Thursday, 1 December 2016

Are we the only ones shocked its December? Plus: CIB in talks to sell CI Capital


What We’re Tracking Today

We kick off the month of December with a blessedly slow news day, and what news there is focuses largely on IPOs and M&As, suggesting the float of the EGP on 3 November may have finally ended the drought prompted by the FX overhang that has long overshadowed the market.

The uptick in M&A activity (our lawyer friends are looking at a very, very busy month of December) and the run of IPO announcements are among the many reasons why we’re not horrified that the EGP hit a fresh low against the greenback yesterday, falling to a market average yesterday of 17.77 (buy) and 18.16 (sell), per the CBE’s website. That rose to the attention of the Wall Street Journal’s newly acquired, chart-heavy The Daily Shot blog, which notes, “Speaking of African currencies, the Egyptian pound hit a new record low after the free-float. There is trouble ahead for Egypt as inflation is likely to spike in the months ahead. Higher food prices (much of which Egypt imports) could bring back widespread social unrest.”

That’s exactly the risk, as Sudan reminded us yesterday: Sudanese police fired teargas on some 300 people protesting high prices of food and medicine amid ongoing subsidy cuts. But after a two-day interview with one of the nation’s more senior policy makers (we’ll have all the details for you next week), we’re increasingly optimistic the economy is on the right track. The catch is that the moral hazard has transferred from the Central Bank of Egypt to Cabinet. The float of the EGP has created a base on which the Ismail government can build a sustainable economy, and that’s what appears to be happening as they lay the groundwork for welfare reform, continue to build infrastructure, make all the right noises about tax policy stability, and look at what meaningful investment incentives will prompt domestic and foreign investors to pull the trigger. As Capital Economics’ Jason Tuvey noted in remarks to the Associated Press yesterday on the challenges and opportunities ahead: "Egypt has all the ingredients to become a manufacturing hub. To the extent that a weaker pound and economic reforms could spark a move in that direction, we’d certainly see job prospects stem from prospects of growth, and wages as well should pick up."

The stock market isn’t alone in cheering the CBE’s move to allow profit repatriation: The Central Bank of Egypt marked a key milestone in Egypt’s nascent campaign to win foreign direct investment yesterday. As we noted yesterday morning, sources told Bloomberg that the CBE is now allowing commercial banks to sell USD to clients looking to repatriate profits and, as Bloomberg’s Ahmed Feteha and Ahmed Namatalla note, “stocks surged.” But businesses with M&S transactions in the pipeline cheered even louder. Why? As one c-suite executive at a larger manufacturer who has had an M&A transaction with a foreign counterparty sitting on the sidelines since earlier this year told us yesterday, “If my guy can only bring money in, with no guarantee of getting his dividends out, why would he do the deal, even at EGP 25 to the USD?” Feteha and Namatalla are back with a reax piece that also provides some market color from EFG Hermes’ Simon Kitchen.

No rift here: As we move forward, we will need to remember (a) who our friends are and (b) that handouts are corrosive, but real investment is always welcome. In view of the rift with KSA, it’s in that light that we’re pleased to see President Abdelfattah El Sisi will be flying to the UAE today for a two-day visit. The visit follows UAE Crown Prince Mohamed bin Zayed Al Nahyan’s surprise visit to Egypt last month. Notably, the Emiratis invited El Sisi to visit over their UAE National Day weekend; the president is expected to participate in national day events tomorrow.

Shoukry, Kerry to sign pact restricting import of Egyptian artifacts: Foreign Minister Sameh Shoukry and US Secretary of State John Kerry signed late yesterday an agreement designed to make it more difficult to import Egyptian artifacts to the US. The pact, billed by the State Department as the first cultural property protection agreement the US has signed with a MENA country, will see the US “impose import restrictions on archaeological material representing Egypt’s cultural heritage dating from 5200 B.C. through 1517 A.D. Restrictions are intended to reduce the incentive for pillage and trafficking,” State said in a statement yesterday.

Shoukry also met yesterday with US vice-president-elect Mike Pence, Al Masry Al Youm reports.

On The Horizon

It’s the last gasp of 2016 conference season:

  • The Electricx exhibition, Cairo International Convention Centre on 04-06 December.
  • Slovenian President and business delegation visit Egypt on 05-06 December.
  • Building a Sustainable Future for Solar in Egypt event, Sonesta Hotel, Cairo on 06 December.
  • Citi’s 2016 Global Healthcare Conference, London, UK on 07-08 December.

