Thursday, 14 May 2015
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WHAT WE’RE TRACKING TODAY
The MENASOL 2015, Middle East & North Africa Solar Conference and Expo closes out today Dubai. Heads of all major solar players and renewable energy government officials from Egypt, the UAE, Morocco and others will be in attendance. View the official event page here for more details.
The two-day EBRD Annual Meeting and Business Forum 2015 begins today. View the event page here.
The two-day GCC-U.S. summit at Camp David is set to begin today, although only Kuwait and Qatar will be represented by their heads of state, with the rest sending deputies in a move that is widely being perceived as a snub. Simon Henderson’s piece on the perceived fallout may be found in our Worth Reading section below.
Looking for something to do on Saturday? Try TEDxCairo: Continuum at the AUC’s New Cairo Campus. View the event page here.
LAST NIGHT’S TALK SHOWS
Khairy Ramadan’s rundown on the news included a call from Wafd party spokesman Hossam El Khouly, who claimed that a reconciliation between party members who have withdrawn their confidence in party leader Sayyed El Badawy is currently underway following the personal intervention of President Abdel Fattah El Sisi.
Ramadan also commented on the exclusive Al Ahram interview with Egyptian football legend/Ikhwani supporter, Aboutrika. “This is the first time that Aboutrika has spoken publicly since June 30. In the article, he denied many things like having ties with terrorists and meeting Morsi, but he did not answer the two fundamental questions: Are you a member of the Muslim Brotherhood? And, Where do you stand on June 30? He is free to choose whichever side pleases him, but he needs to take a clear stance,” said Ramadan. (Readers will note the Ahram link above is to a very brief summary only; the newspaper has opted not to publish the full interview online to force readers to purchase print copies of the newspaper.)
Ramadan’s studio guest was Dr. Yehia El Shazly, a Professor at Ain Shams University and a member of the National Council to Combat Hepatitis C. “Last night El Sisi, put Virus C on the national agenda,” said El Shazly. “The President called on pharmaceutical companies to make available 1 mn doses of Virus C treatment annually at a reduced price to treat the disease that approximately 22% of the Egyptian population suffers from. He said 1 mn doses, but I’m sure he meant treatment for 1 mn people. Each person needs three doses, so it’s actually three mn doses that he is looking for. In any case, five pharmaceutical companies have responded to the President’s call to provide affordable medication and more will follow. President El Sisi will go to heaven for this. Just like Egypt is now free of bilharzia, it will be free of Virus C.”
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SPEED ROUND
MSCI removed Telecom Egypt from its MSCI Egypt index as part of the changes announced in its May Semi-Annual Index Review (pdf). This leaves the MSCI Egypt index with just three stocks — the minimum according to the continuity rules MSCI has for emerging markets. They include CIB, Talaat Moustafa Group and Global Telecom Holding. The index provider is scheduled to issue its country review of Egypt in the second week of June. The removal of TE sent the company’s shares plunging its daily limit of 10% yesterday; Reuters quotes EFG Hermes as noting, “The fall to three stocks does indirectly put Egypt’s emerging market status at risk: the index becomes less diverse -CIB is now 72 percent of the MSCI Egypt index – and investor interest could fall, leading to lower turnover and market cap.” MSCI also launched a standalone Saudi Arabia index.
In related news: Telecom Egypt reported a 9.9% rise in net income to EGP 604 mn as it released its 1Q15 results yesterday. (Read in Arabic)
EFG Hermes delivers fifth quarter of earnings north of EGP 100 mn. The investment bank saw net income rise 14% to EGP 136 mn despite the erosion of brokerage revenues that sapped profits industry-wide across MENA in 1Q. Revenues climbed 7% year-on-year to close the quarter at EGP 611 mn. “I am pleased to report such strong earnings despite the challenges that have buffeted our industry since the plunge in oil prices accelerated last fall,” said CEO Karim Awad. “Even as low petroleum prices and geopolitical stress saw brokerage volumes decline for our industry MENA-wide, revenues from our Investment Bank platform were broadly stable in a testament to the quality of our team and operations.” Advisory fees from IPOs and M&As as well as contributions from the asset management division and capital markets function compensated for the fall-off in brokerage income and lower contributions from the firm’s private equity division, which is building a new AUM base while finding-up historical funds. (Read the earnings press release here on the firm’s website, or check out the full earnings release in pdf)
EFG Hermes is launching a leasing business through a new, wholly-owned subsidiary, EFG Hermes Leasing, within a month’s time, Awad said in the closing paragraph of his earnings press release, prompting coverage from the local press. You can visit the new EFG Hermes Leasing website here.
