summary global capital securities overview. egypt macro economy overview. egyptian stock market...

Summary

Global Capital Securities Overview .

Egypt Macro Economy Overview .

Egyptian Stock Market Overview .

www.globalcapitaleg.com

References .

Board of Directors :

1- Gamal El Assy, Chairman, ex. Banker (Treasurer) a well known Egyptian business man who invests in many sectors such as tourism real estate and financial services and worked in bank of America in Egypt and many Egyptian banks.2- Hassan Samir Farid, Managing Director, - Graduated from Cairo University 1995 Faculty of Economics and Political sciences obtains many certificate in the financial analysis (Fundamental, Technical) as well as iso certificates and brokerage operation. - Was Deputy Managing Director of Prime Securities (1998-2007)3- Mohamed Foaud , Managing Director for Branches - Graduated from Cairo University Worked in many Brokerage Companies and was the head of institution sales in Prime Securities (2003-2007)



Established 1997 license no 193.

The new shareholder structure acquired 100% of the company November 2007


Board of Directors

General Manager

Research

Department

Internal Audit Branche

s

Back Office Operation

Account Officers

BrokersGDR Trader Accounting

Client Services

Settlement &

Bookkeeping

OTC

Sales Traders

Legal Administratio

n

Compliance & Money Laundry

ITOn Line Trading Departm

ent



The new management did a full re-structure for the company to achieve its goals and plans that appeared on the revenues, profits ,and ranking right away as it reached no: 41in 2008 from no : 92 in 2007 .

Global Capital Securities now has it's own Website, Same Day trading license, on line trading license, a staff of 40 experts employees work in the main branch in Cairo and other 2 branches in upper Egypt ( Assiout 400 KM from Cairo) and (Souhag 550KM from Cairo) and other 2 branches to be launched in 2009.

Global Capital has a good cliental base retail, Hi-net worth, Banks, Insurance Companies and Fund Management in addition to a good network in the gulf region which are the target plan in marketing in 2010.

Global Capital is arranging all the needs to deal with foreign investors especially in UK and Europe.




06/0707/0808/09

Real GDP growth(%) 7.17.24.7

Population (mn)75.577.178.6

Unemployment rate(%) 8.98.49

CPI(%) 182410

Local Government Debt (Le bn)637666 745

Foriegn Government Debt ($ bn)29.933.8 30.5

Net Monetary Reserves in ($ bn)28.634.633.5

Egypt Macro Economy Overview.


FDI in Egypt - by Country

July/December)US$ mn(

July/December)US$ mn(

2007/20082008/2009*Change 2007/20082008/2009*Change

Flows of FDI in Egypt (Net) 7,769.504,027.60)3,741.90( Arab Countries 1,413.00678.40)734.60(

Inflows 9,232.305,775.60)3,456.70( Saudi Arabia 74.10296.70222.60

USA 3,700.601,941.00)1,759.60( UAE 170.30201.0030.70

EU Countries 2,466.702,446.70)20.00( Tunisia 1.300.30)1.00(

Germany 180.7072.80)107.90( Kuwait 1,048.5055.80)992.70(

France 311.40148.10)163.30( Lebanon 102.9020.00)82.90(

UK 1,837.201,215.30)621.90( Libya 1.301.400.10

Italy 6.6012.105.50 Jordan 3.3047.0043.70

Greece 64.4080.3015.90 Bahrain 5.306.301.00

Spain 0.001.501.50 Qatar 1.8034.2032.40

The Netherlands 11.4085.7074.30 Oman 0.301.601.30

Belgium 0.00777.70777.70 Yemen 0.309.008.70

Luxemburg 50.8023.60)27.20( The Sudan 0.300.600.30

Denmark 0.107.407.30 Others 3.304.501.20

Sweden 2.600.00)2.60( Other Countries 1,652.00709.50)942.50(

Austria 0.1010.2010.10 Switzerland 99.4098.80)0.60(

Poland 0.006.806.80 Japan 2.4025.6023.20

Others 1.405.203.80 Canada 1.806.905.10

China 12.0018.606.60

Australia 0.403.503.10

India 0.109.809.70

Turkey 10.3030.8020.50

*Provisional Bermuda 3.100.00)3.10(

+Capital repatriation (outflows) means that a direct Norway 0.203.403.20

investor recovers his share of the Capital of an Hong Kong 0.0037.1037.10

investment enterprise - in case of partial or full Others 1,522.30475.00)1,047.30(

disposal - and transfers part, or all, of it abroad. Capital Repatriation+-1,462.80-1,748.00)285.20(

