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Summary
Global Capital Securities Overview .
Egypt Macro Economy Overview .
Egyptian Stock Market Overview .
www.globalcapitaleg.com
References .
Global Capital Securities Overview .
www.globalcapitaleg.com
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)
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Global Capital Securities Overview .
Established 1997 license no 193.
The new shareholder structure acquired 100% of the company November 2007
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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
Global Capital Securities Overview .
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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.
Global Capital Securities Overview .
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Egypt Macro Economy Overview .
Egypt Macro Economy Overview .
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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.
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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
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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
Egypt Macro Economy Overview .
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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
Egypt Macro Economy Overview .
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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.
Egypt Macro Economy Overview .
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Egyptian stock market Overview .
Egyptian stock market Overview .
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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.
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20042005200620072008
Retail54%53%60%62%66%
Institutions46%47%40%38%34%
Local73%70%70%70%70%
Foreigners27%30%30%30%30%
Investors
Egyptian stock market Overview .
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
Egyptian stock market Overview .
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
Egyptian stock market Overview .
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• 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:
Egyptian stock market Overview .
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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 :
Egyptian stock market Overview .
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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 .
Egyptian stock market Overview .
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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
Egyptian stock market Overview .
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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.
Egyptian stock market Overview .
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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
Document Value(LE) 31/12/2008
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
Egyptian stock market Overview .
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Fund NameFund ManagerInception Date
Par Value (LE)
Size (LE Mn)
Document Value(LE) 31/12/2007
Document Value(LE) 31/12/2008
Cash Distributionssince Date ofInception
Total Return since(%)Inception
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
Egyptian stock market Overview .
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Fund NameFund ManagerInception Date
Par Value (LE)
Size (LE Mn)
Document Value(LE) 31/12/2007
Document Value(LE) 31/12/2008
Cash Distributionssince Date ofInception
Total Return since(%)Inception
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
Egyptian stock market Overview .
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Fund NameFund ManagerInception Date
Par Value (LE)
Size (LE Mn)
Document Value(LE) 31/12/2007
Document Value(LE) 31/12/2008
Cash Distributionssince Date ofInception
Total Return since(%)Inception
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
Egyptian stock market Overview .
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Fund NameFund ManagerInception Date
Par Value (LE)
Size (LE Mn)
Document Value(LE) 31/12/2007
Document Value(LE) 31/12/2008
Cash Distributionssince Date ofInception
Total Return since(%)Inception
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
Egyptian stock market Overview .
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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 :
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Presented byHassan Samir FaridManaging Director
Global Capital Securities