Monday, 6 March 2017

Fresh Prince is in town

TL;DR

What We’re Tracking Today

The EFG Hermes One on One Conference kicks off today in Dubai with 510 investors from 260 financial institutions holding USD 10 tn in assets under management. 147 listed companies from Africa, the Middle East, and Southeast Asia will be represented at the conference. Attendees will also vote live on the EFG Hermes Consensus, a live poll of investor sentiment toward emerging and frontier markets as part of the conference, which takes place between 6 to 8 March. The opening session will have keynote speakers including Investment and International Cooperation Minister Sahar Nasr and Emaar Properties Chairman Mohamed Alabbar. The event’s agenda can be found here.

What did Merkel really say about the automotive directive? The folks in the local press over-played German Chancellor Angela Merkel’s remarks this past weekend about the automotive directive, a package of measures designed to give incentives to local automotive assemblers to go further up the value chain into manufacturing. A very senior industry insider present for Merkel’s remarks tells us, "What the Chancellor said was that she expected that any measures taken would be fully compliant with Egypt’s obligations under existing EU-Egypt trade agreements. That was it — just a few words." The incentives package would see the introduction of a new tax on automobiles from all countries of origin, says the insider, who has knowledge of the text now before the House of Representatives’ Industry Committee. As such, it would not contravene any existing trade agreement.

Expect to hear plenty of chatter this week on the Investment Act. Today, central bank Governor Tarek Amer and representatives from the Finance Ministry are expected to speak before the House Economic Committee on the bill’s investment incentives, private free trade zones, and profit repatriation for foreign companies. Later in the week, the committee plans to hold hearings with business associations on the Investment Act, before concluding their talks on the bill next week. Committee member Mohamed Badrawy tells Al Borsa that the committee plans to push for expanding the role of the General Authority for Free Zones and Investment to tender land — in effect, beefing up the failed one-stop-shop policy. We have yet to hear how this poorly implemented (and much derided) feature of the old act does not conflict existing legislation empowering other government bodies to privatize land under their purview.

Following the EFG Hermes conference, Minister Sahar Nasr is expected to sit down with the Egyptian Capital Markets Association (ECMA) and other associations this Thursday to discuss bill. The meeting will also look into the IPOs of state-owned companies, including Banque du Caire, and amendments to the Capital Markets Law, Al Mal reports.

You might want to recheck your travel plans to Amreeka: US President Donald Trump could be signing a new executive order for a travel ban to the US for citizens of certain countries today, Politico reports. The report, which cites “senior government officials familiar with the matter” does not make it clear “how significant the changes to the current order will be or whether the White House will continue a court fight over its old order.”

On The Horizon

The government will discuss the budget for FY2017-18 in two weeks’ time, Prime Minister Sherif Ismail said, according to Al Mal. Ismail says the draft budget should be ready by the end of the week and will be reviewed by the cabinet in the following meeting.

Al Borsa has apparently received confirmation that the Natural Gas Act will be voted on by the House’s general assembly at the end of the month from House Energy Committee member Hamada Ghallab.

A World Bank delegation is due in Cairo in the first half of March to evaluate the economic reforms as Egypt anticipates receiving a second tranche of the USD 3 bn development loan sometime soon.

Enterprise+: Last Night’s Talk Shows

Will Smith’s arrival in Cairo expectedly dominated the airwaves last night, with the talking heads joining the rest of Egypt in losing their minds over the Fresh Prince of Bel Air’s visit to Om El Donia.

But before we show Smith some groupie love, Yahduth Fi Masr’s Amer interviewed Siemens AG CEO Joe Kaeser, who attributed the speedy completion of the project to President Abdel Fattah El Sisi, who insisted on the shortened timeframe. “We would normally finish working on such large-scale projects in 24-30 months, but we finished it in 18 months.” The Siemens chief also said that the company installed 400 MW of the plants’ combined capacity on its own dime.