It’s still up in the air whether the Prophet’s Birthday (set for 12 December) is a national holiday or merely an observance, but we do know that this coming Monday is PMI day and that the Central Bank of Egypt’s Monetary Policy Committee will hold its last meeting of 2016 on Thursday, 29 December.

Enterprise+: Last Night’s Talk Shows

The ever-sardonic Amr Adib said the government might as well shut down schools in Egypt considering the state they’re in (watch, runtime: 5:38). Adib showcased the Trends in International Maths and Science Study (TIMSS) global rankings, which placed Egypt among the bottom two countries in terms of math and science education, prompting Adib to call Egypt’s schools “a waste of money.” The host also dug into how difficult life has become for publishers of school books after the float of the EGP (watch, runtime: 3:43).

In between calls for donations for Abu El Reesh Hospital (watch, runtime: 5:15), Adib also mused aloud about how the Ismail government will cope the prospect of higher oil prices after yesterday’s OPEC agreement, saying the state budget is based on oil at USD 40 per bbl (watch, runtime: 3:08).

Over on CBC, Momken’s Reham Ibrahim questioned MP Tarek El Kholy, who phoned in from London where he is part of a parliamentary delegation visiting the UK to lobby for restoring flights to Sharm El Sheikh. “We felt was that the decision to continue holding back flights to Sharm was politically motivated and it had no relation with security in Egypt’s airports,” he said (watch the full episode here, runtime: 1:54:38). El Kholy had earlier called in to Al Hayah Al Youm, where he said the Ikhwan was actively lobbying officials in London (watch, runtime: 5:27).
Ibrahim Eissa allocated his weekly Wednesday debate to discuss the future of print journalism in Egypt (watch, runtime: 16:50), while Lamees Al Hadidy was off again last night.

Speed Round

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CIB is in advanced talks with a group of domestic and Gulf Cooperation Council investors to sell 70-80% of its stake in investment banking arm CI Capital, the bank announced in a statement. CIB said it would continue to hold whatever shares in Egypt’s second-largest investment bank it does not offload; Al Borsa reports that current CI Capital management is expected to stay on board. No individual backer of the transaction is expected to take a stake of more than 10% in CI, which the acquiring parties apparently may consider listing on the EGX in 2017, according to reports in the domestic press.

Naguib Sawiris is not among the dozen or more investors reportedly backing the transaction. Sawiris had tried to acquire CI Capital from CIB in a nearly EGP 1 bn buyout earlier this year, but failed to obtain regulatory approval from the Egyptian Financial Supervisory Authority. Among those the domestic press says this morning are backing the latest bid for CI: Arafa Group’s Alaa Arafa, prominent businessman (and Gamal Mubarak’s father-in-law) Mahmoud El Gammal, Tiba Science Academy’s Saddiq Afifi (all cited in this piece), Al Salam Hospital’s Fahd Khater, Compass Capital’s Ayman Abbas and Shamel Aboul Fadl, as well as the Zahran Group. The transaction could close as early as today, media reports suggest. CIB is reportedly being advised by Zaki Hashem & Partners, while the buyers are being counseled by Al-Tamimi & Company.

MM Group for Industry and International Trade will float 30%-40% of its shares on the EGX in 1Q2017, sources told Al Mal. The company had said in June that it would offer up to 25% of its shares. MM Group listed on the EGX in August. BDO is conducting the fair value, slated to be completed before year-end. Beltone Financial is managing the transaction. MM Group’s website identifies the company as an agent for Vodafone Egypt and Samsung smartphones. It is also a local agent for Jaguar, Land Rover, Ferrari, Maserati, and Bentley, sells Ukrainian tractors, and manufactures everything from packaging and corrugated boxes to doors and windows.

Also on the IPO pipeline: Egyptian Financial and Industrial Company (EFIC) subsidiary Suez Fertilizers is expected to list on the EGX within three months, EFIC chairman said, according to Al Borsa. The offering of 40% of the company’s shares will take place six months after listing. EFIC will meet today with Pharos Holding and Misr Financial Investments Company who are managing the offering to start valuation procedures, which we noted in September would be at EGP 1 bn.

