PM — A somber start to the week

Good afternoon, ladies and gentlemen. We begin today’s issue on a somber note after a fire broke out inside an Imbaba church, killing and injuring dozens of people.

THE BIG STORIES TODAY

#1- At least 41 people were killed and 14 injured earlier today in a fire inside the Abu Sefein church in Imbaba, according to a Coptic Church statement citing health officials. A total of 55 people were transported to the hospital, after 30 ambulances arrived at the scene after being alerted of the fire at 8:57am, the Health Ministry said in a statement. The electric fire broke out while around 5k people were attending mass, Reuters reports, citing security sources. The fire blocked an entrance to the church, triggering a stampede, they added.

#2- Ghazl El Mahalla retail subscription deadline extended: Ghazl El Mahalla FC has extended the deadline for the subscription to the retail portion of its IPO for two more weeks until Sunday, 28 August, according to an EGX news bulletin. The extension comes as the subscription was not fully covered amid weak investor interest.

ALSO- President Abdel Fattah El Sisi swore in the 13 new members of cabinet today, Ittihadiya said. The new ministers’ appointments were approved over the weekend by the House of Representatives in an emergency session.

THE BIG STORY ABROAD

Red-hot oil prices did good things for Aramco’s bottom line: Saudi Aramco reported record 1Q 2022 and 1H 2022 earnings on the back of soaring crude oil prices and volumes sold, the company said in its earnings release today (pdf). Aramco’s net income soared 90% y-o-y in 2Q 2022 to USD 48.4 bn, while 1H 2022 net income came in at USD 87.9 bn, up 86% y-o-y. The bumper earnings come as oil prices have hovered mostly above USD 100 per barrel since March. The story is on the front pages of much of the international business press: Financial Times | Wall Street Journal | Bloomberg | CNBC.

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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• President Abdel Fattah El Sisi appointed 13 new ministers to cabinet over the weekend, with changes including the ministers of public enterprises, trade and industry, education, tourism, and health.
• The Central Bank of Egypt is likely to resume its tightening cycle and raise rates for the third time since March when it meets this Thursday in a bid to tamp down on inflation and support the EGP, according to our customary poll of economists and analysts.
• Cabinet approved measures announced by Prime Minister Moustafa Madbouly last week to limit the country’s use of electricity, raise natural gas exports, and increase inflows of foreign currency.

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: Amid Egypt’s ambitious plan to boost our export activity and slash imports, 1H2022 government data shows our non-oil exports increased 20% y-o-y to USD 19.35 bn — which works out as a 12.3% q-o-q increase to USD 10.26 bn in 2Q2022, up from USD 9.14 bn in 1Q2022. Chemical and fertilizer exports have been performing particularly strongly, with building materials and food also making significant contributions to export revenues, the data from the General Organization for Export and Import Control (GOEIC) shows.

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MNHD shareholders have the final word on SODIC takeover bid: Madinet Nasr Housing and Development will hold a general assembly meeting on Tuesday, 16 August, to decide whether to allow SODIC to conduct due diligence ahead of a potential takeover.

Interest rates: The Central Bank of Egypt will meet to discuss interest rates next Thursday, 18 August.

National Dialogue: The board of trustees overseeing the National Dialogue will hold its next meeting on 27 August. On the agenda: Choosing the rapporteurs for all of the committees and subcommittees of the social, political and economic tracks, and preparing the agenda and topics of discussion for the dialogue.

The Madbouly government will on 1 September begin rolling out new measures designed to bolster the social safety net. Prime Minister Moustafa Madbouly met with ministers yesterday to lay out the timeline for implementing emergency social protection measures to support vulnerable citizens amid surging inflation, cabinet said in a statement.

☀️ TOMORROW’S WEATHER- Temperatures in Cairo will hit 38°C tomorrow during the day before falling to 24°C at night, our favorite weather app tells us.

Return of the meme-stock investors? Retail investors in the US have been showing new signs of life after largely keeping their heads down during this year’s stock selloff, driving sizable gains in some meme-stocks, the Wall Street Journal reports. Individual investors had purchased a net USD 1.35 bn a day of US stocks and ETFs on average as of 11 August — the highest monthly average since the recent bull market peaked in January — according to macro and investment research firm Vanda Research. The rally pushed up shares in Bed Bath and Beyond and AMC Entertainment Holdings at least 68% this month, while usual suspects Tesla, Apple, Amazon and Meta remain the stocks most sought after by retail investors this month, data shows. And activity is up on WallStreetBets forum — a subreddit for stock and option trading discussions, which launched GameStop.

Lower prices could be the draw: Many retail investors have ventured into the market because of recent lower prices, the WSJ notes. Recent stock splits from companies including Amazon have made it cheaper for individual investors to dip their toes in, it adds.

But don’t expect a repeat of the 2020-21 meme-stock feeding frenzy: Retail investor activity is still a long way off the highs seen in 2021, the WSJ tells us. Current inflation and fears of recession are fueling market uncertainty for both professional and newbie investors, it adds. And overall, markets are still down this year — meaning there’s little scope for investors to pour money into them as they did in 2020 and 2021.

