> Finance & Stock Exchange > Markets > ENGN
Egyptian stocks slide after OCI fails to bottom out
Reuters: [2008-05-14 15:16:00]
CAIRO, May 14 (Reuters) - The two main Egyptian stock indexes fell again on Wednesday when investors saw that shares in Orascom Construction Industries (OCI) <OCIC.CA> <OCICq.L> had not yet bottomed out, brokers said.
OCI and sister company Orascom Telecom <ORTE.CA> <ORTEq.L> have been among the major factors behind a correction which has now run seven straight sessions, driven by investor worries about inflation and government policies, they added.
The benchmark CASE 30 index <.CASE30> slipped 0.7 percent to 10,665.82 points and the widely watched Hermes <.HRMS> ended the day 1 percent down at 92,065.42. The two indexes have fallen around 11 percent since peaking in late April or early May.
Foreigners continue to be net sellers, by a margin of 120 million Egyptian pounds ($22 million), the stock exchange said.
OCI, a big fertiliser producer hit by a government decision to raise gas price for energy-intensive industries, lost 7.1 percent to last trade at 353 pounds. In April, it stood at 485.
"When people saw that the selling in OCI hadn't finished, it went from 390 to as low as 350. It took everyone off guard," said Yasser Hassanein of Dynamic Securities.
But Orascom Telecom (OT) drifted slowly upward and the market received a last-minute boost when the company confirmed that it will go ahead with a buyback of up to 106 million shares -- 10.3 percent of the total -- even though the current share price is more than 2 percent below the 83 pound offer price.
"That calmed a lot of nerves. It came on screen a minute before the close. There was no time to respond," Hassanein said.
The buyback, with a potential value of over 8 billion pounds, could bring fresh cash to the market, and the main indexes have slipped toward important support levels, suggesting that the decline may not last, brokers said.
OT shares last traded 0.6 percent higher at 79.76 pounds.
Commercial International Bank (CIB) <COMI.CA> <COMIq.L>, which announced that lengthy merger talks with Arab African International Bank had ended without agreement, closed 3.0 percent down at 79.50 pounds.
"There is still plenty of weakness around. There was no conviction among investors," said Bassim Arida, head of the foreign desk at CIBC brokerage.
The broader CIBC index <.CIBC> rose 0.3 percent to 534.38 points. ($1 = 5.35 Egyptian pounds) (Writing by Jonathan Wright) ((jonathan.wright@thomsonreuters.com; +20 2 2578 3290/1; Reuters Messaging: jonathan.wright.reuters.com@reuters.net))
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FEATURE-Medieval church re-emerges as Spain ships in water
Reuters: [2008-05-14 14:04:00]
By Martin Roberts
BARCELONA, May 14 (Reuters) - Perhaps the most striking image of Spain's drought, so severe it has forced Barcelona to ship in water, has been that of the underwater church which emerged from a drying dam.
For most of the past four decades, all that has been visible of the village of Sant Roma has been the belltower of its stone church, peeping above the water beside forested hills from a valley flooded in the 1960s to provide water for the Catalonia region.
This year, receding waters have exposed the 11th-century church completely, attracting crowds of tourists who stand gazing around it on the dusty bed of the reservoir.
Neighbouring Vilanova de Sau is enjoying a tourist boom, its mayor Joan Riera says.
"Every time it's on television, a whole lot of people come," Riera told Reuters by telephone, adding that this was all very well but it had made it impossible to find a table in the town's restaurants: "They all want to eat at the same time."
Drying dams are causing problems still more serious in Barcelona, the region's glamorous capital, which has had to charter ships to bring in drinking water.
After proverbial April showers, reservoirs are now about 25 percent full but will have to provide for a hot, dry summer, so emergency measures may only have been delayed.
For now, the short-term outlook is tolerable. But officials said that without shipped water and a campaign to cut water waste, the city could face its first cut in domestic water supplies since 1953.
"If it doesn't rain and if we hadn't implemented solutions, then Barcelona would be facing supply cuts. But the signs are that work in progress and management measures will work perfectly," said city council environment manager Jordi Campillo.
MORE FREQUENT DROUGHTS?