Amer spoke to Walid El Batouty, an advisor to the Tourism Minister, who said the ministry was notified 45 days ago that an American actor would visit Egypt, but only found out that the actor in question was Will Smith on Saturday. El Batouty said that Zahi Hawas — who is not one to miss an opportunity to be in the spotlight — joined Smith at the Pyramids. Smith reportedly asked El Batouty, whom he met a TIME magazine event, to share pictures of his visit with the media “because he wants to support tourism to Egypt,” and promised to return to Egypt for a longer visit.

Hona Al Assema’s Lamees Al Hadidi fawned over Smith’s visit during a call-in with Hawas. According to Hawas, he received a call from a Dubai-based agency 10 days ago informing him that Smith would be visiting Egypt and wanted to meet both Hawas and Egyptian singer Mohamed Mounir. Smith unfortunately didn’t get to meet El King, who “just got back from Germany, where he was undergoing surgery” (watch, runtime: 5:32).

Lamees then returned to her customary topic of prices, with Supply Minister Ali El Moselhy phoning in to stress that the state is against imposing price controls, and said that the ministry sat down with sugar producers, traders, and distributors to talk prices. “We signed an agreement to reduce sugar prices to EGP 10.5 per kilo, effective after 15 days,” he said. Next on El Moselhy’s to-do list: Rice, cooking oil, and wheat (watch, runtime 9:57).

Carbon Holdings CEO Basil El Baz gave Al Hadidi the low-down on Investment and International Cooperation Minister Sahar Nasr’s meeting with some 40 Egyptian investors yesterday to address obstacles they face. According to El Baz, the outcomes of the meeting included an agreement to hold a meeting on a bimonthly basis, while Nasr will hold industry-specific meetings with investors each month (watch, runtime: 3:23).

Kol Youm’s Amr Adib piled praise on Nasr for her meeting with investors, likening the minister’s paying heed to investors’ needs to his local grocer giving him special attention to entice him into buying more cheese and feseekh (wow, watch, runtime 5:18).

Speaking to a Kol Youm reporter, Nasr said that the attendees discussed how to reduce bureaucracy by authorizing governmental employees to resolve investors’ issues, saying that relying on the Investment Act “is not enough” (watch, runtime 2:29).

Speed Round

Speed Round is presented in association with

Investors are again assessing Egypt’s prospects positively, John Sfakianakis writes for Bloomberg. By floating the EGP and securing financing from the IMF, “Egypt made the right decision,” he says. Sfakianakis notes the recent appreciation of the EGP “has been faster than most expected, pointing to a more balanced and efficient market” and “external flows are helping instill stability in the foreign exchange market.” He expects exports and tourism to get a boost from the cheaper currency but is concerned about the inflationary effects as well as the increases in cost of capital following the CBE rate hikes. Manufacturing will also be a key source for job creation and Sfakianakis says a shift towards more local content will reduce reliance on intermediate imports, “produce better-paying jobs and develop a sustainable production chain.”

Sfakianakis’ report came despite business conditions for Egypt’s non-oil private sector continuing on a downward path in February, with the Emirates NBD PMI compiled by Markit registering 46.7. The silver lining in the report is that the contraction, while ongoing for the seventeenth month in a row, was the least severe since August and the PMI reading increased from 43.3 in January. Still, February’s downturn was led by sharp declines in both output and new work but with softening contraction rates and the rate of job reduction was the slowest in a year. Emirates NBD Head of Research Tim Fox commented: “the headline index rose to its highest level in six months. New export orders were only marginally lower than in January, signaling improving external demand, and the rate of decline in output was slower last month. Inflationary pressures remain high, but the rate of input price inflation eased markedly in February. Overall, there are signs of stabilization in the non-oil private sector.” Overall, the report notes that “the degree of optimism among Egyptian firms improved to an eight-month high. Companies expect market conditions to improve, thereby boosting output over the coming year.”

