Investor Relations
Egyptian Transport and Commercial Services Co., S.A.E
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Accounting Value:
The value of common shares in the company's accounts. It is determined by deducting all liabilities from all assets and dividing the result by the number of common shares.
 
Acquisition:
Purchasing complete or partial ownership resulting in control of one corporation by another
 
Annual Report:
All companies listed in the stock exchange must issue an annual report including the financial statements for the past year. The report must also show assets, liabilities, revenues, expenses and income in addition to the company's financial status at the end of the past year and other useful information that concerns shareholders.
 
Assets:
Anything a company owns, including cash investments and property.
 
Auditor's Report:
It is a statement shows a neutral technical opinion about the companies' financial statements.
 
Balance Sheet:
A statement which declares the financial status at the end of a certain period. It shows the nature and value of the company's assets, liabilities and equity.
 
Basic Analysis:
Includes company analysis based on assets, profits, management, etc.in addition to the analysis of the sector to which the company is affiliated. Basic research must also consider general economic indicators such as gross national product, interest rates, unemployment, savings, etc.
 
Bear Market:
A condition of the stock market when prices of stocks are generally declining.
 
Beta Co-Efficient:
used to measure the rate of risk related to the stock of a certain company.
 
Bid and Asking Price:
The bid is the highest price a buyer is willing to pay for a security at a given time. The Asking price is the lowest price a seller is willing to take at the same time.
 
Block Order:
A large transaction of stock of 10000 shares or more.
 
Blue-Chip stock:
Stock of companies characterized by quality, reliability and the ability to operate profitably during good and bad times.
 
Board of Directors:
The Board of Directors is elected by shareholders, during the annual General Assembly Meeting, to manage the corporation for a given term. The Board of Directors takes strategic decisions.
 
Bond Issue Agreement:
A written agreement between the issuing company and the bondholders, in which the maturity date, interest rate, and the other issuing terms are determined. Usually the shareholders choose a trustee to act as a watchdog and make sure that the issuing company is paying interest on time and maintaining the company liquidity.
 
Bond Nominal Value:
The value which the company issuing the bond will pay to the bondholder at the maturity date.
 
Bond:
A document on which the company promises to pay the bondholder a specific amount of interest over a specific period of time and repay the bond nominal value on the maturity date. Consequently, the bondholder is a creditor of the corporation not sharing in its ownership.
 
Broker:
An agent who buys and sells securities for a commission.
 
Bull Market:
A condition of the stock market when prices of stocks are generally rising.
 
Callable Bond:
A bond that gives its issuer the right to redeem the whole bond or part of it before the maturity date.
 
Capital Gains:
Profit made by selling securities at a higher price than the original purchase price.
 
Capitalization Weighted Index:
It is the share price index where the index daily value is calculated by dividing the total market value (last closing price multiplied by number of listed shares) of all the index companies by a predetermined divisor
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Capitalization:
Total of the securities issued by a company including common and preferred stock as well as surpluses.
 
CASE 30 Index:
An index of the 30 most actively traded listed stocks. The CASE 30 index is measured through the rate of market capitalization after measuring the free float of the shares. The market capitalization is calculated by multiplying the number of listed shares by the share closing prices and the total is multiplied by the share free float.
 
CASE:
Cairo & Alexandria Stock Exchange. CASE is the only registered Stock Exchange in Egypt. CASE is a single entity with two different locations with remote trading taking place in the Alexandria Exchange. Both Cairo and Alexandria Exchanges use the same trading system and databases and are run by the same board of directors. The Chairman is appointed by the Prime Minister for a renewable three-year term. 60% of board members are elected by the market participants (brokerage companies, fund management companies, investment banks, etc.). The remaining members (40%) are appointed as follows: a member from the Capital Market Authority, a member from the Central Bank of Egypt and two members from the Banking Syndicate.
 
Closing Price:
The closing price of any security traded on CASE is the weighted average price of the security’s daily trading. It is equal to the total trading value of the security divided by the total trading volume of the same security. The closing price of the stock changes on the next day if 100 shares or more are traded.
 
CMA:
The Capital Market Authority is the market regulator for the Egyptian capital market. It was established in 1980 to regulate and monitor all companies dealing with the capital market as governed by Law No. 95 for the year 1992.
 