The UAE’s Gulf Capital is looking to sell its stake in medical diagnostic imaging chain TechnoScan by late-2017 or early-2018, sources told Reuters. The move comes amidst a wider strategy of regional exits over the next two years as market sentiment and regional economy improves, CEO Karim El Solh said. Gulf Capital acquired a 75% stake in TechnoScan, which Reuters incorrectly identifies as the largest imaging center chain in the Middle East; last we checked, Hend El Sherbini’s Integrated Diagnostics Holdings was substantially larger.

The Central Bank of Egypt has reportedly recommended that all bank activities be exempt from the value-added tax (VAT). The CBE reportedly offered its view in response to inquiries by the Finance Ministry, a government source told Al Borsa. The CBE feels that it is incorrect to distinguish between banking services and what the Finance Ministry classifies as ‘non-banking services,’ which are not VAT-exempt. These include fees on safety deposit boxes and trustee services. The matter has been a contention point between banks and the Finance Ministry.

The Finance Ministry’s inquiries come as it is still drafting the VAT’s executive regulations, said the official. The reason behind the almost two-month delay: accountants and lawyers. The ministry plans to meet with them next week with a finalized draft of the regs and hopes to see the whole procedure completed by the end of next week.

Number of days the executive regulations for the value-added tax act are overdue: 53. That’s one month and 22 days.

New, revised deadline for the executive regulations for the value- added tax: Next week, insha’Allah.

Pharma lobbying for additional VAT exemptions, customs breaks? The House of Representatives could make all production inputs for the pharma industry exempt from value-added tax, Al Borsa reports. Active ingredients used in production are already exempt from the VAT under the new regulations, and the House Committee on health wants to discuss with cabinet extending the exemption to include non-active substances and packaging material. MPs are also discussing “discounted utility fees” (read: energy subsidies) and customs breaks for manufacturers in the industry. Pharma companies have been in uproar lately over the state’s refusal to allow them to reprice in light of their mounting costs following the EGP’s devaluation.

The government officially raised the monthly allowance on ration cards to EGP 21 from EGP 18 per person today, Al Borsa reports. Today also marks the beginning of the three-month Kramer snitching purge called for by Supply Minister Mohamed Ali El Sheikh, AMAY reports. The Kramer purge is now being touted as a cornerstone policy of the Ismail government’s reform agenda. New detail on the criteria for the new subsidy system was revealed by Ahram Gate on Tuesday: Egyptians earning less than EGP 2,500 per month would receive a full commodity ration provided by the government. Those earning less than EGP 3,500 would receive a 75% ration; individuals earning under EGP 4,500 would be eligible for 25% of the maximum subsidy; and food subsidies will be eliminated for those making more than EGP 4,500.

Peculiar is that Ahram Gate also claims the government is planning to move to a progressive tax system. Finance Minister Amr El Garhy poured cold water on that idea earlier this week when the cabinet econ team sat for an interview with Youm7, telling the newspaper that tax policy stability is more important than a new source of tax revenue. Even the House Economics Committee is split on the notion.

The House of Representatives’ Housing Committee is planning legislation that would see the government reprice contracts with developers on real estate projects signed prior to the float, Al Borsa reports. The committee has not yet settled on a rate, but is leaning towards a 15% increase in the contracts’ value, said the committee’s legal counsel Khalid Abdel Aziz. He added that the committee is still exploring whether to amend the Auctions and Tenders Act or draft a new law. Naturally the law was welcomed by the Contractors Association of Egypt, which not only lobbied hard for the law, but is apparently joining in drafting the new legislation, said the association’s head Hassan Abdel Aziz. As we noted last week, the Ismail cabinet has apparently approved forming a committee to look into repricing government contracts following the float, heeding multiple calls by varying industries.

The Oil Ministry has postponed commissioning a third FSRU, saying it has no need to increase natural gas imports for 2017, Oil Minister Tarek El Molla told Al Borsa. The FSRU was scheduled to arrive at the SUMED port in Ain Al Sokhna in June 2017. We reported earlier this week that EGAS has locked-in its 2017 gas needs through a “mega tender” that gave it 96 cargoes for delivery across 2017 and 2018 with the option to buy 12 additional cargoes this coming year.

Only three cement production licenses awarded: The Industrial Development Authority sold three cement licenses for a total sum of EGP 500 mn at an auction yesterday, according to Trade Minister Tarek Kabil. The licenses to build new production facilities were sold for EGP 160.3 mn each and are expected to pull in investments worth EGP 10 bn, Kabil added in a statement. South Valley Cement beat out Beni Suef Cement in the bid over the permit for Beni Suef, while El Sewedy Cement acquired a permit for Ain El Sokhna, and Cement Egypt won the rights for Sohag.