CIB reported record first quarter results yesterday, posting new highs on both the top and bottom lines, with revenues up 47% to EGP 2.6 bn and net income rising 38% to EGP 1.1 bn. The bank’s consolidated returns on equity and assets were both up comfortably over the same quarter of last year, while liquidity and foreign currency ratios easily topped regulatory minimums. Said Chairman and MD Hisham Ezz Al-Arab: “Lending activity continued to recover alongside renewed economic optimism. Our loan portfolio added EGP 4.5 bn, growing 8% in the quarter with strong contributions from both institutional and retail banking. Trade service volumes also grew 37%, contributing to the Bank’s excellent non-interest income performance. Concurrently, deposits grew an impressive 11%, adding just under EGP 14 bn in the quarter. Our solid performance was reflected in our profitability and efficiency indicators, with consolidated return on average equity hitting a sector-leading 32.1%, our highest in five years.” (Read more in the bank’s earnings release here, in pdf)
At least four regional banks are reportedly seeking to acquire Piraeus’ Egypt operations:National Bank of Kuwait and Lebanon’s Byblos Bank are in the hunt to acquire Piraeus Egypt, following the latter’s declaration of its intent to exit the market, according to Al Mal. Moroccan media are reporting that North African giant Attijariwafa is also interested in entering the Egyptian market through Piraeus. Al-Borsaadds that Morocco’s Wafa bank is also reportedly interested. NBK, Byblos and Attijariwafa have all reportedly received the green light to start due diligence.
In related news: Al-Mal reports that no less than six banks are now doing due diligence on Citibank’s Egyptian retail banking portfolio, citing an unnamed source at the Central Bank as saying Citi is expected to make an announcement as to the winner within three months. The six include CIB, HSBC, Abu Dhabi Islamic Bank, Emirates NBD, Mashreq Bank, and Audi Bank.)
The CBE has reportedly capped the interest rate banks can pay on USD-denominated short term deposits to 1.5% over the three-month LIBOR, according to Al Mal. The publication notes that the CBE’s intervention came after noticing that banks were bringing short-term rates close to the ones paid on medium and long term certificates of deposits. Al Mal expects the interest rate cap to range between 1.75-1.78% for deposits with maturities under one year.
GDP growth is expected at 3% in the second half of FY2014/15, Planning Minister Ashraf El Araby said at a news conference, according to Reuters. For the whole fiscal year, El Araby projects economic growth to be around 4%. The minister expects GDP growth to register 5-6% in FY2015-16 in the best-case scenario and hopes to bring in USD 10 bn in FDI during the year. By FY2018-19, the planning minister says Egypt could hit a 6.5% growth and to see net international reserves at the CBE grow to EGP 28 bn.
On a related note, El Araby estimates that the state’s investment budget for the new fiscal calendar will be EGP 417 bn, an EGP 80 bn rise from the 2014-15 state fiscal year ending in June. According to Al Borsa, EGP 180 bn of the sum will be invested through the public sector, while EGP 237 bn will be invested through the private sector. El Araby added that the government is also considering forming a sovereign wealth fund to invest in untapped assets. His announcement also included a plan to connect 1.2 mn households with gas in the 2015/2016 year.