Foreign direct investment in Egypt:

During July /December 2008-2009, net FDI in Egypt decreased by 48.2 percent to US$ 4.0 billion (against US $ 7.8 billion during the corresponding period of the previous FY)This was an out come of the decline in total investment inflows by 37.4 percent to US $ 5.8 billion (against US $ 9.2 billion),and also in capital repatriation by 19.5 percent to US $ 1.7 billion


Sectoral Distribution of Total FDI in Egypt

)US$ mn(

Sector

July/December

2007/2008 2008/2009

Value% Value%

Total Inflows9,232.30100.00 5,775.60100.00

Petroleum4,124.0044.67 4,142.0071.72

Manufacturing384.904.17 549.509.51

Finance 1,568.0016.98 223.503.87

Services 196.202.13 205.203.55

Construction 292.403.17 138.702.40

Real Estate 32.600.35 106.201.84

Tourism 76.100.82 98.801.71

Agriculture 2.800.03 68.601.19

Communications & IT 7.600.08 9.900.17

Undistributed2,547.7027.60 233.204.04



NB : Platinum certificate (Ahly Bank NBE) Now 8.5% for 3years And was 12% for 3years (dec 2008) CBE decreased the interest rates 6 times in this year .

Return on Various Investment Instruments

Various Investment Instruments %

Returns on LE August -2009

Three Months deposits 6.2

Six months deposits 6.9

One Year deposits7.5

Investment certificates (simple return)10.5

Investment certificates (increasing return)10

Returns on Treasury Bills ( end of month)

End of August -2009

91-Day Bills 9.63

182-Day Bills 9.73

Returns on stocks (earnings Yield )August -2009

Stocks7.26



Privatization : Companies privatized or liquidated

From inception of privatization program up to 31/8/2009:

Method of privatizationNumber of companiessales proceeds LE

Million

Majority through public offering386.064

Minority through public offering2311.003

Liquidation 34--

Asset sale 443.437

Anchor investor8532.208

ESA 33--

Leasing 25--

Total 28353.644• Expected Privatization.

According for the ministry of investment October 2008 a list from 30 to 40 companies will be target for privatization starting 2010.



Egyptian stock market Overview .



Market Info.

Market Scheme Official Trading Session starts 10.30 till 14.30 Sunday to Thursday .

Auctions Discovery session starts 9.45 AM till 10.15 AM everyday to determine the opening price of each stock according to the highest turn over executed on this price based on supply and demand entered on this session.

Tick size Tick size in Egypt is 1 piaster – 1 cent of dollar shares ( one Egyptian pound = 100 piasters) .

Interrupters The Stock is suspended for 30 min if it moves 10% up or down from the opening price and for the rest of the day if it moves 20% up or down.

Settlement:The Settlement in our market is T+2 for all Securities.

One only settlement company in Egypt called MCDR (Misr for clearing, settlement and central depository ).which rated A (stable ) according to THOMAS MURRAY .

Specialized Activities are Intra- day trading, short selling and Margin Trading and every Activity has it's own license.


20042005200620072008

Retail54%53%60%62%66%

Institutions46%47%40%38%34%

Local73%70%70%70%70%

Foreigners27%30%30%30%30%

Investors


Market IndicatorsIndicators 2005200620072008SEP.2009

Volume of listed securities4,198.907,757.1011,377.6021,938.9023,527.20

Volume of unlisted securities1,111.601,323.403,713.703,617.205,881.50

Total volume (million)5,310.409,080.5015,091.3025,556.1029,408.70

Value traded (listed securities)150,924.00271,107.80321,524475,881.20244,795.00

Value traded (unlisted securities)9,710.7015,631.9041,52253,743.0029,423.30

Total value traded (LE million)160,634.70286,739.70363,047529,624.10274,218.30

Average monthly value traded (listed securities)12,577.0022,592.3026,79439,65727,199.40

