monday at 4,824.56 points. Companies' weekly performance highlights: Commercial International Bank Egypt ( ) COMI closed last week at LE 32.54, while closed on Thursday at LE 32.54, unchanged. Stock highest close during the week came on Wednesday at LE 34.76, while the lowest close came on Monday at LE 32.63. On Monday, CIB announced that it signed the final contracts with Al Arafa For Investment And Consultancies to acquire 38 % stake in Concrete Ready Made Clothes, Arafa affiliate. On Tuesday, CIB announced that the deal will be finalized at a total size of EGP 152 million for the purchased stake. Post-acquisition, Arafa will remain the major shareholder of Concrete with 52% stake. After completion of the due diligence process and the study of the offer by both Concrete and Al Arafa Holding managements, the offer had been accepted and final agreements have been signed with CIB for the purchase of a 38% secondary stake at a deal value of EGP 152 million in cash which is in line with the initial offer Arafa received early in the year. On Thursday, Naeem Holding raised CIB TP to EGP39.8 after factoring 3Q12 results into our model and raising our net earnings assumptions for 2012 and 2013.
Moreover, it upgraded its call to BUY from HOLD as the share now offers c. 22% upside to TP.
CIB posted a 3Q12 net profit of EGP610m (up 16.7% QoQ and 94.2% YoY), 23.5% above our estimate on higher than expected. Also on Thursday, EFG-Hermes raised CIB fair value to EGP44.9 from EGP41.0, and reiterate our Buy rating, with our FV implying 29% upside potential. We have raised our 2012-15 earnings forecasts for CIB by c20% following significantly stronger-than-expected revenue growth in 9M2012. Telecom Egypt ( ) ETEL closed last week at LE 12.43, while closed on Thursday at LE 12.2, dipping by 2 % (LE 0.23). Stock highest close during the week came on Wednesday at LE 12.42, while the lowest close came on Monday at LE 12.11. On Monday, Naeem Holding cut Telecom Egypt target price to LE 16.6 per share after factoring in Q3 2012 results.
Naeem stated that, TE Q3 2012 results were solid adding that company's share remains attractive as a strong cash generator, holding a large cash pile, and it expects it to maintain a high dividend payout ratio. On Wednesday, Telecom Egypt has reached an initial agreement with mobile operators to end interconnection crisis as the National Telecommunication Regulatory Authority set next January for signing the new accord, Alborsa newspaper reported.
NTRA asserted the necessity to settle this dispute after reaching the preliminary articles of the interconnection fees in order to be finalized.
It is worth noting that, Telecom Egypt's dues with the mobile operators amount to LE 845 million. Regarding the investors' activity: -Local investors led the market activity all through the week, followed by Foreign and Arab investors respectively. - Local investors were the most active buyers this week earning the value of L.E 71,038,533. - Foreign investors were most active sellers this week by the value of L.E 45,027,500. - Arab investors chose also to sell by value of L.E 26,011,033. Retail and Institutions' activity: Retail activity led the market all through the week as it ranged between 34.16 – 76.68 %.
While Institutions activity ranged during this week between 23.31 – 65.83 %.
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