The tanker vessel Sichem Defender docked at Barcelona on May 13 carrying 19,000 tonnes of water from the southern Catalan town of Tarragona: overall, ships will provide 6 percent of the drinking water for 5.5 million people over the summer, as authorities bring in 10 boatloads from Tarragona, Marseille, and a desalination plant in southern Spain.
The total cost is estimated at 40 million euros ($61.96 million), including 32.5 million for port infrastructure to handle the water.
Ships are a stopgap solution, and while they will quench citizens' thirst for a few months, authorities fear increasingly frequent drought around the Mediterranean might require more permanent measures.
A hosepipe ban has been in force for months in Spain's second city, fountains have been dry and arguments have broken out with other regions over how to share out increasingly scarce water.
The regions of Valencia and Murcia have threatened to complain to the Constitutional Court about a controversial 180 million euro pipeline from the river Ebro delta, due to supply Barcelona from October.
"It's an emergency measure to give drinking water to five million people who might not have it in a few months," said Spain's Deputy Prime Minister Maria Fernandez de la Vega.
A longer-term answer will be a desalination plant, billed as the biggest in the European Union, under construction on the outskirts of Barcelona and due on stream in May 2009.
The plant is just one of several planned or being built in Spain, which will be needed to offset the impact of global warming in coming years in the Mediterranean region, water experts say.
"It was already very important when it was planned but now, with the urgent drought, it has become indispensable," said Tomas Azurra, chief engineer at the plant at the estuary of the Llobregat river.
The plant, which is 75-percent funded by the EU, is being built by a consortium including water firm Agbar and Dragados, part of construction firm FCC. It will supply 20 percent of Barcelona's water.
MORE EFFICIENT
Stephanie Blenckner of the Stockholm International Water Institute said desalination plants were costly but affordable to European countries, and preferable to permanently diverting water from rivers such as the Ebro.
She added that countries like Spain needed to capture more rainwater in future, as climate change would exacerbate alternating periods of drought and heavy rain.
"The rain is the biggest resource we have and we can dispose of it all year round if we have sensible storage opportunities," Blenckner said.
She also predicted increasing tensions due to demand for water from the tourism industry, which accounts for about 11 percent of Spain's economy.
"Water will be essential for tourism and that will sharpen up social consequences, as it already has done in places like Morocco and Egypt," Blenckner said.
The World Bank said in April declining water quality has already knocked around 1 percent off gross domestic product in Morocco, Algeria and Egypt and almost 3 percent in Iran. (Additional reporting by Jason Webb; Editing by Sara Ledwith) ((martin.roberts@reuters.com; +34 91 585 2130; Reuters Messaging: martin.roberts1.reuters.com@reuters.net)) ($1=.6456 Euro)
Keywords: SPAIN DROUGHT/
FEATURE-Medieval church re-emerges as Spain ships in water
Reuters: [2008-05-14 09:04:00]
By Martin Roberts
BARCELONA, May 14 (Reuters) - Perhaps the most striking image of Spain's drought, so severe it has forced Barcelona to ship in water, has been that of the underwater church which emerged from a drying dam.
For most of the past four decades, all that has been visible of the village of Sant Roma has been the belltower of its stone church, peeping above the water beside forested hills from a valley flooded in the 1960s to provide water for the Catalonia region.
This year, receding waters have exposed the 11th-century church completely, attracting crowds of tourists who stand gazing around it on the dusty bed of the reservoir.
Neighbouring Vilanova de Sau is enjoying a tourist boom, its mayor Joan Riera says.
"Every time it's on television, a whole lot of people come," Riera told Reuters by telephone, adding that this was all very well but it had made it impossible to find a table in the town's restaurants: "They all want to eat at the same time."
Drying dams are causing problems still more serious in Barcelona, the region's glamorous capital, which has had to charter ships to bring in drinking water.
After proverbial April showers, reservoirs are now about 25 percent full but will have to provide for a hot, dry summer, so emergency measures may only have been delayed.
For now, the short-term outlook is tolerable. But officials said that without shipped water and a campaign to cut water waste, the city could face its first cut in domestic water supplies since 1953.
"If it doesn't rain and if we hadn't implemented solutions, then Barcelona would be facing supply cuts. But the signs are that work in progress and management measures will work perfectly," said city council environment manager Jordi Campillo.
