Tuesday, 10 October 2017

It’s World Economic Outlook Day

TL;DR

What We’re Tracking Today

Expect the rest of this football-centric news week to be focused squarely on the global macro outlook: The IMF and World Bank annual fall meetings kicked off yesterday and will run until 15 October. Among those attending are Investment Minister Sahar Nasr, Finance Minister Amr El Garhy, EGX chief Mohamed Farid and Egyptian Financial Supervisory Authority Chairman Mohamed Omran.

That should mean the IMF looks into its crystal ball today and unveils its latest World Economic Outlook. The IMF is predicting global growth of 3.5%n in 2017 and 3.6% next year, and German policymakers expect the fund will raise today its outlook for next year. Look for heavy coverage on this front tomorrow as the presser is scheduled for 9-10am Eastern today. Tap or click here to visit the landing page for the WEO.

Expect some tough words from IMF boss Christine Lagarde, the Guardian suggests, noting that she’s expected to deliver this week “a hard-hitting speech … urging world leaders to push ahead with reforms to turn the current global economic recovery into something more sustainable.” Our understanding is that Lagarde speaks on Wednesday and that both she and World Bank President Jim Yong Kim will hold a news conference tomorrow.

Garhy, Nasr to headline special lunch for investors, U.S. business community in New York: Our friends at AmCham and EFG Hermes will then host a special lunch in New York for Investment Minister Sahar Nasr and Finance Minister Amr El Garhy on Tuesday, 16 October. The gathering will feature keynotes from both ministers. Each of the keynotes will be followed by panel discussions, AmCham and EFG Hermes said in a statement (pdf) targeting a US audience. EFG Hermes Group CEO Karim Awad will lead a discussion with El Garhy as well as reps from BNY Mellon and Citi Group. “The second discussion will include Minister Nasr and be moderated by a senior Apache Corporation executive with the participation of a senior executive from PepsiCo,” the statement said. The event, headlined “Egypt: The Revival of an Economy … Stability, Reform and Growth,” is being hosted in coordination with the US Chamber of Commerce, US-Egypt Business Council and the Egypt-US Business Council.

It’s down to the wire for Moushira Khattab’s bid to run UNESCO after Cairo’s preferred candidate finished third in initial voting. The closed-door, secret ballot vote got underway yesterday with a total of seven candidates vying for the job, among them nominees from China, Azerbaijan, Vietnam, France, Qatar, Lebanon and Iraq in addition to Khattab. Day-one votes broke down as 19 for some Qatari or another, 13 for France’s Audrey Azoulay and 11 for Khattab, the Jerusalem Post reports. The winner will need 30 of the 58 votes on UNESCO’s executive board to win the nomination. If there’s no clear winner today, daily rounds of voting will continue this week until a two-candidate runoff takes place on 13 October. The Foreign Ministry continues to lobby African states for support, according to a Foreign Ministry statement, but Khattab’s campaign told talk show hosts last night that African nations weren’t playing ball.

President Abdel Fattah El Sisi is scheduled to meet with Germany’s Economic Cooperation and Development Minister, Gerd Müller, in Cairo today. The two are expected to discuss cooperation on renewable energy, professional training, and agriculture. Müller, who will be in Egypt for the next few days, has already met Investment Minister Sahar Nasr, Al Mal reports.

On The Horizon

EFG Hermes will hold its 7th Annual London Conference on 6-9 November. The conference will see C-suite execs from top listed companies in MENA as well as frontier markets (among them Pakistan, Kenya, Nigeria, Bangladesh, and Sri Lanka) meet face-to-face with top global investors with mandates to invest in emerging and frontier markets. The event will take place at Emirates Arsenal Stadium in London.

An IMF delegation is expected in Cairo later this month to conduct a second review of the state’s reform program.

The executive regulations for the Natural Gas Act will be ready before the end of 2017, EGAS Vice Chairman Amira El Mazni said yesterday, according to Al Ahram. Previous statements from EGAS officials had us expecting the regs to come out in October and see a new industry regulator established before year’s end. The act was ratified in early August.