Average monthly value traded (unlisted securities)809.21,302.703,4604,4793,269.30

Total (LE million)13,386.2023,895.0030,25444,13530,468.70

Number of transactions (Listed securities)3,922,3016,590,1968,712,58412,750,94010,807,784

Number of transactions (unlisted securities)217,791231,244303,532705,378951,079

Total number of transactions4,210,0926,821,4409,016,11613,456,31811,758,863

Number of listed companies744595435373323

Number of traded companies441407337322272

Average monthly traded companies186183199213214

Market capitalization end of year (LE billion)456.3534768.3473.6564.7

EGX 30 (CASE 30)- POINTS632569731055045966762


MARKET CAPITALIZATION GROUPED BY SECTOR

As of 31, AUGUST 2009

SECTOR)bn (MARKET CAPLTALIZATION

BANKS59.05

BASIC RESOURCES 35.88

CHEMICALS 30.87

CONSTRUCTION AND MATERIAL 91.72

FINANCIAL SERVICES EXCLUDING BANKS 37.18

FOOD AND BEVERAGE 14.38

HEALTHCARE AND PHARMACCUTICALS 14.65

INDUSTRIAL GOODS AND SERVICES AND AUTOMOBILES 42.68

OIL AND GAS 11.68

PERSONAL AND HOUSEHOLD PRODUCTS 20.30

REAL ESTATE 53.09

RETAIL 2.36

MEDIA 1.35

TECHNOLOGY 2.74

TELECOMMUNICATIONS 85.61

TRAVEL &LEISURE 28.94

UTILITIES 1.50

TOTAL 534.07

Market Sectors



• EGX has undertaken a pioneering stepin the Middle East and North Africa Region, by being the first Exchange, to change its index calculations methodology and account for free float in its EGX 30 index previously named CASE 30 index, that was launched in 1/1/1998• As of 2 February 2009,the Egyptian Exchange started publishing EGX 30 Index, the previously named CASE 30 Index, Which has a base date of 1/1/1998 and a base value of 1000 points. CASE 30 Index was renamed EGX 30 Index on the 1st of March 2009, to reflect the change that occurred in the name of the Exchange, since Cairo and Alexandria Stock Exchange have been replaced by the Egyptian Exchange (EGX),as per the latest amendments in the Capital Market Law No. 95 pf the year 1992. • EGX 30 index value is calculated in local currency terms and denominated is US dollars since 1998..• EGX 30 Index includes the top 30 companies in terms of liquidity and activity.• EGX 30 Index is weighted by market capitalization adjusted by the free float. Adjusted Market Capitalization of the listed company is the number of its listed shares multiplied by the closing price of that company multiplied by the percent of freely floated shares.

Market Indices

1- EGX30:



Reuters code

Company Name

Reuters code

Company Name

ESRS.CAEl Ezz Steel Rebars AFDI.CAEl Ahli Investment And Development

SWDY.CAElswedy Cables EKHO.CAEgyptian Kuwaiti Holding

ELEC.CAEgyptian Electrical Cables PIOH.CAPioneers Holding

ETEL.CATelecom Egypt EGTS.CAEgyptian For Tourism Resorts

COMI.CACommercial International Bank ORTE.CAOrascom Telecom Holding (Ot)

MOIL.CAMaridive & Oil Services

SPIN.CAAlexandria Spinning &Weaving (Spinalex)

EMOB.CAEgyption Company For Mobile Services(Mobinil)

APSW.CAArab Polvara Spinning & Weaving Co

HRHO.CAEgyptian Financial Group –Herms Holding Company

IFAP.CAInternational Agricultural Products

TMGH.CATmc Holding UEGC.CAUpper Egypt Contracting

ELKA.CAEl Kahera Housing NCGC.CANile Cotton Ginning

EHDR.CAEgyptian Housing Development & Reconstruction

ACGC.CAArab Cotton Ginning

PHDC.CAPalm Hills Development Company KABO.CAEl Nasr Clothes & Textiles (Kabo)

OCDI.CASix Of October Development & Investment (Sodic)

SKPC.CASidi Kerir Petrochemicals

OCIC.CAOrascom Construction Industries (Oci) ZEOT.CAExtracted Oils

ABRD.CAEgyptians Abroad For Investment & Development

SVCE.CASouth Valley Cement

EGX30 Components :



2- EGX70:EGX 70 is a price index includes the top 70 companies in the terms of liquidity and activity

after excluding EGX30 index constituents. EGX 70 price index measures the change in the companies closing prices without being

weighed by the market capitalization. EGX70 index avoids concentrations on one industry and therefore has good representation of

the various industries sectors in the economy.