MORE FREQUENT DROUGHTS?
The tanker vessel Sichem Defender docked at Barcelona on May 13 carrying 19,000 tonnes of water from the southern Catalan town of Tarragona: overall, ships will provide 6 percent of the drinking water for 5.5 million people over the summer, as authorities bring in 10 boatloads from Tarragona, Marseille, and a desalination plant in southern Spain.
The total cost is estimated at 40 million euros ($61.96 million), including 32.5 million for port infrastructure to handle the water.
Ships are a stopgap solution, and while they will quench citizens' thirst for a few months, authorities fear increasingly frequent drought around the Mediterranean might require more permanent measures.
A hosepipe ban has been in force for months in Spain's second city, fountains have been dry and arguments have broken out with other regions over how to share out increasingly scarce water.
The regions of Valencia and Murcia have threatened to complain to the Constitutional Court about a controversial 180 million euro pipeline from the river Ebro delta, due to supply Barcelona from October.
"It's an emergency measure to give drinking water to five million people who might not have it in a few months," said Spain's Deputy Prime Minister Maria Fernandez de la Vega.
A longer-term answer will be a desalination plant, billed as the biggest in the European Union, under construction on the outskirts of Barcelona and due on stream in May 2009.
The plant is just one of several planned or being built in Spain, which will be needed to offset the impact of global warming in coming years in the Mediterranean region, water experts say.
"It was already very important when it was planned but now, with the urgent drought, it has become indispensable," said Tomas Azurra, chief engineer at the plant at the estuary of the Llobregat river.
The plant, which is 75-percent funded by the EU, is being built by a consortium including water firm Agbar and Dragados, part of construction firm FCC. It will supply 20 percent of Barcelona's water.
MORE EFFICIENT
Stephanie Blenckner of the Stockholm International Water Institute said desalination plants were costly but affordable to European countries, and preferable to permanently diverting water from rivers such as the Ebro.
She added that countries like Spain needed to capture more rainwater in future, as climate change would exacerbate alternating periods of drought and heavy rain.
"The rain is the biggest resource we have and we can dispose of it all year round if we have sensible storage opportunities," Blenckner said.
She also predicted increasing tensions due to demand for water from the tourism industry, which accounts for about 11 percent of Spain's economy.
"Water will be essential for tourism and that will sharpen up social consequences, as it already has done in places like Morocco and Egypt," Blenckner said.
The World Bank said in April declining water quality has already knocked around 1 percent off gross domestic product in Morocco, Algeria and Egypt and almost 3 percent in Iran. (Additional reporting by Jason Webb; Editing by Sara Ledwith) ((martin.roberts@reuters.com; +34 91 585 2130; Reuters Messaging: martin.roberts1.reuters.com@reuters.net)) ($1=.6456 Euro)
Keywords: SPAIN DROUGHT/
French stocks - Factors to watch on May 14
Reuters: [2008-05-14 08:33:00]
PARIS, May 14 (Reuters) - Below are leading stories from the French press and company-related news which could have an impact on the French market or individual stocks.
EADS <EAD.PA>
European aerospace group EADS <EAD.PA> posted stronger than expected first quarter operating profit of 769 million euros, up from 88 million a year earlier, and confirmed its main 2008 financial targets before any fresh impact from the latest A380 delays.
Separately, the head of EADS acknowledged the planemaker would have to compensate airlines for the latest delays to its A380 superjumbo, but said the penalties would not be as steep as those which helped to drive Airbus well into the red last year.
For details, see: [EAD.PA-RTRS]
BNP PARIBAS <BNPP.PA>
France's biggest listed bank posted a 21 percent fall in first quarter net profit although the figure came in above the consensus forecast. For details, see: [BNPP.PA-RTRS]
CARREFOUR <CARR.PA>
Carrefour said trading had suffered in China due to anti-French protests over the Olympics as it posted a forecast-beating 10.2 percent rise in first-quarter sales.
For details, see: [ID:nL13747193]
DEXIA <DEXI.PA> <DEXI.BR>
The Belgian-French financial services group reported a 14.5 percent drop in first-quarter underlying net profit, below market expectations.