… Bloomberg’s Ahmed Feteha says the PMI reading is a sign that the economy may be recovering, pointing to the new orders sub-index rising to 44 from 39.2. The reading suggests “that the recent devaluation of the Egyptian pound is already having a positive impact on external demand, and this should continue to improve in the coming months.”

On that, the Trade and Industry Ministry announced that Egypt’s trade deficit fell by 44% y-o-y in January to USD 1.96 bn. Ahram Online notes that non-petroleum exports increased by 25% in January to USD 1.6 bn from USD 1.32 bn a year earlier, while imports decreased by 25% from USD 4.82 bn to USD 3.62 bn.

Investment and International Cooperation Minister Sahar Nasr is targeting USD 22 bn in financing for the private sector from international financing institutions over the next three years, she told reporters on Sunday, according to Al Borsa. As we noted last week, Nasr is planning to meet with the World Bank Group’s delegation this month, presumably to resume talks on USD 400 mn in funding for labor-intensive projects and SME development. Her statements came at the signing of four agreements between the Egyptian Financial Supervisory Authority and the General Authority for Investments and Free Zones to facilitate establishing new companies.

The EUR 238 mn contract signed with Siemens for six power transmission stations was 85% financed by foreign loans led by BNP Paribas as Coordinating MLA and Facility Agent and was closed in November. The loan benefited from a sovereign guarantee by the Finance Ministry and insurance by Germany’s state-owned Export Credit Agency (ECA) Euler Hermes. Youssef Beshay, senior banker at BNP Paribas, tells us that tapping ECA financing enabled the Egyptian Electricity Transmission Company as a borrower to “access long-term foreign funding at very low cost relative to Egypt’s sovereign credit rating.” He says that this was not just limited to energy products, but also used in the purchase of the Rafale jets from France and in financing the expansion of the MIDOR refinery. ECAs have been used as funding vehicles from the EU to Egypt for major projects. ECA-backed funding is particularly vital and an “unnoticed source of international support and foreign liquidity to Egypt,” Beshay says. This enabled the government to procure major infrastructure projects on fast-track basis with competitive and long-term funding.

EGX boss Omran granted powers to suspend brokers for up to a month: The EGX board approved on Sunday granting EGX Chairman Mohamed Omran the power to suspend brokers suspected of market manipulation for up to one month, Omran tells Al Shorouk. Omran’s justification was that suspending trading alone would not be enough and was not efficient. He added that those suspended could file grievances to the Egyptian Financial Supervisory Authority (EFSA), which would then investigate the matter. Omran threw cold water on questions that this had anything to do with the Beltone stock manipulation saga, stating that the move was part of a wider effort to curb market manipulation and not in response to a single incident. His statement, coming only a week after EFSA filed a case against Beltone shareholders with the Administrative Court and almost a year of suspending trades on Beltone shares, needs to be a little more convincing.

MOVES- Abbas Fayed was named Bank Audi Egypt’s new Chief Executive Officer on Sunday, according to Al Borsa. Fayed had been the deputy chairman of the bank since October 2014 and prior to that had occupied various positions in Banque Misr, where he eventually reached the post of deputy chairman.

**Earnings watch: Talaat Mostafa Group Holding (TMGH) reported consolidated net profits of EGP 826 mn in FY2016, up from EGP 762 mn in FY2015 according to a regulatory filing.

Online payment provider Payfort and entrepreneurship platform Wamda are collaborating on publishing the first fintech research report in the MENA region this month, Daily News Egypt reports. The report “aims to identify the key drivers and barriers for the new FinTech industry in the region. It will also offer insights on what solutions FinTech startups are providing and what investors and policymakers need to consider now in order to unleash FinTech’s potential.”

Egypt’s General Intelligence Service hired Weber Shandwick to lobby on Egypt’s behalf in the US for USD 1.2 mn, according to the Associated Press, which cites documents on the Justice Department’s website. “The contract posted on the site shows that the company will assist Egypt in ‘promoting its strategic partnership with the United States,’ highlighting its economic development, showcasing its civil society, and publicizing Egypt’s ‘leading role in managing regional risks.’”