3- EGX100:

• In its continuous efforts to upgrade its services to market participants and help them to track a larger segment of traded companies in the Egyptian market .•EGX 100 is a price index which is composed of the top 100 companies in terms pf liquidity and activity including : 1 - EGX 30 index constituents 2 - EGX 70 index constituents• EGX 100 price index measures the change in the companies closing prices without being weighted by the market capitalization .



Global Depository Receipts (GDRs)

CompanyOrder & date

Depository bank

Sub Custodian

Conversion

Volume of

28/8/09

of offering bankRatioofferingPrice$

)CIB(Jul - 96Bank of New yorkCIB199999.9

Suez Cement Jul - 96Bank of New yorkCIB173104.55

Paints& Chemicals (Pachin)Oct-97

Bank of New yorkNBE362972.8

EFG -Herms Aug-98Bank of New yorkCIB0.5432410.65

El Ezz Steel RebarsJun - 99Bank of New york 0.3357332.5

)Lakah Group(Jul-99Bank of New yorkCIB0.33350000.44

Orascom Telecom (OT)Jul-00Bank of New yorkCIB0.21171333.1

orascom Construction (OCI)Aug-02

Bank of New yorkCIB0.55041.48

)Lecico(Nov-04Bank of New yorkCIB187964

Telecom Egypt Dec-05Bank of New yorkCIB0.2852216.4

Naeem Holding Feb-08Bank of New york 0.255625NA

Palm Hills DevelopmentMay-08

Bank of New yorkCIB0.25436NA



Bonds Market:Total value of issued bonds (listed) decreased by LE 5.7 billion during July/December 2008/2009, posting LE 78.9 billion at end of December 2008.The trading value of bonds declined by LE 4.5 billion during July /December 2008/2009,compared with the corresponding period a year earlier, to reach LE 6.2 billion at the end of December 2008 Transactions were only conducted on the floor, being mostly in treasury bonds dealers About 5.9 million bonds were traded, through 314 transactions at a value of LE 5.9 billion. In the mean time, 1.2million corporate bonds were traded at a value of LE 57 million, through five transactions. On 2009, especially Aug.2009 a lot of efforts are made by all the authorities to activate the bond market.



Mutual Funds:The CMA approved the establishment of two mutual funds during the period, thus bringing the number of mutual funds up to 43 (40 are open-ended and 3 are closed )at the end of December 2008.

31/12/2008 Local Mutual Funds Authorized and Operating as at

Fund NameFund ManagerInception Date

Par Value (LE)

Size (LE Mn)

Document Value(LE) 31/12/2007


Cash Distributionssince Date ofInception

Total Return since(%)Inception

Open-end Balance Funds

National Bank of Egypt IEl Ahly Fund ManagementSep-941020049.6929.153.60277.50

Banque Misr IConcord International Investments Feb-95100500115.7687.52103.8091.32

National Bank of Egypt IIEl Ahly Fund Management Oct-95100300105.7772.62125.2597.87

Export Development Bank I (Al-Khabeer)

Cairo Fund Management Oct-96100100124.6360.2438.00-1.76

S u e z C a n a l B a n k IHC Securities Dec-96500100471.40227.5720.00-50.49

National Bank of Egypt IIIHC Securities Aug-05100200140.2869.6922.75-7.56

El Watany Bank of EgyptHermes Fund Management Aug-06100135123.87104.757.0011.75

National Bank of Egypt vEl Ahly Fund Management May-071010011.237.650.00-23.50

Al-MasiHermes Fund Management Apr-08100100-74.290.00-25.71

Suez Canal Bank IIBeltone Fund Management Sep-0810100-8.800.00-12.00




Par Value (LE)

Size (LE Mn)





Open-end Equity Funds

Credit Agricole Egypt I *** Hermes Fund Management Oct-94100300401.22194.33220.25314.58