Charter subsidy reduction premature, say German tour operators: German tour operators are arguing against Minister of Tourism Khaled Ramy’s plans to reduce subsidies on charter flights in light of a recovery in tourism. “Dietmar Gunz, head of FTI, the largest German tour operator to Egypt, commented: “We are seeing high double-digit growth rates but the destination is still in an investment phase.” Egypt should be careful about prices given the price reductions in Turkey, he warned.” (Read)
Every citizen has the right to internet access, CIT Minister says: CIT Minister Khaled Negm says the ministry is willing to support wider access to high-speed ADSL either through the NTRA or using financing from the Finance Ministry if need be. Given the prices presented by ISPs, Negm believes that subsidizing internet access might be a necessity. (Read in Arabic)
The average weekly income of Egyptians grew by 5.9% y-o-y in 2014 to EGP 806, according to CAPMAS. In the public sector, the average employee made EGP 1,026, whereas it was just EGP 506 in the private sector despite it rising by 15.3% y-o-y. Disappointingly, women still make less money than men, with females earning an average of EGP 746 a week compared to males’ average intake of EGP 817. One statistic we do not believe: the average public sector employee works 53 hours a week.
In the MENA region, inequality begins early in life, even before birth, according to World Bank consultant Will Stebbins, including wide variations in prenatal care, access to nutrition, health services, and education. A World Bank report calculated that in Egypt, children born to the poorest 20% of households have a 2.8% chance of dying before their first birthday, 154% higher than when compared to children born to the richest 20% of households, driving Stebbins to list 12 reasons why the Arab world needs to pay more attention to early childhood development.
KSA claims its oil price strategy was a success: In what it’s billing as “rare insight into the kingdom’s thinking on oil strategy,” the FT quotes an unnamed Saudi official speaking in Riyadh as saying the kingdom’s strategy has been a success. Oil has hit bottom, he said, and “won’t be going back,” adding, “There is no doubt about it, the price fall of the last several months has deterred investors away from expensive oil including US shale, deep offshore and heavy oils.” Read the FT piece against this story from Bloomberg (or the FT‘s version, if you prefer) covering the International Energy Agency’s report yesterday that OPEC’s war with the rest of the world for market share may be a long way from done. (Readers may note that the IEA Oil Market Report in question won’t be released to non-subscribers until this time next month. The next report drops on Thursday, 11 June 2015.)
Israeli officials are considering gas exports from Tamar until the Leviathan antitrust negotiations are resolved, Israeli government officials told the Jerusalem Post on Wednesday. (Read)
‘Investors Double Down on Spring Turnaround,’ declares the WSJ this morning, noting that oil, the euro and other assets “beaten down” by the surge in the greenback have been in vogue for two months now. UBS Wealth Management’s CIO also reports wide interest in emerging market assets including “the stocks of Indian, Chinese and Filipino companies, the sovereign bonds of Russia, Mexico and Brazil, and the Mexican peso: ‘Every day, I get questions from clients who want to participate.”
The Carnegie Endowment’s Angela Boskovitch presented a photo essay titled Cairo’s Transit Woes covering how nearly 22 mn Cairenes commute through the capital.
A camel (yes, a camel) was filmed running loose at AUC. Mada Masr provides additional details on the incident. (Watch, running time 00:21)
Jokes about classism made by Englishmen rarely go over as intended, as UK Ambassador to Egypt John Casson (@fcojohncasson) is now discovering. The ambassador, who is both exceptionally active on Twitter and an obvious fan of Egypt, recently tweeted in response to a UK Embassy job posting that they would consider all comers, even the children of garbage collectors — an obvious comment on the recent furor over now-former Justice Minister Mahfouz Saber’s remarks. Twitter, which becomes a meaner place with every passing day, responded with #Etroudo_Elsafir_Elbritanny (basically: Kick out the British ambassador). The tempest in a teapot has now crossed over into the mainstream press as Al Mal has picked it up and no less a ‘journalist’ than Hala Sarhan has declared that it’s unacceptable for foreign residents of Egypt to have a sense of humor. You could read Sarhan’s remarks, but you’ll get more out of going to Casson’s twitter feed to skim over the his occasional tweets of #ReasonsToLikeCairo, with accompanying photographs. The ambassador was on #29 last we checked.