Enterprise+: Last Night’s Talk Shows

The airwaves last night were still buzzing with news that Egypt would be going to the FIFA World Cup next year for the first time since 1990.

Yahduth fi Misr’s Sherif Amer discussed the return of football fans to the stadiums with House of Representatives Deputy Speaker Soliman Wahdan, who said that the crowds’ “good behavior” during Sunday night’s game is a sign that it’s time to lift the ban and return to “normal measures.”

On Kol Youm, Amr Adib covered President Abdel Fattah El Sisi’s congratulatory statement to the national football team. He also spoke to veteran footballer Magdy Abdel Ghany, who is famed being the only Egyptian player to have ever scored a goal in the World Cup (back in ‘90) and who has never since let us forget it since (watch, runtime 4:32).

Riyadh’s ambassador to Cairo, Ahmed Al-Qattan, also phoned-in to congratulate Adib on Egypt’s success. He said he hopes to “congratulate Tunisia, Syria, and Morocco soon as well” (watch, runtime 3:00).

Adib broke briefly from football to talk about businessman Mohamed El Morshedy’s EGP 10 mn donation to the families of police and military service members killed in terror attacks (watch, runtime 3:03) and also to comment on the inauguration of new convention centers in New Cairo (watch, runtime 18:15).

Over on Hona Al Asema, Lamees Al Hadidi spoke to Egyptian Football Association member Karam Kordy, who confirmed that Argentine coach Hector Cuper will continue managing the team through the 2018 World Cup (watch, runtime 7:58).

El Hadidi moved on to speak to Egypt’s candidate for UNESCO leadership, Moushira Khattab, who came in third in the first round of votes yesterday. Apparently, lobbying of African countries for their support hasn’t been terribly fruitful (watch, runtime 4:45).

Qatari bribery? The UNESCO election was also the topic of the day for Masaa DMC’s Eman El Hosary, who spoke to Khattab’s campaign director, ambassador Mohamed El Oraby. The diplomat confirmed that some African leaders backtracked on their promise to support Egypt when push came to shove. He also implied Qatar “relied on its financial strength” (read: tossed around bags of cash) to sway the odds in its favor (watch, runtime 6:47).

Speed Round

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House Industry Committee looks at legislation to boost local components in domestic manufacturing: The House of Representatives’ Industry Committee will start hearings on key legislation including amendments to the Industry Act that will enforce a higher quota for local components in manufacturing, said the committee’s chair Ahmed Samir. The legislation would also tighten and enshrine a “buy Egyptian” requirement for government, Samir tells Al Mal.

This direction by the committee bodes well for the long-dormant Automotive Directive, which Samir said would also be a top priority for the committee. Bolstering domestic component quotas is in keeping with the spirit of the Automotive Directive, which would give assemblers incentives to go further up the value chain into manufacturing, while giving them a measure of protection against what they say are unfair benefits enjoyed by Turkish, EU and Moroccan imports. We anticipate the automotive directive will receive support from committee members despite the best lobbying efforts by auto importers who have worked hard to stall progress on the bill so far.

The committee will also look at changes to the Mineral Resources Act, especially considering that Federation of Egyptian Chambers of Commerce’s quarries division plans to lobby the committee hard on amending the executive regulations of the Act. According to the division’s head Ibrahim Ghaly, quarry operators wants to see licensing fees, royalties and tolls payable to the state cut by 50%. They are also angling for longer minimum concession periods.

Background on the Mineral Resources Act regs: The law and its executive regulations have been with the House for at least six months now with little progress and no media attention. It is unclear why the regs were sent to the House as well — MPs typically have no voice in them. According to Al Borsa, the executive regulations will propose raising fees on quarries between 300-747% depending on the mineral. Leasing quarries from the state will cost EGP 7-9 per sqm annually with a EGP 10,000 downpayment. Concessions will be granted for only one year, while the state is obliged to issue licenses in four months.