EgyptAir has passed its International Civil Aviation Organization inspection with a score 20% higher than the global average, Al Borsa reported. In other tourism news: The number of visitors arriving in Egypt rose 7% month-on-month in October to 506,200 tourists compared to September. according to CAPMAS figures cited by Al Shorouk. October’s arrivals figure was more than 44% below the same number for October 2015. Western Europeans were the largest block of visitors, accounting for 36% of arrivals in October 2016.

The Ismail cabinet resumed its weekly meeting, which started on Tuesday, where discussions primarily focused on the new investment law. The Prime Minister said the cabinet will receive the final draft of the law for review on 14 December, according to Al Ahram. The cabinet also approved the Labor Act on Tuesday, as we noted yesterday. Other decisions from Wednesday’s meeting include:

  • Ratifying the COP21 Paris Climate Change agreement, which Egypt had signed in April;
  • Approving regulations to begin tendering land with utilities for industry in Upper Egypt for free as per the Supreme Investment Council’s package of incentives;
  • Sanctioning a USD 431.8 mn agreement with the Japan International Cooperation Agency to finance the second phase of the Grand Egyptian Museum and a USD 359.1 mn agreement to develop the power sector;
  • Approving a EUR 1 mn financing agreement with the French Development Agency to fund feasibility studies on various development projects;
  • Ratifying amendments to the Eminent Domain Act;
  • Approving a request from the Electricity Holding Company to cut stamp taxes and fees on their contracts with Siemens to build three 14.4 GW electrical power stations.


Arabian Cement Company reported a 36% y-o-y decline in net profit after for 9M2016, which stood at EGP 157.6 mn, according to the company’s consolidated financial statements.

Among the handful of international news stories worth noting this morning if you should have a moment:

  • In what’s being billed as the first such pact since 2001, OPEC and Russia surprised us yesterday by agreeing to production cuts. Oil prices surged more than 9 percent to break above USD 50 per barrel. Reuters and Bloomberg have coverage, and if you have five extra minutes this morning, go and re-read Goldman Sachs’ argument about why higher oil prices are good for the global economy (even though they’ll make our subsidy rationalization program a bit more challenging — and urgent — here at home).
  • Donald Trump’s nominee for treasury secretary gets a scouring from the Wall Street Journal and the Financial Times today. All look at his turnaround of IndyMac, wondering whether the “defining deal of his career” could come back to haunt him: “He knew that the government needed to sell the failed bank—and he played hardball.” And that’s been a crime since when, exactly? The New York Times notes that “Trump’s economic cabinet picks signal embrace of Wall St. elite.”
  • Speaking of Trump: The US president-elect took to Tweeter yesterday to pledge he will step away from his personal businesses to focus exclusively on the presidency, Reuters reports.
  • Coke is it: “Coca-Cola and its Palestinian bottling franchisee have opened what the Financial Times is calling “the US beverage group’s first production plant in the Gaza Strip.” The Times of Israel says the USD 20 mn investment will create 270 direct jobs. The story has also made the WSJ.

CORRECTION- Sameem Capital has raised its stake in Prime Holding, not Naeem Holding as reported by the domestic press, writes Sameem Capital Managing Director Ahmed Ali Abdelrahman


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Egypt in the News

It’s also a slow morning for Egypt in the international press (not that we’re complaining), with perhaps the most notable piece being Patrick Werr’s piece for the UAE’s The National on the so-called automotive directive, which offers domestic auto assemblers protection from what they have called “unfair” Turkish, Moroccan and European Union imports in return for their going further up the value chain into manufacturing. Werr argues against the measure, which he said will ultimately “benefit a tiny group of businessmen at the expense of consumers and the country as a whole,” declaring that, “this is classic infant industry theory, a concept that has long been discredited, no less than in Egypt’s very own automobile industry.”

Elsewhere: Oren Kessler’s look at “Egypt’s Unlikely Ardor for Trump” in Foreign Affairs (registration required) is certainly worth a read. Kessler argues that Hillary Clinton was never the pro-Ikhwan enemy of Egypt she was made out to be but, at the end of the day, notes: “For Cairo, Clinton would have brought a continuation—or even exacerbation—of Obama-era bad blood. But Trump’s apparent positions, when taken together, made him a near-ideal candidate. U.S. policymakers seeking smoother diplomatic, security, and strategic ties with Egypt can thus take heart. Those hoping the White House will continue to pressure its ally on civil rights and the rule of law may well be in for disappointment.”