Common Stock:
Investors who purchase common stock have the right to vote at the company's annual general assembly and receive dividend payments. If a company fails or is liquidated, common stockholders are paid after liability holders and preferred stockholders.
 
Convertible Bond:
A bond which may be changed to common stock in accordance with the issuance terms.
 
Corporate Bond:
A bond issued by a corporation.
 
Corporate Governance:
Rules, regulations and procedures that assist in increasing the efficiency of business management and control as well as balancing the interests of various related parties.
 
Current assets:
Those company assets that can be converted to cash or consumed during one year.
 
Current Liabilities:
Short- term liabilities the company has to pay within one year such as payable wages, payable dividends….etc.
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Current Yield:
The current yield on a bond is equal to the paid coupon value divided by its price.
 
Diversification of Investments:
Variation in the investment portfolio (long-term and short-term investments) among different types of securities and various companies in various sectors
 
Dividend:
Payment proposed by the company board of directors and approved by the general assembly to be distributed among the shares. For common shares, the dividend varies with company profitability and the available cash as the board of directors can decide to reinvest the profits in other projects or buy other assets rather than distribute those profits.
 
Ex-Right Date:
The date on which a new stockholder does not have the right to receive declared dividends.
 
Face Value:
The value appearing on the face of a bond.
 
Financial Risks:
Include all risks related to the management of the company’s assets and liabilities. This type of risk requires continuous control and monitoring according to the direction of the market, prices, commissions, economic conditions and relationships with related parties like financial institutions. These risks may lead to profit or loss.
 
Fiscal Year:
the company accounting year. The fiscal year differs from one company to the other according to the nature of its activities. For some companies, the fiscal year begins from 1st July 1st to June 30th. In other companies the fiscal year begins from January 1st to December 31st.
For example : if a company decides to split its shares 2:1 and it has 1,000,000 outstanding shares and the market price of the share was L.E. 100 before the split, then there will be 2,000,000 shares with a market price of L.E. 50 after the split.
 
Free Float:
Free float means the freely floated shares that are traded and held by the public. Strategic ownership by any individual or entity, whether private or public, is excluded from the free float.
 
Free Trading on CASE 30 Companies:
Shareholders, whether private or public companies, banks, investment funds (private or public sector) owning more than 5% of company shares (strategic owners) are excluded from the company’s free trading.
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GDR:
A Global Depositary Receipt or GDR is a security that can be traded in the Global Capital Markets. It is issued by an international bank in US dollars or any other foreign currency traded in the free market, in return for keeping a coverage of equivalent local shares in cooperation with a local issuing company. The securities of this company are kept with the agent of the issuing bank and the depository bank (usually a local bank). Consequently those receipts are traded instead of the original securities in global capital markets such as the London Stock Exchange. The depository receipt owner is in fact the owner of the local shares for the purposes of dividend collection, stock selling, etc.
 
Going Public:
When a company sells shares to the public.
 
Government Bond:
A bond issued by the government for public expenditure.
 
Holding Company:
A corporation that owns most of the securities of its affiliated companies, with the right of voting and control.
 
Income Statement:
A report on a company's financial status over a period of time. It shows the revenues earned, the expenses incurred and the net profit/loss.
 
Independent Board Member:
The board member is considered to be independent, if he/she:
  • Is not employed by any party related to the company and has not been during the preceding five years.
  • Does not have a family relationship with any party related to the company
  • Is not affiliated with any company providing consulting services to the company or any of its related parties.
  • Does not have any personal interests with the company or with any of its related parties or with its top management.
  • Is not affiliated with any non-profit organization or association funded by the company or one of its related parties
  • Is not working in an executive position in any other company in which executive employees of the company are acting as board members.
  • Does not have any relationship resulting in financial dealings with the company, its mother company or its subsidiaries or affiliates
 
Index:
A numerical value used to measure changes in financial markets. Expressed as a percentage that describes the change at a particular point of time compared to the value at the starting point. The index measures the movement of stocks, bonds, funds, etc. up and down, which reflects the market price and direction. The index is the investors' yardstick for the level of the entire stock market and for the performance of a certain stock within the market.
 