Other items on the committee’s agenda will include looking at legislation to IPO failing state-owned factories.

Also at the House today, the Economics Committee is expected to begin reviewing the amended Consumer Protection Act, according to Al Mal. The Ismail Cabinet had signed off on the bill in June, amid worries that it includes provisions that would allow the government to set price controls on certain goods.

In other House news, Talaat Elsewedy has been selected to chair the House of Representatives’ Energy and Environment Committee after Mohamed Rashwan’s election last week was contested, according to state news outlet EgyNews.

The House gave its preliminarily approved amendments to the law regulating the Administrative Control Authority during its plenary session yesterday, Youm7 reports. As we noted yesterday, the amendments grant the anti-corruption body technical, financial, and administrative independence and change its reporting line to Ittihadiya rather than the prime minister’s office. The House Legislative Committee had signed off on the amendments on Sunday.

Is the House looking to limit women’s access to abortions? The House also referred five draft laws to their respective parliamentary committees for discussion, Ahram Gate reports. The legislation includes a draft law to regulate and limit abortions to specific cases, which was referred to a joint health and legislative committee; a draft law regulating the work of religious officiants (maazouns), which was referred to the legislative, religious endowments, and social solidarity committees; and a draft law to regulate fishing and fish farms, which was referred to the agriculture, transport, budget and planning, and legislative committees.

Egypt’s collective high from the Pharaoh’s successful World Cup campaign reigned supreme over both local and international press coverage yesterday. President Abdel Fattah El Sisi announced that each of the players on Egyptian national football team will be receiving a prize of EGP 1.5 mn, BBC reports. “The prize will not be coming out the state’s budget,” a source at the Finance Ministry told Al Masry Al Youm. The awards will be disbursed from prize funds allocated by FIFA and sponsors “that could reach up to EGP 75 mn.” Kit supplier Adidas will pay the team EUR 700k, the source added. The source also noted that the awards will be disbursed to the team directly, without entering state coffers.

To get an idea of just how crazy the accomplishment has made us (in case the persistent honking hasn’t clued you in), you need turn only to this epic freakout by this old codger at the win. If seizures ever came with a smiley face, this is what they would look like.

Etisalat Misr considers capital increase to fund capex amid high interest rates, says MNOs weren’t down with the scratch card price hike: Etisalat Misr is considering a capital increase in the next 3-6 months, said the company’s CEO Hazem Metwally. The move is one of many Etisalat is exploring to bolster its ability to invest and fund capex in a high interest rate environment, he added at a statement to the press at the Dubai GITEX Tech Week. Metwally said that the company’s bottom line has been hurt by the interest rate hikes as well as fallout from reforms including the EGP float and fuel and electricity subsidy cuts. Metwally criticized the National Telecommunications Regulatory Authority’s decision to up prices on phone scratch cards 36%, lending his voice to those of Vodafone Egypt executives in claiming the move was opposed by MNOs, according to Al Mal. Separately, Etisalat Misr signed a four-year contract with Ericsson to modernize and expand its core network and business support systems, Ericsson announced. The agreement will help Etisalat “capitalize on the growth in 4G and pave the way for 5G and Internet of Things,” said Metwally.

Pariah statelet Qatar is looking to take advantage of the emerging markets debt boom and is considering raising at least USD 9 bn in an international bond issuance. Government officials are in talks with banks to decide on the best time for a possible sale, Bloomberg reports. Qatar will target investors in Asia, the US and Europe to make up for a shortfall of regional investors thanks to the blockade.

University of Chicago economist Richard Thaler was awarded the 2017 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel yesterday for his contributions to behavioural economics. Thaler “has incorporated psychologically realistic assumptions into analyses of economic decision-making. By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes.”