Also notable this morning: The defense and foreign affairs editor of London’s Telegraph takes to the Wall Street Journal to write a guest op-ed on “Britain’s Muslim Brotherhood Whitewash,” one of the more refreshing looks at the story we’ve seen in the Western press. Elsewhere in the Journal, we learn that the former Egyptian consulate in San Francisco is on the market for USD 22 mn and is “one of the city’s most expensive residential properties.” Egypt bought the property back in the 1960. Tarek Amer looks forward to your deposit, ladies and gents of the foreign service. (Friends of served at the consulate: May we feel nostalgic on your behalf?)

Worth Watching

CNN’s Inside the Middle East takes notice of the burgeoning Egyptian independent movie scene. As Egyptian independent films and filmmakers make waves at Cannes and in Hollywood, the program posits that the movement may be a resurgence of Egypt’s film heritage and a new era of dominance in the region’s cultural landscape (runtime: 8:15).

Diplomacy + Foreign Trade

President Abdelfattah El Sisi met with a delegation of South Korean officials yesterday headed by the country’s Minister of Land, Infrastructure and Transport Kang Hoin. Talks focused on economic cooperation and investment. In related news, the head of state-run Arab Organization for Industrialization (AOI) met with reps from Korea’s Hyundai Rotem, which is bidding to supply train cars for phases three and four of the Cairo Metro. Hyundai Rotem has previously provided cars (some of them locally manufactured) to the Cairo Metro system.

China explores Suez Canal econ zone opportunities: A Chinese business delegation headed by China Economic Cooperation Center Vice President Wu Boacai visited the SCZone to explore investment opportunities, Al Masry Al Youm reported. The delegation is set to take part in meetings with the Egyptian Businessmen’s Association today to discuss opportunities, Youm7 reports.


Only four of nine solar power providers with PPA to make it through to FiT’s phase 1

Only four out of the nine companies that signed power-purchase agreements with the Egyptian Electricity Transmission Co. (EETC) for the FiT’s phase one for solar energy will make it to the final lineup, an unnamed Electricity Ministry official tells Al Borsa. The EETC postponed the announcement to 4 January from late November / early December to allow itself more time to review and verify all the offers on the table. The nine companies — identified as Infinity Solar, Alef Solar, Scatec Solar, FAS Energy, Arc Solar, Mage Solar, Winergy, Arinna, and CTIP Oil and Gas — had signed the PPA last October.

Electricity Ministry completes first phase of agreements with State Grid

The Electricity Ministry concluded initial agreements with China’s State Grid Corporation to build 1,210 km of overhead power lines and towers, Electricity Minister Mohamed Shaker told Al Mal. The grid will connect both the three Siemens power plants and facilities commissioned under the 2015 emergency generation plan, he said. The USD 750 mn project is being financed by Chinese lenders under the EPC-pus-finance system.

Electricity Holding to form new companies to manage Siemens power plants, plans to IPO them

The Egyptian Electricity Holding Company (EEHC) will form four new companies with EGP 180 bn capital, three companies to run Siemens power plants and another to run “projects of the urgent strategy”, sources told Al Borsa. We noted that while the story quotes “sources” as saying the companies will go public by the end of next year, Prime Minister Sherif Ismail said earlier this week that no utility company would be included in the first wave of the state IPO program. Al Mal has more on the story.

Nooros production up to 870 mcf/d

Production from Eni’s Nooros gas field increased to 870 mcf/d, the Oil ministry said, state news agency MENA reported, according to Al Shorouk. This is expected to reach 900 mcf/d soon, a benchmark the ministry said last week was already reached.

Electricity Ministry issues financial guarantee for 250 MW wind power station

The Electricity Ministry has issued a financial guarantee for a 250 MW wind power station in the Gulf of Suez, which will be co-developed by Toyota, Orascom, and GD France, Al Borsa reports. The government should be signing the contract this January and will be paying 4.7 cents per KW for 25 years under the terms of the agreement, according to the head of the feed-in tariff unit at the Egyptian Electricity Transmission Company.