Inflation Rate:
An important economic indicator. It shows the rate at which prices are rising.
 
Initial Public Offering (IPO):
Also called the issuance market. It is the system by which companies finance their projects by issuing corporation stock to investors for the first time.
 
Institutional Investors:
Institutions such as the pension funds, insurance companies, investment funds, investment banks, etc. whose main purpose is to place their own capital and the funds under their control in various investments.
 
Investment Bank:
The underwriter, acting as a go-between a single investor or many investors and companies that want to issue new securities in the market.
 
Investment Company:
A company that uses its capital to invest in different securities.
 
ISIN Code:
ISIN means International Securities Identification Number. It is a unique international code which identifies the securities issued.
 
Legal Risks:
All risks resulting from breaches of regulations, rules and systems that the company is required to comply with or resulting from ambiguity of the rights and obligations stemming from the company’s activities .
 
Liabilities:
All amounts owed by a company. Short-term liabilities include accounts payable and salaries and taxes due while long-term liabilities include long-term bank loans, mortgage bonds, etc.
 
Liquidity:
Refers to how easily financial securities can be converted into cash and the ability of the market to absorb a reasonable amount of buying and selling transactions of a certain security, at reasonable and unvaried prices. Liquidity is one of the most important features of a good market.
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Listed Stock:
Shares listed on a stock exchange. Various stock exchanges have different listing standards that any listed company must commit to.
 
Market Price:
The last trading price of any security.
 
Market Risks:
Include risks related to changing market circumstances resulting from complete or partial economic changes (changes in supply & demand structure) or from changes in market value of assets due to the conditions of the economic cycle.
 
Maturity Date:
The date on which the value of a bond must be paid
 
Members (Brokers):
Brokers who are allowed to trade on CASE.
 
Merger:
Combination of two or more corporations to form a new economic entity.
 
Mutual Funds:
Mutual funds are usually two types, closed-ended and open-ended. Shars of closed-ended funds can be bought and sold like other shares. Open-ended funds are sold to investors directly and the investor can transfer them by giving them back directly to the fund issuer.
 
Net Bond Value:
The value of securities, after deducting interestsaccrued from the date of the last coupon payment until the settlement date.
 
Net Investment Value:
An investment company computes its assets daily, by totaling the market value of all securities owned. All liabilities are deducted and the balance is divided by the number of shares outstanding.
 
Odd Lots:
Stock transactions that involve less than 100 shares.
 
Operational Risks:
Include all risks resulting from the daily operations of the company in all of its activities. These risks usually do not include opportunities for profit. Instead a loss is either realized or not realized.
 
OTC (Over-The-Counter):
This term refer to transactions on unlisted securities. The OTC market in Egypt is divided into two markets: Deals Market and Orders Market.
 
Overbought:
It refers to a single security or the market as a whole after a period of continuous price increases which may lead to prices becoming "too high�?.
 
Oversold:
The reverse of overbought. A single security or a market after a period of declining prices which may lead to unreasonable price decreases.
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Portfolio:
Holdings of securities by an individual or institution.
 
Preferred Stock:
A class of stock that gives holders a priority over common stockholders receiving dividends and proceeds from liquidation before common stockholders.
 
Price-Earnings Ratio:
A popular way to compare stocks selling at various price levels. The Price Earnings Ratio or P/E ratio is the price of a share of stock divided by earnings per share for a twelve-month period
 
Prospectus:
A document that provides details about a new offering of securities for sale to the public. It gives a detailed financial background of the issuing company, how the proceeds of the securities will be used, and other important information which may concern the investors.
 
Recession:
A period of no economic growth or low economic growth and high unemployment.
 
Redemption Price:
The price at which a bond may be redeemed at maturity date.
 
Reputation Risks:
These risks may arise through negative public opinion of the company due to lack of competency in managing company systems efficiently.
 
Return On Assets:
Net earnings of a company divided by its assets.
 
Return on Coupon:
The distributed profits (coupon) of every share divided by the share market price.
 
Return On Equity:
Net earnings of the company divided by its assets.
 