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How heatwaves are unearthing lost archaeological history: Extreme hot weather and drought is bringing to light some of the Earth’s lost history, including ancient cities, past-shipwrecks and others, Bloomberg reported. A dried-up River Po, Italy’s longest river, has revealed World War II wreckage, including a German tank and cargo ships. Aceredo — a ghost village near Spain’s borders — has been revealed, thanks to a drought hitting the village that was flooded in the 1990s to clear the way for Alto Lindoso reservoir. And in a surprise, extreme hot weather in the UK has unearthed a hidden 17th century garden, dubbed the Great Parterre, that was once home to flower beds and paths. The Middle East has also seen a historical site uncovered, with the ruins of an ancient city in Iraq emerging from a drought-hit area of Mosul’s reservoir this year. Kurdish and German archaeologists inspected Kemune, an ancient city along the Tigris River that was held under the Mitanni Empire from 1550 to 1350 B.C.

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Kick off the work week with Netflix's new opposites-attract romance, Purple Hearts: The film centers around a struggling musician who marries a troubled Marine so they can both get military benefits. Starting out as virtual strangers, Cassie (Sofia Carson) and Luke (Nicholas Galitzine) get to know one another through writing, and eventually, the lines of their marriage of convenience become blurred. Despite its predictable plot, the movie takes us on intriguing character journeys and an empathic depiction of human relationships. While Purple Hearts is classified as a typically-light romantic drama, director Elizabeth Allen Rosenbaum takes on serious issues including feminism, racism, the lives of immigrants, and consent with tact and compassion.

Fun fact: Purple Hearts is currently the most watched film on Netflix, drawing nearly 102.6 mn viewing hours worldwide last week — this marks the highest number of viewing hours for a movie on the streaming platform in 2022.

⚽ It’s a packed day for major European leagues.

In the Premier League: Chelsea clashes with Tottenham in London’s Derby at 5:30pm, while Nottingham Forest v West Ham are currently on the pitch as we dispatch after a kick-off at 3pm.

In La Liga: Real Madrid begins its league opener against Almeria at 10pm. Càdiz plays against Real Sociedad at 5:30pm, while Valencia clashes with Girona at 7:30pm.

In Serie A: We recommend watching Lazio v Bologna at 6:30pm, and Salernitana v Roma at 8:45pm.

And at home: The current season’s Egypt Cup continues, with Al Ahly and Misr Lel Makassa hitting the field at 8 m for the Round of 16, and Suez v Smouha in the tournament’s Round of 8 at 7pm.

PSA- Don’t forget to sign up for the Enterprise Fantasy League via this link, or by using this code: 8o4sut.

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With summer vacation in full swing, treat the kids to a day of fun while you enjoy a delicious meal at Sheikh Zayed’s Clubliko. Despite an abundance of dining options across Egypt, there aren’t many restaurants that are kid-friendly — eating out with children typically means you’re going to sacrifice your food preferences for restaurants with booster seats and chicken nuggets. Enter Clubliko, a four-level kid heaven with a huge variety of indoor and outdoor play areas, and a restaurant that offers some of the tastiest dishes we’ve had in Cairo. Their surprisingly diverse menu includes sophisticated dishes for foodies of all ages, and simple bites that are certain to satisfy young picky eaters. We recommend their lemon-pepper salmon, the beetroot avocado salad, and the buttery German schnitzel. Word of caution: Your kids may not want to leave when it’s time to go, but on the flip side, not one person will complain if they decide to play hide-and-seek under the table.

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The Citadel International Festival for Music and Singing kicks off today at the Cairo Citadel. Singer Medhat Saleh will take the stage during the festival’s opening night, along with the Small Fingers Orchestra and Amr Selim’s musical band. Organized by Cairo Opera House and held in cooperation with the Tourism Ministry, the festival will include 42 different concerts over the next 18 days.

Al Hezb El Comedy is celebrating its 11th anniversary tonight at Room Art Space New Cairo: Expect to see an entire generation of comedians, as the stand-up comedy platform invites everyone who has performed with them over the past decade to join them on stage starting at 9pm.

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Kismet is a laugh-out-loud thriller that takes down wellness influencer culture. Lifelong New Yorker Ronnie Khan has finally put an end to years of abuse by her aunt and moved to the wellness hotspot of Sedona, Arizona with socialite-wellness-life coach Marley Dewhurst. Shortly after their move, many of the local glam gurus start showing up dead, and Marley seizes the chance to boost her reputation in town. Meanwhile, Ronnie savors her new affluent lifestyle like a delicious smoothie, until she starts to realize that all is not well in the wellness industry and wonders if she should trust her new friends or her own instincts. Author Amina Akhtar makes fun of the pretentiousness of influencer culture through a page-turning plot that kept us hooked from the very beginning to the unexpected ending.

The EGX30 was essentially flat at today’s close on turnover of EGP 1.45 bn (45.4% above the 90-day average). Local investors were net buyers. The index is down 16.4% YTD.

In the green: AMOC (+5.1%), Telecom Egypt (+3.9%) and Housing and Development Bank (+3.4%).

In the red: Ibnsina Pharma (-3.6%), Egyptian Kuwaiti Holding-EGP (-2.3%) and EFG Hermes (-1.6%).