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ROUND UP: The month at a glance

MIBANK, EZZ STEEL REBARS DOWNGRADED

EFG-Hermes Securities Brokerage downgraded Misr International Bank (MIBank) from "buy" to "accumulate" on July 21, following the resignations of the bank’s chairman and managing director. Bahaa Helmy, chairman of Banque Misr – which is MIBank’s largest shareholder, with a 24.8 percent stake – replaced Essam El Ahmady as MIBank chairman. Kamal Sorour replaced Mohammed Moneeb as general manager after Moneeb resigned for health reasons. EFG-Hermes’ chief financial auditor cited concern that the bank might "suffer a temporary slowdown in its performance" during the management’s "transitional period."
The brokerage house also downgraded El-Ezz Steel Rebars from "buy" to "accumulate" after the company reported poor sales in June. Ezz, the country’s largest steel producer, sold some 80,000 tons of steel in June, down from a seasonal average of 110,000 tons per month. Overall steel consumption in Egypt was down 21 percent for the first half of 2000 versus the same period last year, an analyst said.

TOURISM UP FOR MAY

The number of tourists arriving in Egypt reached 410,000 in May, up 13.6 percent from May 1999, the Central Bank reported.

CIB’S NET PROFIT RISES

Commercial International Bank announced that its net profit for the first half of 2000 was £E 185.9, up 5.5 percent compared to the same period last year. Interest received from individual clients and other banks climbed 22.8 percent to £E 586.5 million thanks to increases in the bank’s lending rates. Growth was boosted by new services such as credit cards and utility bill settlement, and by referral fees from associates.

JUNE CANAL REVENUES UP

Suez Canal revenues were $162.8 million in June, up 13.6 percent compared to the same month last year, according to the Suez Canal Authority. The number of vessels using the waterway during the month totaled 1,169, up 8.6 percent from June 1999. The number of oil tankers jumped 61.3 percent, while the number of general cargo vessels remained steady. Annual revenues climbed to $1.9 billion for the fiscal year ending June 30, from $1.8 billion for the previous fiscal year. Analysts attributed the rise to increased trade between Europe and Asia.

ABC ANNOUNCES FIRST-HALF PROFIT

Al Ahram Beverages Company (ABC) announced on August 15 that its net profits for the first half of this year amounted to £E 45.2 million, up 12.4 percent compared to the same period last year. Total assets were up 31.6 percent to £E 502.4 million, compared with £E 381.7 million in the first half of 1999, while first-half sales rose 13.7 percent to £E 162 million. The week before, the company had announced its intention to buy back $10 million of its shares due to confidence in its outlook and low stock prices. A slump in ABC’s first-quarter sales had led to lowered expectations about the company’s stock performance.

IRANIAN BID FOR MIDB REJECTED

The Egyptian government rejected a bid by Iran’s government-owned Foreign Investment Company for a majority stake in Misr Iran Development Bank (MIDB) because the offer was lower than expected, Al Alam Al Yom reported on August 9. The company made an offer of $120 a share, although Egypt’s Central Auditing Authority values MIDB’s shares at $170-$270 each. The only bidder for MIDB not to withdraw its offer, the Iranian company already owns 20 percent of the bank. Egypt’s state-owned Alexandria Bank and Misr Insurance said in May that they were selling all their shares in MIDB - a 79.46 percent stake.

BUSINESSMEN REPORTED AWOL

Newspapers reported in mid-August that Ramy Lakah, chairman of the Lakah Group, had left the country, possibly to avoid creditors. EFG-Hermes assured investors that the banks it tracks on the Cairo stock exchange "have no exposure to Mr. Lakah and his companies." Lakah said he was on vacation and that he planned to take legal action on his return to Egypt. Earlier the same month, cosmetics trader Mostafa El Beleidy also left Egypt, reportedly to escape bad debts.

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