Amazon too friendly towards knock-offs? Amazon is having trouble attracting luxury brands to its gargantuan inventory because they’re afraid hosting their products on the e-commerce platform would dilute their value, the WSJ says (paywall). The retailer is viewed as too lenient with its authenticity assurance and policing measures. Swatch, for example, which owns high-end brands like Omega and Longines, pulled out of talks with Amazon this year when the issue of policing counterfeit brands came to the negotiating table. Amazon, however, is wary that too much policing could drive away third party distributors that use the website.

Meanwhile, Ikea is diversifying away from its classic store model to get in on the e-commerce action, according to the FT (paywall). Decreasing footfall is leading the furniture giant to take a step back from its sprawling suburban outlet model and use instead a major online retailer, such as Amazon or Alibaba, without specifying which. Ikea is also planning to add smaller, city-center stores to its sales arsenal.

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Image of the Day

World’s oldest fish dinner is on display in Yorkshire: An Ancient Egyptian exhibition in Yorkshire is claiming to have the world’s oldest fish dinner as part of its display, according to The Star. The once sumptuous, but now stale, meal dates back roughly 3,500 years and includes marrowfat mushy peas, a piece of bread, and a Nile perch. The small exhibition also includes several coffins and daggers. Ah, cultural appropriation by the English. We love it. Restore flights to Sharm and we’ll forgive you.

Egypt in the News

Topping coverage of Egypt in foreign press for a second day is our return to the World Cup after 27 years, which made “Egyptians forget their woes, briefly,” says the Washington Post. Most press reports appear to have pegged much of the credit to our star forward Mohamed Salah. The Associated Press notes how Salah has become a national hero and the special thanks given to him by President Abdel Fattah El Sisi.

Meanwhile,FIFA.com says there are five main factors behind Egypt’s successful campaign to qualify to the World Cup. The first is the stable coaching ticket and the second is coach Hector Cuper’s reliance on “Essam El Hadary, … the pacey Mohammed Abdul Shafi, … Arsenal’s defensive midfielder Mohamed El Neny, who has been tirelessly breaking up opposition attacks. Up front, Cuper’s go-to man is Mohamed Salah.” Salah being in-form and El Hadary’s “comeback” were also crucial to the campaign, as well as the successful streak winning at home in Borg El Arab.

Cairo is one of the world’s megacities with at least 10 mn people, with an estimated population of 19 mn, according to a list compiled by Axios. The list notes that “518 mn people (7% of the global population) now live in megacities of 10 mn or more people. That’s a tenfold increase from four decades ago, and it’s radically changing the way people live, work and view the world… Now there are 31 megacities … and most of them are in the developing world. The UN projects 10 more will join the list by 2030, and all but one (Bogotá) is in Africa or Asia.”

Other international stories on Egypt worth noting in brief include:

  • Three Egyptian siblings — Abdullah, Rasha and Shaimaa Kamal — have been the toast of the Chinese press over the past week for working alongside China’s Culture Ministry to promote Chinese culture and language in Egypt.
  • Egypt is at the forefront of renewable energy in North Africa along with Tunisia and Morocco — and could export electricity to Europe, according to the EU Bulletin.
  • South Korea’s state-run nuclear operator Korea Hydro & Nuclear Power Co Ltd. will be looking towards new exports markets in Africa, such as Egypt and South Africa, now that it has received European Utility Requirements approval for its new reactors, Reuters reports.
  • Egyptian activist Mohamed Zaree is one of three finalists for the prestigious Martin Ennals Award — often called “the Nobel Prize for human rights” and named after Amnesty International’s esteemed former secretary-general. Zaree is featured in a glowing profile from PRI.

On Deadline

Opinion writers continue to cast shade on the House: We are quite pleased that opinion writers have not let up on how poor the House of Representatives’ performance was over the past two sessions. The latest, a scathing piece from Amr Rabei in Al Masry Al Youm, goes beyond the buffoonery and scandals and attacks the “sycophancy” of MPs. He criticizes how Parliament has failed to provide a check and balance on the government. He says this session it would be crucial that MPs move beyond that as we head into a presidential election cycle. He specifically pointed to a lack of an opposition party and rather stupidly hit on the fact that the House did not put the brakes on the government reducing subsidies.