CORRECTIONS: In yesterday’s issue, we incorrectly stated that President Abdel Fattah El Sisi gave his second monthly address to the nation; it was his third. In the story about the possible opening of a Ford assembly plant, it was the Minister of Industry and Trade who was in attendance, not the Minister of Irrigation. In Tuesday’s issue, we goofed on the currency figure in our note that Mohamed Fahmy was suing Al Jazeera for USD 100 mn; he’s suing for CAD 100 mn in damages, or about USD 83 mn.
***
A MESSAGE FROM PHAROS HOLDING
The Future May Not Be So Sweet for Delta Sugar
Pharos Research reiterated its call for Delta Sugar Company (DSC) stocks in a recent publication, recommending investors sell their stakes after the company sustained losses of EGP 1.1 mn in the first quarter of 2015. This recommendation is largely based on a bleak outlook for international sugar prices as well as anticipated cost-driven margin erosion at DSC—due to the surging costs of energy and raw materials. Moreover, the company’s unwillingness to compromise on its cash dividend policy despite the absence of funds—which saw them borrow EGP 221.8 mn in 1Q15—raises concerns about Delta Sugar’s financial position.
Echoing Pharos’ views, Egypt’s Central Audit Agency issued a separate report shortly after expressing similar concerns.
For more details click here.
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WORTH READING
The Saudi Snub: Ever since the announcement that King Salman would not be attending the Camp David summit this week, pundits have debated whether or not the move signaled Saudi displeasure at American policy toward Iran, prompting White House press secretary John Earnest to try to dispel such claims. The Washington Institute’s Simon Henderson is firmly in the camp that argues that the no-show is a snub, and notes the contrast of the GCC attitude toward the White House with that of the GCC toward France. “Crown Prince Muhammad bin Nayef and Deputy Crown Prince Muhammad bin Salman — stopped in Paris on their way to the United States for talks with French Foreign Minister Laurent Fabius, who has taken the hardest line in the negotiations with Iran. The meeting comes just a week after French President Francois Hollande was guest of honor in Riyadh at a GCC meeting, the agenda of which was essentially a dress rehearsal for Camp David.” (Read The Saudi Snub)
Key elements of strategy for the United States in the Middle East: Also from the Washington Institute, the following policy paper was written by a group including former national security advisors and diplomats, and seeks to advise the Obama administration’s final two years on Middle East policy. The brief 12-page report opens with the grim assessment that “A struggle over basic identity is likely to plague the region for at least the coming decade and is threatening the state system that we have known in the Middle East.” Some of what the report has to say on American policy toward Egypt is as follows: “In a country like Egypt, where our stake in a stable government is aligned with our deeper strategic needs in the region, our first priority in the near term is not influencing Egypt’s governance … No strategy designed to bolster the state system in the Middle East is possible without a functioning U.S.-Egypt relationship. While not sufficient, little is possible if we do not repair the relationship … There is no state system in the Middle East without Egypt.” (Read)
EGYPT IN THE NEWS
The lead story on Egypt in the foreign press this morning is the confirmation from an unnamed Israeli intelligence source that Egypt is buying the advanced Russian S-300 air defense system, a deal on which we reported at the end of February. “I don’t know what kind of threat Egypt looks at when they decide to buy it, but we don’t see Egypt as the enemy,” the [Israeli] official said, adding that he hoped bilateral relations would continue to improve.” (Read)
Daesh releases video of attacks in Egypt: The video chronicles attacks in North Sinai carried out over the last month, including a car bombing. “You and your soldiers will not have peace until Sharia rules and we open Jerusalem,” says a masked man as he rigs explosive-filled barrels in preparation for the attack. “Before conquering Jerusalem we will kill you.” (Read in the Telegraph, the aforementioned video is embedded on autoplay)
Senior Ikhwan leader and former MP dies in Egyptian prison: Former FJP parliamentarian Farid Ismail died in prison on Wednesday after having suffered a stroke last week. The news is being set against the backdrop of allegations that his death was a result of being denied timely medical attention by prison authorities. Ismail had been arrested in 2013 on charges of inciting violence in Sharkia. (Read)
UNESCO’s Director General Irina Bokova and Minister of Antiquities Mamdouh Eldamaty inaugurated the first Cultural Property Under Threat (CPUT) conference on Wednesday, addressing part the threat posed by jihadists to cultural heritage, calling destruction of such sites by groups like Daesh a “war crime.” (Read in AP)
DIPLOMACY
Prime Minister Ibrahim Mahlab announced that the meetings he had today with a number of French government officials and companies have borne fruit in the form of what he describes as a “joint vision and purpose.” According to the PM this was a preliminary step in achieving concrete measures to boost bilateral trade and cooperation, attract French investments in an effort to strengthening strategic and economic ties. (Read in Arabic) PM Mahlab wrapped up his two-day state visit on Tuesday, which included a meeting with French President Francois Hollande, according to KUNA.