Real Estate + Housing

SODIC looking to develop 410 feddans in Sheikh Zayed under second phase of PPP with NUCA

Leading real estate developer SODIC is looking to develop an area of 410 feddans in Sheikh Zayed in partnership with the New Urban Communities Authority’s (NUCA) under phase two of NUCA’s public-private partnership program, Managing Director Magued Sherif told Al Borsa. Other bidders for the 410 feddan land plot include Emaar Egypt, Badr El Din Real Estate, and Al Offoq Group, the newspaper reports.

Telecoms + ICT

Mawarid Technology investing USD 100 mn in domestic market in 2017

The UAE’s Mawarid Technology are investing around USD 100 mn into the domestic market in 2017 as part of the company’s expansion plan into Egypt, Mawarid GM Habib Halabi told Al Borsa. The network security and IT solutions specialist is targeting PPP contracts in the security infrastructure sector, Halabi added. Mawarid was established early this year through the partnership of Falcon Eye Technology, Tacme Handcrafted IT Solutions, and Quicknet.

Automotive + Transportation

Auto-Feeder Industries Holding Company not happening?

Eleven companies said to be in talks to merge into an “Automotive Feeder Industries Holding Company” have broken up, Federation of Egyptian Industries’ Automotive Feeder Industries Division board member Raafat El-Hanagiry told Al Mal. Each company wants to export individually, which defies the point of having a Holding company, he said. We had reported earlier this week that the Egyptian Auto Feeders Association is looking into partnering with manufacturers aiming at increasing exports.

Banking + Finance

Housing & Development Bank might acquire FX company

The Housing and Development Bank is studying a proposal to acquire an FX company, the bank said in a regulatory filing. We had reported last month the NBE received CBE approval to open an FX bureau subsidiary next year.

Other Business News of Note

DHL to spend EGP 700 on fleet, facilities over the next decade.

DHL will spend EGP 700 mn in Egypt over the next 10 years to expand its fleet and branch nework and invest in its new building at Cairo Airport, Country Manager Ahmed Elfangary told Al Borsa. The company is studying price increases following fuel price hikes.

Bahgat Group to invest USD 230 mn in Tunisia?

Egyptian conglomerate Bahgat Group apparently is looking to invest USD 230 mn in developing an industrial zone in Tunisia, a company official tells Al Mal at the sidelines of the Tunisia 2020 economic conference (apparently Tunisia’s version of the Egyptian Economic Development Conference). The company reportedly pitched Tunisia’s Industry Minister its offer, feasibility study and development plan.

Did Sawiris visit North Korea this week?

North Korean news outlet NK News speculated that Naguib Sawiris may have landed in Pyongyang on Monday to meet with senior officials over the fate of OTMT’s investments in the country’s internet service provider Koryolink — a story that has since been pulled offline. NK News apparently tracked (not creepy at all) the same jet Sawiris used to fly to Australia on Sunday, saying it landed in North Korea. Local press is running wild with the story. OTMT has not been able to repatriate its revenues from the DPRK, with Al Borsa guessing that Sawiris was there to negotiate how to channel OTMT’s investments into other projects in the country.

Legislation + Policy

Supreme Media Council has oversight on news organization’s finances

More detail on the Press and Media Act are out in Al Masry Al Youm on the Supreme Media Council: It will have the authority to monitor the finances of media organizations, set standards and practices for the industry (sorry Consumer Protection Authority’s Atef “Smiley Face” Yacoub), and supervise licensing and permits.

Egypt Politics + Economics

FX bureaus division wants banks to regulate exchange rate

A float is a dish best served cold: After holding the FX market hostage prior to the float of the EGP, FX bureaus are now crying that they are no longer getting a fair share of the market. The CBE should allow for FX bureaus some margin as the banks are leaving nothing on the table, the head of the FX bureaus division of the Federation of Egyptian Chambers of Commerce Mohamed Al Abyad told AMAY. He suggested that the CBE step in and regulate the exchange rate, revealing what appears to be something short of a full grasp on the point of a free float

Military court sentences MB supreme guide and bureau members to 10 years in maximum security

The Muslim Brotherhood’s supreme guide, Mohammed Badie, and guidance bureau members Mohamed El Beltagui, Mahmoud Wahdan, and Safwat Hegazy were sentenced to 10 years in a maximum security prison, the Ismaileya Military Court ruled on Wednesday. Charges reportedly include inciting violence, destroying public property, and resisting authority during protests in Ismaileya in August 2013 that resulted in the death of 10 people. About 300 others implicated in the case also received sentences.