ARCELORMITTAL <ISPA.AS> <MTP.PA>
ArcelorMittal, the world's largest steelmaker, reported a rise in first-quarter core profit which was only slightly below expectations, but at the top end of its own forecast. For details, see: [ID:nWEB4923]
THALES <TCFP.PA>
Defence electronics firm Thales posted a 5.3 percent rise in first quarter sales to 2.308 billion euros on Tuesday, and reaffirmed its 2008 targets. Revenues rose 7.3 percent on a like-for-like basis. For details, see: [ID:nL13381480]
VINCI <SGEF.PA>
French public works and transport concessions group Vinci <SGEF.PA> posted first-quarter sales up 17.2 percent to 7.2 billion euros ($11.1 billion) on Tuesday, beating expectations on the back of strong construction revenue.
For details, see: [ID:nL13446659]
RENAULT <RENA.PA>
Renault said on Tuesday Nissan will contribute 395 million euros to Renault's Q1 earnings. Renault has a significant stake in Nissan. For details, see: [RENA.PA-RTRS]
AEROPORTS DE PARIS <ADP.PA>
Aeroports de Paris reported first-quarter revenue of 580.4 million euros, up 12.6 percent. According to Reuters Estimates, analysts had expected revenue of 553 million.
For details, see: [ID:nWEB4970]
CNP ASSURANCES <CNPP.PA>
The French insurer reported a 22 percent fall in first-quarter revenue on Tuesday, becoming the latest insurer whose sales have been affected by the tough market conditions caused by the global credit crisis.
For details, see: [ID:nL13440595]
PARIS RE <PRI.PA>
French reinsurer Paris Re <PRI.PA> reported a 29.5 percent rise in first-quarter operating profit on Wednesday helped by higher sales of contracts and capital gains on parts of its equity portfolio. For details, see:[ID:nWEB4955]
NICOX <NCOX.PA>
The French biotechnology company posted a net loss of 13 million euros in the first quarter, compared with a net profit of 1.8 million in the same period a year earlier.
ACCOR <ACCP.PA>
"The group is perfectly in possession of the means to develop its two core activities of hotels and services in the medium term," chairman Serge Weinberg told a shareholders meeting. For details, see: [ID:nWEB4886]
ARKEMA <AKE.PA>
French chemical group Arkema posted first-quarter revenue of 1.492 billion euros. According to Reuters Estimates, analysts had expected to company to report revenue of 1.481 billion.
The firm said first-quarter net profit was 72 million euros, up 64 percent. For details, see: [ID:nWEB4973]
GFI <GFIP.PA>
French IT services company GFI Informatique <GFIP.PA> on Tuesday reported a 12.2 percent rise in first quarter revenue, helped by acquisitions. For details, see: [ID:nL13717220]
LAURENT-PERRIER <LPER.PA>
French champagne maker Laurent-Perrier <LPER.PA> reported full-year revenue of 249 million euros, up 5.4 percent from 237 million euros in the previous year. According to Reuters Estimates, analysts had expected revenues of 251 million euros.
FTSEurofirst 300 index..............................<.FTEU3> DJ STOXX index......................................<.STOXX> Top 10 STOXX sectors...........................<.PGL.STOXXS> Top 10 EUROSTOXX sectors......................<.PGL.STOXXES> Top 10 Eurofirst 300 sectors...................<.PL.FTEU3S> Top 25 European pct gainers.......................<.PG.PEUR> Top 25 European pct losers........................<.PL.PEUR>
Main stock markets: Dow Jones...............<.DJI> Wall Street report .....[.N] Nikkei 225.............<.N225> Tokyo report............[.T] FTSE 100...............<.FTSE> London report...........[.L] Xetra DAX.............<.GDAXI> Frankfurt market stories[.F] CAC-40.................<.FCHI> Paris market stories...[.PA] World Indices......................................<0#.INDEX> Reuters survey of world bourse outlook..........<EQUITYPOLL1> Western European IPO diary...........................<WEUIPO> European Asset Allocation.........................[EUR/ASSET]
Reuters News at a Glance: Equities...............[TOP/EQE]
Main currency report:...............................[FRX/] ((Paris newsroom, tel. +33149495452, Email: paris.equities@reuters.com))
French stocks - Factors to watch on May 14
Reuters: [2008-05-14 07:48:00]
PARIS, May 14 (Reuters) - Below are leading stories from the French press and company-related news which could have an impact on the French market or individual stocks.