The lobbying is entirely warranted considering the US State Department’s critical report on Egypt’s human rights record, which drew the ire and objections of Egypt’s Foreign Affairs Ministry. The report — part of the State Department’s Country Reports on Human Rights Practices for 2016 — says that Egypt’s most significant human rights issues include excessive use of force by security forces, deficiencies in due process, and the suppression of civil liberties. Responding in a  statement, the Foreign Ministry stated that the report reflects the American viewpoint, and is not in any way related to contractual legal frameworks to which Egypt commits, including its membership in UN organizations. The ministry said human rights conditions are monitored by independent, governmental organizations, as well as the House of Representatives.

TV presenter Ibrahim Eissa was summoned for questioning at the Prosecutor General’s office yesterday, Al Masry Al Youm reports. Eissa’s questioning follows a case filed by Speaker Ali Abdel Aal, accusing Eissa of insulting the House of Representatives. Lawyer Nasser Amin says what is happening with Eissa is in violation of the constitution and goes against freedom of expression. Eissa was released after questioning yesterday evening. The Prosecutor General’s office has also reportedly begun a second investigation against Eissa for an article in which he likens Sinai to war-torn Iraq and Syria, Al Mal reports.

The Alexandria Criminal Court dropped a corruption lawsuit against Mubarak-era businessman Hussein Salem, his family, and 11 other defendants on Saturday, Daily News Egypt reports. Egypt had reached a reconciliation agreement with Salem and his family in August to drop charges in exchange for 75% of their wealth, worth EGP 5.34 bn.

Dubai Financial Market (DFM) launched a trading platform for exchange-traded funds (ETFs), the first of its kind in regional capital markets, yesterday. Afkar Capital listed the first ETF fund on DFM platform under the symbol UAETF and announced signing Al Ramz Capital as a new Authorized Participant (AP) for it, bringing the total number of APs to four. Afkar also appointed Beltone Financial as a Foreign Liquidity Provider. Existing UAETF Authorized participants include EFG Hermes Brokerage UAE, Al Safwa Mubasher Financial Services, and NBAD Securities. “The addition of a new AP and the appointment of a foreign market maker will further facilitate the creation and redemption of UAETF’s shares, keeping its fair value in check, and will allow the firm to efficiently meet the growing market demand for the ETF,” DFM says.

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Image of the Day

The Fresh Prince is a long ways away from West Philly: Actor Will Smith is visiting a star-struck Cairo and social media is losing its collective mind. Even the State Information Services ran news of his little holiday, saying he arrived Sunday with his family from Morocco to visit attractions including the Egyptian Museum, the Pyramids and Sphinx. Egypt’s eternal Antiquities Minister and tour guide to the stars Zahi Hawas accompanied them on the tour. Smith was apparently fascinated by the Sphinx, Hawas tells Xinhua (although it could be fascination at the living mummy describing the attractions to him).

Egypt in the News

Topping headlines on Egypt this morning are pickups of the AP’s story on Egypt’s General Intelligence Service hiring Weber Shandwick to lobby for Egypt, with some sensationalizing a very common practice.

Father Rafic Greiche, spokesman for Egypt’s Catholic Church, praised local Muslims for helping embattled Christians in Sinai following attacks by Daesh, Catholic publication Crux reports. “Ordinary Muslims are kind and try to help however they can – they’re often first on the scene, rescuing the injured and taking them to hospitals,” Greiche told Catholic News Service. “You can never do enough against jihadist and terrorist attacks, which come, like any criminal acts, at a time no one can foresee … But while no country can be fully secure, I think there’s will on government side to act decisively against these constant attempts to destabilize Egypt.”

