The Egyptian parliament approved the long-awaited mortgage draft law on June 16, thereby removing the final obstacle before President Hosni Mubarak signed the bill into law. Suez Cement announced on June 20 that it is currently negotiating the sale of its 10.1 million share capital increase with the highest bidder, expected to be concluded by next week. Helwan Cement released 1Q FY2001 results ending March, in which net income slipped 23 percent to LE49.9 million compared to LE64.7 million
According to Reuters, industry sources have confirmed that Standard Chartered and at least two other banks have submitted bids to acquire a majority stake in Egyptian American Bank. The market tanked this week as both mobile operators fell in correlation with global telecoms, thereby leading the local market south. MobiNiL declined 4.05 percent and Orascom Telecom slipped 6.50 percent to LE25.32.
The cement sector remained in the limelight as Suez Cement announced mid week that the company is currently negotiating the sale of its 10.1 million share capital increase with the highest bidder, expected to be concluded by next week. It is worth noting that SUCE has received two bids, one from Cement Francais and another from Irish cement producer CRH. The share lost 5.86 percent on profit taking following distribution of a cash dividend of LE2/share. Moreover, Helwan Cement lost 1.89 percent after it posted a 23 percent decline in 1Q FY2001 earnings, ending the week at LE33.29.
In the banking sector, Egyptian American Bank was the star, surging 9.77 percent to LE56.76 after news agencies reported that Asian specialist bank Standard Chartered and at least two other banks have submitted bids to acquire a majority stake in the bank. Volume leader Lakah Group suffered a 7.59 percent drop after it defaulted on its Eurobond coupon due June 8. The company traded over 5.2 million shares to close the week at LE0.73, after touching a new low of LE0.67.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)