Bank of Alexandria I Hermes Fund Management Nov-94100200555.46210.79266.00376.79

Banque Misr II Concord International Investment Sep-9566.6730096.9155.1858.1569.99

Banque de Caire +++Hermes Fund Management Nov-9510200138.4564.380.00543.80

Credit Agricole Egypt II *** Hermes Fund Management Apr-97100300201.2892.1282.5074.62

Egyptian Gulf Bank Hermes Fund Management May-97100100480.65192.17197.00289.17

Banque Misr III *HC Securities Dec-97100138.97698.89317.2570.00287.25

Shield Fund ** Concord International Investment Feb-9850280143.9586.7746.50166.54

Misr Iran Development Bank I HC Securities Aug-98100100660.44289.85110.00299.85

Commercial International Bank II (Istethmar)

CI Asset Management Apr-06100600139.8765.310.00-34.69

Piraeus Bank-Egypt I Phoneix Kato Asset Management Apri-08100100-69.490.00-30.51

Housing & Development Bank (Al-Taameer)

Prime Investments Fund Management

Jun-08100100-87.650.00-12.35

ABC BankRasmala Fund ManagementAug-08100250-68.710.00-31.29




Par Value (LE)

Size (LE Mn)





Open-end Fixed Income Funds

Al Rabeh Fund ++Prime Investment Fund Management

Feb-9910050102.36101.7783.3585.12

Credit Agricole Egypt III *** Egyptian Fund Management Group Jun-9910001501087.481077.35869.9894.73

Commercial International Bank I (Osoul)

CI Asset Management Apr-051001000126.17136.770.0036.77

Misr Iran Development Bank II HC Securities Jul-0510005001039.061043.81246.5129.03

Bank of Alexandria II Egyptian Fund Management Group May-061020011.4712.430.0023.21

National Bank of Egypt IV El Ahly Fund Management Jun-06100145113.87123.210.0023.21

National Societe Generale Bank (Themar)

Egyptian Fund Management Group Oct-06100100110.90119.780.0019.78

Export Development Bank II ABN-Amro-Delta Fund Management

Nov-06100100109.89118.940.0018.94




Par Value (LE)

Size (LE Mn)





Open-end Islamic Funds

F a i s a l I s l a m i c B a n k Hermes Fund Management Dec-0410050179.38100.0652.0052.06

Egyptian Saudi Finance Bank Hermes Fund Management May-0610050133.1370.5139.329.83

Faisal Islamic Bank - CIB (Al Amman)

CI Asset Management Oct-06100100126.4255.810.00-44.19

Banque Misr IV HC Securities Oct-06100200143.0767.7614.00-18.24

Sanabel Fund Prime Investments Fund Management

Feb-07100100124.9367.3310.00-22.67

Egyptian Saudi Finance -National Bank of Egypt (Bashaer)

El-Ahly Fund Management Feb-08100200-67.330.00-32.67




Par Value (LE)

Size (LE Mn)





Closed-end Funds

Orient Trust Egyptian Investment & Finance Co .

Feb-971000501328.811339.62300.0063.96

Misr Direct Investment Fund Al Ahly Development & Investment Jul-991000351102.701047.400.004.74

Arab Land Direct Prime Investments Fund Management

Feb-00100070903.62698.61113.75-18.76

Asset Allocator Funds

Arab Misr Insurance Group Prime Investments Fund Management

Aug-955001001167.05590.27237.0065.45

Societe Arab Int'l Banque I + Prime Investments Fund Management

Jun-96100100636.83339.0688.00327.06

Societe Arab Int'l Banque II Prime Investments Fund Management

Oct-97100200396.76245.3090.00235.30



References.

1 -Central Bank OF Egypt www.cbe.org.eg

2 -The Egyptian Stock Exchange www.egyptse.com

3 -Egyptian Financial Supervisory Authority ( EFSA) www.cma.gov.eg

4 -Management Association www.eima.org.eg

5 -Ministry Of Investment www.investment.gov.eg

Thank You.For more info :


Presented byHassan Samir FaridManaging Director

Global Capital Securities

summary global capital securities overview. egypt macro economy overview. egyptian stock market...

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