Right to Vote:
The right of common stockholders to vote on the company's policies and decisions at the Annual General Assembly Meeting. The voting power of a stockholder is proportionate to the number of shares owned.
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Risk Management:
Procedures followed by organizations on a regular basis in order to mitigate the risks associated with their activities. The main aim of applying these procedures is to take advantage of opportunities and avoid threats. Risk Management is one of the parts of Corporate Governance practices such as disclosure, transparency, accountability and reliability. Therefore, it is a basic component of strategic management in any effective corporation as well as being part of its culture and activities.
 
Risks:
Set of complex potential events or results. Occurrence of any risk might produce threats to success (negative side) or opportunities (positive side) except health and safety risks which has are associated only with a negative side.
 
Secondary Market:
The market in which securities are traded between buyers and sellers , where earnings resulting from buying and selling go to the buyers and sellers themselves not to the company issuing the securities (unlike the IPO process).
 
Settlement:
Generally, it is a transaction involving securities from the buyer to the seller and the settlement of securities for the buyer and seller broker. In the Egyptian market the settlement takes place on day T+4 and T+3 for securities traded by the Central Trading System and on day T+2 for shares with no limits on price fluctuations.
 
Split:
The division of the outstanding shares of a corporation without any change in shareholder equity, leading to the reduction of the share market price.
 
Stock Dividend:
Dividends in the form of shares distributed by the company so that each shareholder receives free shares in proportion to his/her current stake in the company as common shares. These shares constitute an increase in company capital.
 
Stock Exchange:
An organized marketplace for shares and bonds with its own rules, in which transactions of supply and demand are performed on behalf of investors by brokerage companies (members)
 
Stockholders' Equity:
The value off all the stock owned by the shareholders of a certain company. It is usually the sum of (paid capital + reserves + retained earnings).
 
Stockholders of Record:
Stockholders whose names are registered on the books of the issuing corporation.
 
Subscription Rights:
When a company decides to increase its capital by issuing additional securities, it may give its current shareholders the opportunity or option before others, to buy new shares in proportion to the number of shares owned by each at a price that is usually less than the market price. If the company’s current shareholders prefer not to participate, the company can sell the securities to any other investor.
 
Supply Price :
The securities price offered in the market or the price at which the owner wishes to sell. It is the opposite of the demand price at which investors wish to buy.
 
Syndicate:
A group of investment bankers who together underwrite and distribute a new issue of securities or a large block of an outstanding issue.
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Technical Analysis:
Studies share price movements, volume of trading, market trends and patterns in order to predict future price movement, supply and demand. The following entities are also excluded from free trading: public sector banks, public insurance companies, public sector institutes, holding companies, Employee Share Ownership Associations (ESAs). Also, the founders of any company, no matter the size of their ownership, are excluded from free trading as they are not allowed to sell their shares, according to the law, during the first two years of company operation. The ownership of any public investment fund (banks, public insurance companies) of less than 5% is considered free trading since they are privately managed by private fund management companies.
 
Ticker:
A system that continuously provides the latest market prices and the volume of securities transactions.
 
Transfer:
This term may refer to two different operations: First, the delivery of a stock certificate from the seller’s broker to the buyer’s broker, normally accomplished within a few days or second, to record the change of ownership in the books of the corporation.
 
Treasury Stock:
Stock issued by a company but is later reacquired through the Stock Exchange. Treasury stock does not convey the right to dividends and voting while held by the company.
 
Turnover Ratio:
A percentage measured by dividing the value of the traded shares during a year by the market capitalization of all the shares listed in the stock exchange during the same year.
 
Unlisted Stock:
Securities not listed on a stock exchange or not fulfilling stock exchange listing requirements.
 
Volatility:
The measurement of how much a security fluctuates over a period of time.
 
Yield to Maturity:
The total earnings of the investor for keeping the bond to the maturity date. Yield to maturity is equivalent to all of the interest (coupons) that the investor receives from the date of buying the bond to the maturity date in addition to any capital gain or loss.
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- Company Profile
- Vision, mission, values
- Code of Ethics
- Organization Structure
- Integrated Management System
- Subsidiaries & Affiliates
 
- Financial Statements & Reports
- Earning Releases
- Investor Presentations
- Annual Reports
- CG Code, Structure & Policies
- Ownership Structure
- Shareholders Structure
 
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