EADS <EAD.PA>
European aerospace group EADS <EAD.PA> posted stronger than expected first quarter operating profit of 769 million euros, up from 88 million a year earlier, and confirmed its main 2008 financial targets before any fresh impact from the latest A380 delays. For details, see: [ID:nL13268863]
BNP PARIBAS <BNPP.PA>
France's biggest listed bank posted a 21 percent fall in first quarter net profit although the figure came in above the consensus forecast. For details, see: [BNPP.PA-RTRS]
CARREFOUR <CARR.PA>
Carrefour said trading had suffered in China due to anti-French protests over the Olympics as it posted a forecast-beating 10.2 percent rise in first-quarter sales.
For details, see: [ID:nL13747193]
DEXIA <DEXI.PA> <DEXI.BR>
The Belgian-French financial services group reported a 14.5 percent drop in first-quarter underlying net profit, below market expectations.
ARCELORMITTAL <ISPA.AS> <MTP.PA>
ArcelorMittal, the world's largest steelmaker, reported a rise in first-quarter core profit which was only slightly below expectations, but at the top end of its own forecast. For details, see: [ID:nWEB4923]
THALES <TCFP.PA>
Defence electronics firm Thales posted a 5.3 percent rise in first quarter sales to 2.308 billion euros on Tuesday, and reaffirmed its 2008 targets. Revenues rose 7.3 percent on a like-for-like basis. For details, see: [ID:nL13381480]
VINCI <SGEF.PA>
French public works and transport concessions group Vinci <SGEF.PA> posted first-quarter sales up 17.2 percent to 7.2 billion euros ($11.1 billion) on Tuesday, beating expectations on the back of strong construction revenue.
For details, see: [ID:nL13446659]
RENAULT <RENA.PA>
Renault said on Tuesday Nissan will contribute 395 million euros to Renault's Q1 earnings. Renault has a significant stake in Nissan. For details, see: [RENA.PA-RTRS]
CNP ASSURANCES <CNPP.PA>
The French insurer reported a 22 percent fall in first-quarter revenue on Tuesday, becoming the latest insurer whose sales have been affected by the tough market conditions caused by the global credit crisis.
For details, see: [ID:nL13440595]
NICOX <NCOX.PA>
The French biotechnology company posted a net loss of 13 million euros in the first quarter, compared with a net profit of 1.8 million in the same period a year earlier.
ACCOR <ACCP.PA>
"The group is perfectly in possession of the means to develop its two core activities of hotels and services in the medium term," chairman Serge Weinberg told a shareholders meeting. For details, see: [ID:nWEB4886]
GFI <GFIP.PA>
French IT services company GFI Informatique <GFIP.PA> on Tuesday reported a 12.2 percent rise in first quarter revenue, helped by acquisitions. For details, see: [ID:nL13717220]
FTSEurofirst 300 index..............................<.FTEU3> DJ STOXX index......................................<.STOXX> Top 10 STOXX sectors...........................<.PGL.STOXXS> Top 10 EUROSTOXX sectors......................<.PGL.STOXXES> Top 10 Eurofirst 300 sectors...................<.PL.FTEU3S> Top 25 European pct gainers.......................<.PG.PEUR> Top 25 European pct losers........................<.PL.PEUR>
Main stock markets: Dow Jones...............<.DJI> Wall Street report .....[.N] Nikkei 225.............<.N225> Tokyo report............[.T] FTSE 100...............<.FTSE> London report...........[.L] Xetra DAX.............<.GDAXI> Frankfurt market stories[.F] CAC-40.................<.FCHI> Paris market stories...[.PA] World Indices......................................<0#.INDEX>
Reuters survey of world bourse outlook..........<EQUITYPOLL1> Western European IPO diary...........................<WEUIPO> European Asset Allocation.........................[EUR/ASSET]
Reuters News at a Glance: Equities...............[TOP/EQE]
Main currency report:...............................[FRX/] ((Paris newsroom, tel. +33149495452, Email: paris.equities@reuters.com))
Keywords: MARKETS FRANCE/STOCKS =3 PARIS
Next: French stocks - Factors to watch on May 14