Worth Watching

The BBC’s Blue Planet II is scheduled to hit TVs on 29 October and the trailer has people frothing at the mouth, according to The Telegraph. The seven-part series, which builds on the epic Planet Earth, is likely to be an audio-visual delight. It will be narrated by none other than David Attenborough and the score comes from a collaboration between Hans Zimmer and Radiohead. The series was filmed over four years and if the trailer is anything to go by, it is not going to disappoint (Watch here, runtime 1:00)

Diplomacy + Foreign Trade

Delegates from Hamas and Fatah are schedule to sit down in Cairo today to resume reconciliatory talks that were brokered by Egypt. Senior officials from both groups, including Gazan leader Yehiyeh Sinwar, arrived in Egypt on Monday for what is considered “the most ambitious attempt at reconciliation since Hamas seized control of the Gaza Strip from the Fatah-led Palestinian Authority in 2007,” the Associated Press says. Hamas spokesperson Fawzi Barhoum said yesterday that the two sides’ talks will focus on “the security issue, especially in Gaza, in the way that serves the home front, enforces the rule of law in a professional and national way and is not factional.”

This comes as we hear that Israel has reportedly refused to allow three Hamas leaders to leave the West Bank for Egypt, Anadolu Agency reports. “Egyptian efforts have failed to persuade Israel to allow the three group leaders from the West Bank to join the Hamas delegation in the talks,” Hamas official Hassan Yousef says.

FEC eyes Latin American export markets ahead of Mercosur FTA: The Food Export Council (FEC) is gearing up for Egypt’s freetrade agreement with Mercosur countries to come into effect and already looking for export opportunities in Latin America, council head and Edita’s CEO Hani Berzi tells Daily News Egypt. The FTA, which should be enforced by the end of the year, will allow Egyptian companies customs privileges in Brazil, Argentina, and Paraguay. This comes as Reuters reports that Brazil is looking to “revive ties with Africa” as it “sees vast export market for food and manufactured goods.” Brazil’s poultry exports rose by 27% y-o-y in 8M2017, with the larger share of that going to Egypt, Angola, and South Africa.

A delegation from Egypt’s Foreign Affairs Council arrived in Khartoum Monday for a three-day visit to discuss cooperation and bilateral ties, according to Ahram Gate.

Energy

Rosneft closes transaction to buy Zohr stake

Russia’s Rosneft closed the transaction to buy a 30% stake in the Zohr gas field from Eni, TASS reports. The transaction was first reported in December 2016, where Rosneft was said to be paying Eni USD 1.125 bn for the stake and included a pro quota reimbursement of past expenditures amounting to USD 450 mn. Rosneft joins Eni, which owns a 60% stake of the field, and BP, which owns 10%, in developing Zohr. “Participation in the development of a unique production asset will strengthen positions of Rosneft in the strategic markets of Europe and Middle East,” Rosneft says, according to Reuters.

Electricity Ministry signs USD 250 mn contract to develop Phase 2 of power grid overhaul

The Electricity Ministry signed a USD 250 mn contract this week with the State Grid Corporation of China (SGCC) to help develop 1,210 km electricity distribution network as part of the second phase of upgrading the power grid. The company will be subcontracting the project to local developers in order to speed up work on the project with an eye towards completing before next summer, sources from the Egyptian Electricity Holding Company tell Al Mal. SGCC will help to provide funding for the project, the source added. On a related note, the Electricity Ministry is asking the cabinet of ministers and the Finance Ministry to expedite the release of some of its provisions so it can pay suppliers and contractors, Al Mal reports. Sources refused to disclose the exact sum the Electricity Ministry is seeking, but said it was part of the EGP 52.8 bn Electricity subsidy allocation in the budget. Among the partners expecting payment from the Ministry are Siemens and State Grid, the sources said.