On Your Way Out

Need to escape for the kids’ winter break? Emirates Airlines are offering Egyptians a 40% discounts on tickets purchased between 30 November and 4 December for flights between 30 November 2016 and 31 March 2017, Al Mal reported. The discounts run on 12 destinations including Dubai, Kuala Lumpur, Bangkok, and Hong Kong.

The markets yesterday

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EGP / USD CBE market average: Buy 17.75 | Sell 18.15
EGP / USD at CIB: Buy 17.6 | Sell 17.9
EGP / USD at NBE: Buy 17.65 | Sell 17.9

EGX30 (Wednesday): 11,453.25 (+2.63%)
Turnover: EGP 1.775 bn (308% above the 90-day average)
EGX 30 year-to-date: +63.47%

Foreigners: Net Long | EGP + 181.0 mn
Regional: Net Short | EGP – 79.3 mn
Domestic: Net Short | EGP – 101.7 mn

Retail: 69/9% of total trades | 67.6% of buyers | 72.1% of sellers
Institutions: 30.1% of total trades | 32.4% of buyers | 27.9% of sellers

Foreign: 17.1% of total | 22.2% of buyers | 12.0% of sellers
Regional: 12.9% of total | 10.6% of buyers | 15.1% of sellers
Domestic: 70.0% of total | 67.2% of buyers | 72.9% of sellers

WTI: USD 49.51 (+0.14%)
Brent: USD 50.47 (+8.82%)
Natural Gas (Nymex, futures prices) USD 3.34 MMBtu, (-0.36, January 2017 contract)
Gold: USD 1,171.30 / troy ounce (-0.22%)<br
TASI: 7,000.2 (+1.5%) (YTD: +1.3%)
ADX: 4,308.8 (+1.1%) (YTD: +0.0%)
DFM: 3,360.9 (+0.8%) (YTD: +6.7%)
KSE Weighted Index: 367.1 (-0.2%) (YTD: -3.8%)
QE: 9,793.8 (+1.6%) (YTD: -6.1%)
MSM: 5,487.7 (+0.1%) (YTD: +1.5%)
BB: 1,174.1 (-0.3%) (YTD: -3.4%)

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28-01 November-December (Tuesday-Thursday): 2nd High-level meeting of the Global Partnership for Effective Development Cooperation, Nairobi, Kenya.

29-30 November (Tuesday-Wednesday): Citi’s Global Consumer Conference, London, UK.

30 November (Wednesday): OPEC’s 171st ordinary meeting, Vienna, Austria.

30 November (Wednesday): Industrial Development Authority cement auction (unconfirmed report)

November (TBD): Delegation of German companies in the renewable energy sector due to visit to discuss investment opportunities.

03-05 December (Saturday-Monday): African Investments and Business Forum, Algiers, Algeria.

04-06 December (Sunday-Tuesday): Solar-Tec exhibition, Cairo International Convention Centre.

04-06 December (Sunday-Tuesday): Electricx exhibition, Cairo International Convention Centre.

05-06 December (Monday-Tuesday): Slovenian President and business delegation visit Egypt.

6 December (Tuesday): Building a Sustainable Future for Solar in Egypt event, Sonesta Hotel, Cairo.

07-08 December: Citi’s 2016 Global Healthcare Conference, London, UK.

09-11 December (Friday-Sunday): RiseUp Summit, Downtown Cairo.

10-13 December (Saturday-Tuesday): Projex Africa and MS Marmomacc + Samoter Africa, Cairo International Convention Centre.

11 December (Sunday): Prophet Muhammad’s Birthday (national holiday; date to be confirmed).

11-13 December (Sunday-Tuesday): The Middle East Fire, Security & Safety Exhibition and Conference (MEFSEC), Cairo International Convention Centre, Cairo.

12 December (Monday): African Development Bank votes on issuing second tranche of USD 1.5 bn loan.

13 December (Tuesday): Business News’ Third Annual Egypt Automotive Summit, Semiramis InterContinental, Cairo.

13 December (Tuesday): Amwal Al Ghad’s top 50 most influential women in Egypt women forum, Four Seasons Nile Plaza Hotel, Cairo.

29 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meets to review rates.

January: Jordanian trade delegation to visit. Date TBD.

14-16 February 2017 (Tuesday-Thursday): Egypt Petroleum Show 2017 (EGYPS), CIEC, Cairo

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