MENA-2 MONDAY MORNING ROUND-UP

Egypt
Egypt minister says no additional privatisation plans in the pipeline Lecico to triple German market share; inventory marked for Libya redirected to other markets

Saudi Arabia
Al Akaria buys land plot in Riyadh for SAR100.7 million

Lebanon
Lebanon approves capital market law

Agenda
Egypt Mon 8 August >> GB Auto 2Q2011 results (expected) Wed August 10 >> Commercial International Bank (CIB) 2Q2011 results (10pm Cairo time) Wed 10 August >> Orascom Telecom (OT) 2Q2011 results Mon 15 August >> Telecom Egypt (TE) 2Q2011 results (EAS) Mon 15 August >> Lecico 2Q2011 results (expected) Tue 16 August >> Telecom Egypt (TE) AGM and EGM

Egypt News
Egypt minister says no additional privatisation plans in the pipeline Egypt's Finance Minister Hazem el-Beblawi has said that the government will not sell any more state firms, however, he also clarified that the state has no intentions of nationalising companies, the state news agency MENA reported. "The government will not continue in its privatisation of any new state-owned companies and will not return to nationalisation as a general policy," the agency quoted el-Beblawi as saying. "The country is adopting a market economy direction in this period. That does not mean that the market can do what it wants. Working in a market economy requires protecting social dimensions," he said. Additionally, the minister reiterated the governments plan to rely on local borrowing for financing Egypts fiscal deficit, and also promised to adopt spending restraint measures in all pubic offices. (Reuters) Lecico to triple German market share; inventory marked for Libya redirected to other markets Lecico (LCSW.CA) aims to increase its sanitary ware market share in Germany to 3% from 1% currently, Taher Gargour, the companys deputy CEO, was quoted as saying. Additionally, exports previously destined for Libya (c380,000 square metres per month) have been redirected to existing markets, notably Saudi Arabia, however, some idle inventory remains. On a separate note, Gargour added that management plans to meet this week with Khourshid plant workers to negotiate their remaining demands after the latter went on strike for nine days. The plant returned to full production at the end of last week. Gargour added that the company is ramping up its new tile capacity utilisation in the Borg el Arab plant. (Al Borsa) Lecico: EGP9.43, Rating: Neutral, FV: EGP11.90, MCap: USD127 million, LECI EY / LCSW.CA

Saudi Arabia News

Al Akaria buys land plot in Riyadh for SAR100.7 million

Saudi Real Estate Company (Al Akaria) [4020.SE] has purchased a land pot measuring 39,800 square metres (sqm) in Riyadh for cSAR100.74 million. This implies a price of cSAR2,531 per sqm. While the company has not disclosed its intentions for the plot, we view the event positively as Al Akaria is gradually starting to reinvest the significant liquidity on its balance sheet into its core real estate operations rather than investing it in non-core assets and financial securities, which are subject to market volatility and are capable of generating income statement losses. (Tadawul, Jan Pawel Hasman, Shaza El Kady) Al Akaria: SAR22.85, Rating: Neutral, FV: SAR27.4, MCap: USD731 million, SRECO / 4020.SE

Lebanon News
Lebanon approves capital market law Lebanons parliament approved on 4 August new capital market and insider trading laws. According to Lebanons Central Bank, the new capital market law seeks to set up an independent body to regulate and supervise capital markets. The National Council for Financial Markets inLebanon, which would enjoy a large degree of autonomy, would organise, regulate, and control the markets, its participants, and securities trading. (Zawya Dow Jones, The Daily Star)
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