Other news on Egypt making headlines this morning include:

  • The National is running a piece by Arabic News Digest compiling a number of reactions and opinions to Mubarak’s acquittal of charges of involvement in the killing of protesters in 2011, most of which look favorably on the ruling.
  • In keeping with the theme of Trump as galactic overlord Xenu, the Associated Press is running a story on the ill-treatment of journalists across the world including Egypt — which takes a grim view of the El Sisi administration’s policies towards dissident journalists.
  • Haaretz is running a piece on how Cairo would have been a setting for a joint declaration on peace between Prime Minister Benjamin Netanyahu and opposition leader Yitzak Herzog proposed six months ago, which would have involved an Israeli unity government and land concessions for a wider peace. A crisis over the Amona outpost tanked the proposal.
  • On a related note, Palestinian news agency Maan is reporting that Egypt will open the Rafah border crossing from today until Wednesday.
  • The opening of Mall of Egypt is being celebrated by the Emirati press, with both The National and Khaleej Times running favorable pieces on the USD 708 mn “Dubai-style” development and its indoor ski slope.
  • Egypt is apparently deporting 104 Malaysian students in Egypt for not having student visas, Malaysia’s New Straits Times reports. Most of the students were apparently receiving religious schooling.

On Deadline

Sahar Al Gaara takes to the pages of Al Masry Al Youm to sharply criticize what she describes as House Speaker Ali Abdel Aal’s authoritarian management style. Gaara says that Abdel Aal — the second most important man in Egypt after President Abdel Fattah El Sisi — is expected to be a champion of the people, yet instead has been leading an intimidation campaign against the media and clamping down on opposing views. She cites the investigation of journalist Ibrahim Eissa and the ejection of MP Mohamed El Sadat as prime examples of this. “It would be a crime to have a House of Representatives that is incapable of encompassing difference and diversity,” she says.

Diplomacy + Foreign Trade

Russia and Egypt have agreed to finalize 17 intergovernmental agreements, Konstantin Kosachev, chairman of the upper house of Russian parliament’s foreign affairs committee, said, according to Sputnik. The results of the Russian delegation’s visit to Egypt “are substantial and specific … It was important for us to understand whether there was attitude for cooperation. We have undoubtedly noticed it,” Kosachev said. The specific agreements were not explained.

A delegation of 25 Spanish companies is in town for two days to discuss potential investment opportunities, Al Masry Al Youm reports.

Foreign Minister Sameh Shoukry demanded yesterday an investigation into the death of an Egyptian citizen in an Italian prison last week, Ahram Online reports. Italian authorities said the inmate, Hany El-Sayed Mohamed, had committed suicide in the prison, according to MP Ghada Agamy. Shoukry ordered Egypt’s embassy in Rome to coordinate with Italian authorities on the investigation and to ensure that the results are communicated. Mohamed reportedly entered Italy illegally and was sentenced to four years in prison for assaulting a police officer. Naturally, the strong wording picked up by the newspaper is telling considering the dynamics of the death of Giulio Regeni, which still looms over Italian-Egyptian relations.

Energy

BP to process 600 mcf/d of gas from WND using Shell’s Burullus treatment plant

BP is bringing 600 mcf/d of gas from West Nile Delta (WND) project’s Taurus and Libra fields in North Alexandria onstream and will process them at Shell’s Burullus gas treatment plant by the end of April, an unnamed source told Al Borsa. The sources say Shell will charge BP USD 0.3 per mcf of gas processed in its plant and that BP is now completing a pipeline to link the Burullus plant with the gas fields. Production output from West Nile Delta (WND) project’s five fields will increase gradually to 1.25 mcf/d by end of 2019.

SDX Energy Inc preparing to start drilling in South Disouq exploration well

SDX Energy Inc is set to start drilling in the South Disouq exploration well within two weeks, after completing construction work at the wellsite, Proactive Investors reports. SDX finalized the location for drilling in the concession, in which it operates a 55% interest, in November.

Basic Materials + Commodities

Edita to begin operating two new production lines in 2H2017

Edita plans to begin operating two new production lines for wafer and cake products at its new factory in the Polaris Al Zamil Industrial Park in 2H2017, Investor Relations Manager Menna Shams El Din tells Al Borsa. The firm had purchased a 55,500 sqm plot of land at EGP 54 mn for the factory last May, according to the newspaper.