Egypt asks France to shut down pro-Brotherhood satellite channel el-Sharq: “During his meeting in the [French] capital on Tuesday, Mahlab thanked French authorities for closing another Brotherhood-linked channel, Rabaa, which was also transmitted by Eutelsat … On Tuesday Mahlab urged the council to take action against el-Sharq, which he said was ‘no different’ from Rabaa in terms of its ‘orientation and its provocative messages.’ Despite being dropped by the French company last month, Rabaa is still broadcasting online under a different name.” (Read)
OIL & GAS
BG Group’s natural LNG exports from Egypt halted
Al Mal | 12 May 2015
LNG exports from BG Group’s production sites in the Delta have halted, an unnamed source at EGAS said. BG only manages to export very limited gas quantities on a weekly basis, the source added, noting that the quantities do not exceed 100 mcf. BG had to contact its products’ purchasers on international markets to communicate the state of their production from Egypt and let them know that supply shortages are driven by reasons beyond the company’s control. The EGAS source said that all of the IOCs’ gas production is being directed to the domestic market. (Read in Arabic)
Storage facilities in Upper Egypt increased to 14
Al Mal | 12 May 2015
The number of storage facilities in Upper Egypt increased to 14, according to Abu Bakr Ibrahim, the Chairman of GANOPE. The increase precedes plans to expand the transportation network for petroleum products to ensure that demand surges are contained. The oil ministry is now focusing on extending the pipeline network to Upper Egypt and having the construction process completed as soon as possible with GANOPE noting that the project is almost complete. (Read in Arabic)
Western Desert fields’ crude production reaches 400,000 bbl per day
Amwal Al Ghad | 13 May 2015
Crude production from the Western Desert reached 400,000 bbl per day out of Egypt’s total production of 690,000 bbl per day, Khaled El Molla, EGPC’s head said. Digging in deeper layers has helped increase production in these areas. The Western Desert, Rashid, and Borollos remain very promising production areas and will contribute to the build-up of Egypt’s reserves, El Molla added. (Read in Arabic)
BASIC MATERIALS & COMMODITIES
Tata Best Foods to export 500 tonnes of beef to Egypt
Al Borsa | 13 May 2015
Pakistan’s Tata Best Foods will export 500 tonnes of beef to Egypt in the next two months, Al Borsa reported, in an agreement that was signed 18 months ago. Tata Best Foods also exports to Saudi Arabia, Qatar, and other regional countries. (Read in Arabic)
Cemex allocates USD 60 mn to prepare for coal usage
Al Borsa | 12 May 2015
Cemex has allocated USD 60 mn to convert its plants to use coal as an energy input. USD 40 mn will be directed towards preparing the factory and purchasing equipment that is compatible with using coal and USD 20 mn will go towards replacing the factories filters. Cemex expects to receive the first shipment of coal within the next six months. (Read in Arabic)
MANUFACTURING
Unilever Mashreq to expand soap production capacity by 30%, Camay acquisition to be completed by mid-year
Al Borsa | 12 May 2015
Unilever Mashreq is preparing to inject funds to increase its soap production capacity by 30%. The funds will be used to buy new machinery and equipment for its Sixth of October plant to increase the production of its recently acquired brand Camay. Unilever Mashreq acquired Camay earlier this month and said the deal will be completed by mid-year without giving extra details about the deal. (Read in Arabic)
IDA seeks Mahlab’s approval for issuing 12 new cement manufacturing licenses
Al Borsa | 14 May 2015
The Industrial Development Authority (IDA) of Egypt has filed a request to the PM’s office to approve the issuance of 12 new licenses to operate cement manufacturing facilities in the governorates of Sohag, Minya, Qena and Beni Suef. IDA chairman, Ismail Gaber, stated that the move was essential in being able to cope with a projected demand for cement in 2020 of 80 mn tons. As it stands, Egypt’s 22 cement factories have a combined production rate of 50 mn tons. (Read in Arabic)
