R-bloggers

2012-08-22

Egyptian Financial News: 2012-08-22

IMF's Lagarde in Egypt today to start loan talks

The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, is due to arrive in Cairo today to reopen discussions on a USD3.2 - USD4.8 billion fiscal package, after year-long negotiations between Egypt’s government and the international financial organization, Ahram Online reported. Lagarde is expected to open the visit by meeting with newly-elected Prime Minister Hisham Qandil and his Cabinet's economic group, including representatives from the ministries of finance, planning and international cooperation, and industry and external trade. She will then go on to meet President Mohamed Morsi for the first time since he assumed office. Egypt’s Finance Minister Momtaz El-Said confirmed last Wednesday that Egypt will be pushing for a loan worth USD4.8 billion, up from the previously planned USD3.2 billion, to help bolster the country’s economy. Few details about the programme have been made public, however, El-Said told Al-Ahram daily on Tuesday that one of its main pillars will be making subsidies more efficient by limiting waste and ensuring that financial support reaches the people in need. READ: a cut in fuel and food stuff subsidies is expected in the short to medium term. There has been overture to subsidies relaxation for the past few years. Further research is needed to assess the effect in the macro-economy. I will post any research I find on this topic in the future. 

SODIC to sell one million treasury shares

Bloomberg: OCDI
SODIC (OCDI EY, Price: EGP19.50, FV: EGP21.07, Hold, P/E 2012e: 10.8x) announced on Tuesday, August 21st, 2012, that its BOD has approved the sale of one million treasury sales, which represent 1.10% of the company's paid-in capital, after taking the necessary regulatory capital market approvals.

EZDK reports 1Q2012 results, falling short of expectations

Bloomberg: IRAX
EZDK (IRAX EY, Price: EGP559, FV: EGP755, Buy, P/E FY2012e: 8.7x) released its preliminary numbers for 1Q2012 with a net profit of EGP69 million, declining by 53% q-o-q and growing 23% y-o-y. The bottom-line reduces EZDK's chances of meeting our FY2012 estimated bottom line of EGP812 million as well as that of consensus (EGP1,060 million). Although the group is yet to disclose the main reasons behind the drop in q-o-q profitability, barring exceptional items, we presume that most of the weakness stems from a decline in rebar sales volumes domestically (owing to the weakness in local demand). During the quarter, the group (ezzsteel consolidated) had maintained the domestic price of steel rebars at EGP4,600/ton, almost similar to the average prices in 4Q2011. While the preliminary results do not look encouraging, with the numbers significantly lower than our expectations, we await further disclosures and clarification from the company regarding its operational performance.

Key Shareholder Transactions - Egypt (August 16th, 2012)
Company
Shareholder
Position
Action
No. of Shares
Delta For Printing & Packaging
Mahmoud Mohamed Rashad
Related Parties
Bought
1500
Delta For Printing & Packaging
Ahmed Mohamed Rashad
Board Member
Sold
1500
National Development Bank
Bani Yass Company
Related Parties
Sold
370,000
Export Development Bank of Egypt (EDBE)
Yousef Samir Abd el Sayed
Related Parties
Bought
5,000
Export Development Bank of Egypt (EDBE)
Mariam Samir Abd el Sayed
Related Parties
Bought
5,000
Mohandes Insurance
Wahid Mohamed Ahmed
Supervisor (Alex. Branch)
Bought
782
Citadel Capital
Moataz Farouk Mohamed
Related Parties
Sold
82,000





Source: Beltone Research 


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