Nestlé Egypt to increase exports by 30% to EGP 1 bn, to invest EGP 250 mn in 2017

Nestlé Egypt is looking to increase its exports 30% y-o-y to EGP 1 bn in 2017 and is planning to invest EGP 250 mn in 2017, CEO Yasser Abdul Malak told Daily News Egypt. “Nestlé Egypt intends to inject EGP 1 bn of new investments over the next five years to increase domestic production; most notably Nescafé and chocolate,” he told the newspaper. The company is expanding with further exports in Africa and Abdul Malak notes that 40% of the company’s exports go to Libya and other major export markets include Lebanon, Jordan, UAE, and Saudi Arabia.

Sakr Group looking to increase exports to USD 30 mn in 2017

Sakr Group for Food Industries is looking to increase exports by 66% to reach USD 30 mn this year, Daily News Egypt reports. The company is targeting Arab and European countries, as well as the United States to reach its targets, chairman Ahmed Sakr says.

Food company Hero targets doubling exports to EGP 500 mn in 2017

Fruit-based products manufacturing company Hero Middle East & Africa, which owns the Vitrac brand, is planning on doubling its exports this year to EGP 500 mn, Al Borsa reported. Managing Director Mahmoud Bazan says that achieving the export target will make exports account for 50% of Hero’s sales, up from 34% in 2016.

Supply Minister sets price of sugar at EGP 10.5/kg

Supply Minister Ali El Moselhy reduced the price of sugar to EGP 10.5 per kg for regular consumers, and is forcing manufacturers to print the price on the packaging to crack down on multiple prices in the market, Al Borsa reports. The decision also sets the price of sugar sold to traders at EGP 9,250 per tonne, and stipulates that sugar manufacturers direct EGP 1,250 per tonne sold towards funding sugar imports. Ahmed El Fendi, board member of the Federation of Egyptian Industries’ food industries division tells Ahram Gate that setting dual pricing for consumers and traders is self-defeating as traders could seize the opportunity to increase their profit margins by selling to factories.

Real Estate + Housing

EGP float runs up costs of New Heliopolis development

The EGP float has raised the costs of developing the 655-acre New Heliopolis project 20% to EGP 35 bn, up from an initial estimate of EGP 30 bn before November, said Hany Al Deeb, CEO of Heliopolis Housing and Development company (HHD), which is co-developing the project with SODIC. Al Deeb tells Daily News Egypt that the float had negatively impacted the company overall, with surging prices of raw materials such as steel and cement. HHD holds a 30% stake in the New Heliopolis development, with SODIC carrying a 70% stake.

Phase two of MNHD’s SARAI sells out

Madinet Nasr Housing & Development (MNHD) announced that the second phase of its project SARAI in New Cairo has sold out. 787 houses were sold, bringing in reservations worth of EGP 1.8 bn in reservations, of which EGP 845 mn worth of contracts were inked and a balance of EGP 904 mn to be finalized in March, the company says.

CONSTEC awarded EGP 95 mn construction contract by SODIC

Construction and Design (CONSTEC) says it was awarded the project for construction works on SODIC’s East Town Villette project, according to Al Mal. The contract is worth EGP 95 mn, CONSTEC’s Managing Director Ashraf Abdel Hakim says, and will be implemented over three phases within 15 months. Abdel Hakim says CONSTEC has already completed EGP 250 mn worth of projects for SODIC in the past two years.