HEALTHCARE
Multiple Sclerosis treatment now covered by national health insurance
Al Mal | 13 May 2015
Treatment for multiple sclerosis will now be covered under the state’s health insurance plan, after a successful two month pilot program which treated 109 patients, said health minister, Dr. Adel Adawy. The move comes as a result of successful negotiations between the government and the treatment’s distributors to lower the costs of the treatment (which costs upwards of EGP 7,000 per month) by half, allowing it to be covered under the national health insurance plan.(Read in Arabic)
REAL ESTATE & HOUSING
UAE to invest USD 2 bn in Egyptian housing projects -Salman
Daily News Egypt | 12 May 2015
The UAE is set to invest around USD 2 bn in Egyptian housing projects in FY2015/16, investment minister Ashraf Salman said. Salman told DNE that the UAE had pledged to invest in housing and in labour-intensive projects. “The announcement came on the margins of a conference on the safe use of coal,” DNE reported. (Read)
80% of World Bank loan will be directed toward supporting mortgage financing
Amwal Al Ghad | 12 May 2015
80% of the USD 500 mn World Bank loan will be directed towards supporting mortgage financing, the head of the government’s real estate fund May Abdelhamid said. The funds will be split on tranches, Abdelhamid said. She added that the fund is already supporting 75,000 individuals using a EGP 1.4 bn. (Read in Arabic)
TELECOMS & ICT
TE completes the installation of 520 M-SAN units
Al Mal | 13 May 2015
TE has completed the installation of 520 M-SAN units in 1Q2015 to expand connectivity to 500 thousand clients. This is part of TE’s initiative to refurbish the telecommunications infrastructure and replace copper wires with optic-fibre cables. TE project to refurbish its cable infrastructure is expected to cost around EGP 6 bn. The company said 4 mn clients will be connected via optic-fibre cables by the end of 2015. (Read in Arabic)
BANKING & FINANCE
EFSA suggests using covered bonds for real estate financing
Al Ahram | 12 May 2015
Banks and real estate developers should assess to possibility of using covered bonds, EFSA’s Sherif Samy suggested. The covered bonds, Samy notes, are supported by mortgage finance cash flows and differs from securitisation but still offers protection in cases of default. Samy said that the usage of covered bonds would also benefit the EGX, if they are listed. (Read in Arabic)
Banque du Caire to participate in the New Suez Canal project loan
Amwal Al Ghad | 13 May 2015
Banque du Caire allocated USD 100 mn to be used in the bridge loan for the New Suez Canal Project. The Bank’s Chairman said this marks the real beginning of the financing activity targeted this year. He insisted that the domestic banking sector has a huge potential to support national projects. (Read in Arabic)
OTHER BUSINESS NEWS OF NOTE
Construction of the fourth phase of the Cairo’s third metro line begins
Amwal Al Ghad | 13 May 2015
The construction process of the fourth phase for Cairo’s third metro line began in tandem with the ongoing construction for phase three, announced transportation minister Hany Dahy. The minister hope that with the completion of the third line, Cairo Metro would be able to transport six mn passengers every day. Dahy also added that the agreement signed with the AFD will see it refurbish the Alexandria tram completely using French funding. (Read in Arabic)
Egypt, Italy sign aviation deal
Ahram Online | 12 May 2015
“Egypt and Italy signed a deal to improve training for airline pilots and develop aviation regulatory and supervisory activities,” Ahram Online reported. The deal will be financed using a EUR 1.1 mn grant from the EU. The project aims to achieve institutional reform and job restructuring. (Read)
New Valley residents to benefit from New Farafra City reclamation project -minister
Al Borsa | 13 May 2015