Telecoms + ICT

Vodafone Egypt selects Ericsson as Network Function Virtualization partner

Vodafone Egypt tapped Ericsson as its Network Function Virtualization (NFV) partner and went live with the commercial virtual network function, LteWorld reported. NFV involves virtualizing network services that are currently being executed by hardware owned by a single company that does not share knowledge about its technology, i.e. “proprietary” hardware. “Since October 2016, Ericsson’s virtual Serving GPRS Support Node – Mobility Management Entity (SGSN-MME) has been serving and managing commercial mobile broadband traffic on the Vodafone Egypt network,” according to LteWorld. Ericsson Egypt CEO Helene Henriksson tells Al Borsa that the company plans to work as a consultant to Egypt’s mobile network operators on preparations to offer 5G services, and is currently waiting for the operators to receive their 4G spectra to assist them in rolling out the new service.

UK court orders GTH and Orascom to pay additional USD 7.75 mn in accrued interest in Atheer case

A UK court ordered Global Telecom Holding (GTH) and Orascom Telecom Iraq (OTI) to pay an additional USD 7.75 mn in accrued interest and GBP 1.25 mn in interim legal costs on top of the USD 60 mn they will be paying Atheer Telecom Iraq Limited by 15 March a company press release said. The company will continue to seek an appeal for the decision. The dispute originated from the 2007 sale of Iraqna, OTI’s Iraqi mobile subsidiary, to Atheer, which sought the indemnity for certain tax liabilities.

Automotive + Transportation

Auto sales decline 39% y-o-y in January

Auto sales declined 39% year-on-year in January, with 9,400 vehicles sold throughout the month, according to data from the Automotive Information Council, Al Borsa reports. Passenger car sales dropped 28%, while bus and truck sales fell 55.5% and 57.8%, respectively. General Manager of Brilliance at Bavarian Auto, Khaled Saad, attributed the declining sales to the sharp increase in auto prices during the past three months, which have discouraged purchases. Saad says the downward trend likely persisted in February, and expects sales to pick up in March on the back of price reductions auto companies are beginning to introduce in a bid to speed up sales of stockpiled vehicles.

Administrative Court to start looking into lawsuit against Uber and Careem on 11 April

The Administrative Court has set 11 April as the date to begin looking into a lawsuit filed by 42 taxi drivers to shut down ride-hailing apps Uber and Careem’s operations in Egypt, whom they say violate the law by evading an annual EGP 800 tax on cabs by operating private vehicles, Al Borsa reports. They won’t read this, but if someone knows a taxi driver, please tell him to tell them at the next meeting of the cry-babies club that legislation to formalize ride-sharing apps operations in Egypt is coming, so, good luck.

On Your Way Out

Heliopolis is piloting a project to buy garbage from residents starting next week, Heliopolis district head Ibrahim Saber told Al Shorouk. There will be two collection centres in Heliopolis where people will be able to sell their garbage. It is not yet clear how and where will the district process the garbage, how much it will pay for it, or how it will manage the inevitable backlash from informal garbage collectors.

The markets yesterday

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EGP / USD CBE market average: Buy 16.3347 | Sell 16.4403
EGP / USD at CIB: Buy 16.35 | Sell 16.45
EGP / USD at NBE: Buy 16.26 | Sell 16.36

EGX30 (Sunday): 12,500 (+1.5%)
Turnover: EGP 750.1 mn (83% above the 90-day average)
EGX 30 year-to-date: +1.3%

THE MARKET ON SUNDAY: The EGX30 ended Sunday’s session up 1.5%. CIB, the index heaviest constituent rose 1.9%. The EGX30’s top performing constituents were: Juhayna up 5.7%, Pioneers Holding up 4.2%, and Cairo Oils and Soap up 4.1%. Yesterday’s worst performing stocks included Porto Group down 3.9%, Amer Group down 3.3%, and Domty down 2.8%. The market turnover was EGP 750.1 million, and foreign investors were the sole net buyers.