Over 50% of New Farafra City’s 10,000 acres of reclaimed land will be allocated to the residents of the New Valley governorate, according to Minister of Agriculture and Land Reclamation Dr. Salah Helal. The remainder of the land will be distributed to residents of nearby governorates, added the minister. The New Farafra City project is part of the government’s plan to reclaim 1 mn acres of land throughout Egypt. (Read in Arabic)
Centamin reports strong first quarter results
Company statement | 13 May 2015
Gold mine operator Centamin Plc, achieved a 55% increase in its core profit for 1Q 2015, according to a company statement. The company attributed this sharp rise to increased gold sales and a decrease in its operational costs, added the source. “The financial performance reflected efficiency improvements of the expanded Sukari operation and a reduction in the fuel price,” Centamin’s revenue reached USD 135.2 mn in 1Q 2015, a 31.6% increase from the same period last year. (Read)
National Roads Project on track for August 2015 completion
Al Borsa | 13 May 2015
Approximately 40% of the 3200 km National Roads Projects has been completed, announced the General Authority for Roads, Bridges and Land Transport. In an effort to complete the road system by August 2015, the authority hired four additional contractors for the project, bring the total number of companies involved in the project to 35, reports Al Borsa. The estimated cost of the project is EGP 36 bn. (Read in Arabic)
EGYPT POLITICS + ECONOMICS
Valuation of public sector companies in preparation for listing to be done in a month -Salman
Al Masry Al Youm | 13 May 2015
Valuation committees will complete assessing 125 government-owned companies in a month’s time ahead of their potential listing on the bourse, Investment Minister Ashraf Salman said. Sixty firms participated in the valuation process that began nine months ago. A senior source at the investment ministry said the companies that are being considered for listing do not include those operating in “strategic” sectors like cement, steel, and spinning and weaving. (Read in Arabic)
REGIONAL
Acting Khalifa of Daesh killed in coalition airstrike: The Iraqi defense ministry published a video (which has since been removed from Youtube) of the strike that supposedly killed the deputy head of the Islamic State, Abu Alaa Al-Afri, reports BBC. The attack comes one month after Al-Afri, a former physics teacher (I thought he looked familiar), assumed the role of acting Caliph after Abu Bakr Al-Baghdadi’s reported incapacitation in April.
ON YOUR WAY OUT
Leading member of Al-Gamaa Al-Islamiya’s Building and Development Party (BDP) arrested on Tuesday: Essam Derbala was arrested in Qena on Tuesday, reportedly for his membership in the banned National Alliance to Support Legitimacy. (Read)
Customs revenues for the 2014/2015 fiscal year have grown 107% to reach EGP 17.9 bn exceeding the projected figure of EGP 16.8 bn, according to Customs Authority figures released on Wednesday. The authority managed to collect EGP 27.3 mn in taxes over that same period, EGP 25 mn of which came from sales taxes, reports Al Mal.
The Spanish Ministry of Finance will help shore-up accounting and audit procedures at the Egyptian Finance Ministry under a cooperation agreement signed recently by the European Union’s delegation in Egypt and Egypt’s Ministry of International Cooperation. (Read in Arabic)
If you lose you fuel subsidy smart card, you’ll be required to pay EGP 25 to replace it, eFinance told Al Borsa.
BY THE NUMBERS
USD CBE auction (last sale Tuesday, 12 May): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Tuesday, 12 May): 7.68 (unchanged from Saturday, 09 May)
EGX30 (Wednesday): 8,526.43 (-1.71%)
Turnover: EGP 520.7 mn (7% below the 90-day average)
WTI: USD 60.17 (-0.55%)
Brent: USD 66.58 (-0.34%)
TASI: 9,672.0 (+0.5%)
ADX: 4,614.4 (+0.4%)
DFM: 4,067.4 (+0.3%)
KSE Weighted Index: 430.6 (-0.3%)
QE: 12,366.9 (+1.0%)
MSM: 6,314.8 (+0.1%)
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