Foreigners: Net Long | EGP +34.9 mn
Regional: Net Short | EGP -11.4 mn
Domestic: Net Short | EGP -23.5 mn

Retail: 77.0% of total trades | 78.2% of buyers | 75.9% of sellers
Institutions: 23.0% of total trades | 21.8% of buyers | 24.1% of sellers

Foreign: 10.4% of total | 12.6% of buyers | 8.2% of sellers
Regional: 5.6% of total | 4.8% of buyers | 6.3% of sellers
Domestic: 84.0% of total | 82.6% of buyers | 85.5% of sellers

WTI: USD 53.25 (-0.15%)
Brent: USD 55.90 (0.00%)
Natural Gas (Nymex, futures prices) USD 2.91 MMBtu, (+3.04%, April 2017 contract)
Gold: USD 1,236.00 / troy ounce (+0.77%)TASI: 6,968.0 (-0.7%) (YTD: -3.4%)
ADX: 4,565.2 (-0.7%) (YTD: +0.4%)
DFM: 3,543.3 (-1.1%) (YTD: +0.4%)
KSE Weighted Index: 425.9 (+0.3%) (YTD: +12.0%)
QE: 10,721.2 (0.0%) (YTD: +2.7%)
MSM: 5,807.8 (-0.1%) (YTD: +0.4%)
BB: 1,342.6 (+0.1%) (YTD: +10.0%)

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Calendar

06-08 March (Monday-Tuesday): EFG Hermes One on One Conference, Atlantis, The Palm, Dubai.

15 March (Wednesday): Arab Women Organization’s event: Investing in refugee women, UN General Assembly Building, New York City.

18-19 March (Saturday-Sunday): Delegation of Japanese food industries companies visits Egypt.

29-30 March (Wednesday-Thursday): Cityscape Egypt Conference, Nile Ritz-Carlton, Cairo.

29-31 March (Wednesday-Friday): Balanced Development of Siwa Oasis International Tourism Conference, Siwa Oasis.

30 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

31 March – 03 April (Friday-Monday): Cityscape Egypt Exhibition, Cairo International Convention Center, Cairo. Register here.

03-06 April (Monday-Thursday): Agri & Foodex Africa, Khartoum International Fair Ground, Khartoum, Sudan.

04 April (Tuesday): Emirates NBD Egypt PMI reading for March announced. The report will be available here.

08-10 April (Saturday-Monday): Pharmaconex, Cairo International Convention Center, Cairo.

16 April (Sunday): Coptic Easter Sunday.

17 April (Monday): Sham El Nessim, national holiday.

20 April (Thursday): Closing date for the Egyptian Mineral Resources Authority bid round number 1 for 2017 for gold and associated minerals.

24-25 April (Monday-Tuesday): Renaissance Capital’s Egypt Investor Conference, Cape Town, South Africa.

25 April (Tuesday): Sinai Liberation Day, national holiday.

30 April – 03 May (Sunday-Wednesday): Cement & Concrete 2017, Riyadh International Convention & Exhibition Center, Saudi Arabia.

01 May (Monday): Labor Day, national holiday.

08-09 May (Monday-Tuesday): Third Egypt CSR Forum, Intercontinental Citystars Hotel, Cairo.

16 May (Tuesday): Official expiry date for the decision to suspend capital gains taxes on stock market transactions.

22-23 May (Monday-Tuesday): North Africa Mobile Network Optimisation Conference, Cairo.

27 May (Saturday): First day of Ramadan (TBC).

26-28 June (Monday-Wednesday): Eid Al-Fitr (TBC).

30 June (Friday): 30 June, national holiday.

23 July (Sunday): Revolution Day, national holiday.

02-05 September (Saturday-Tuesday): Eid Al-Adha, national holiday (TBC).

17-19 September (Sunday-Tuesday): Pipeline-Pipe-Sewer-Technology Conference & Exhibition, Intercontinental Citystars Hotel, Cairo.

20-23 September (Wednesday-Saturday): 2017 Automech Formula car expo, Cairo International Convention Center, Nasr City, Cairo

22 September (Friday): Islamic New Year, national holiday (TBC).

06 October (Friday): Armed Forces Day, national holiday.

01 December (Friday): Prophet’s Birthday, national holiday.

08-10 December (Friday-Sunday): RiseUp Summit, Downtown Cairo.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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