Solar power companies accuse government of being slow to process pledge of shares agreement, delaying financial close

Solar power firms working on phase 2 of the feed-in tariff program are accusing the government of being too slow to process their share-pledge agreements with international lenders, sources close to the matter tell Al Borsa. The step is necessary for the companies to secure funding for their projects and reach financial close, the deadline for which expires on 28 October. Solar power companies had asked the Electricity Ministry for a two-week extension on their deadline earlier this month, after having complained about the slow pace of infrastructure development for their projects in September.

Ansaldo Energia begins EUR 246 mn phase 3 of 6 October plant

Italy’s Ansaldo Energia has begun phase 3 of the Cairo Electricity Production Company’s 6 October power plant which would raise its capacity to 900 MW from 600 MW, sources tell Al Mal. The EUR 246 mn phase would see Ansaldo convert the plant into a combined-cycle plant.

JICA approved USD 60 mn to fund solar power plant in Hurghada

The Japan International Cooperation Agency (JICA) approved disbursing USD 60 mn in funding to develop a solar power plant in Hurghada, said Mohamed El Khayat, head of the New and Renewable Energy Authority. The project, which had been in limbo for the past two years, will be put up for an international tender in mid-2018, he added, according to Al Borsa.

Infrastructure

Have plans to build the Ras Sudr airport reached a dead end?

It appears that the Civil Aviation Ministry and the Tourism Development Authority have failed to drum up investor interest in a tender to develop the Ras Sudr airport and resort which closed on Sunday, sources tell Al Mal. The ministry and the authority will be meeting to determine why the tender failed, said a source, who did not elaborate whether a second tender is in the offing. Orascom Construction, Hassan Allam, and Haddad Group had all expressed interest in the project though it was not clear why bids were not made.

Basic Materials + Commodities

Centamin achieves record total gold production from Sukari in 3Q2017

Centamin has announced yesterday record gold production levels from the Sukari gold mine in 3Q2017. The company’s output from Sukari went up by 26% q-o-q and 5% y-o-y to 156,533 ounces for the quarter. Centamin has maintained its production guidance of 540k ounces for 2017 and noted that the open pit achieved record levels of both total material movement and ore production. The Financial Times also has the story (paywall).

Obour Land to set up milk production project worth EGP 105-115 mn

Obour Land announced its intention to establish a milk production project at an investment cost of EGP 105-115 mn, according to a bourse disclosure. The cost will be financed over three years and will be developed over 35 feddans. Obour Land aims to produce 50 tonnes of milk a day from the project.

Manufacturing

Infinix and Meizu studying setting up local manufacturing

Chinese phone makers Infinix and Meizu as considering setting up local manufacturing lines,CEO of their local partner KMG Karim Ghoneim tells Al Mal. KMG is conducting feasibility studies with the two firms to set up local assembly lines under the framework of the new Investment Act but that his company is not the only one in talks with them. Infinix is amongst the top performers of Chinese smartphones in Egypt, leading the segment in online sales while Meizu will be entering the market this month.

Health + Education

New Japanese schools to begin operations this month, 12 operating already -Kagawa

A number of new Japanese schools will begin operating in Egypt this month, Ambassador Takehiro Kagawa told Al Mal. There are 12 Japanese schools currently working in Egypt and implementing Japanese education systems, he said. In total, the Education Ministry had agreed with Japan to set up a total of 28 schools across Egypt.

Banking + Finance

CBE increases Mortgage Finance Fund to EGP 20 bn

The CBE decided on Monday to allocate an additional EGP 10 bn to its Mortgage Finance Fund, bringing the total up to EGP 20 bn,according to Al Mal. The amount was increased after the program succeeded in giving out EGP 8.5 bn in loans. The CBE’s Mortgage Finance Fund seeks to boost financing for the middle- and low-income segments by providing favorable lending rates of 7% and 8% over longer time periods. The program is funded by the World Bank and other local institutions, including CIB.

Other Business News of Note

Cairo metro fatwa kiosks shut down -Gulf News

Cairo Metro authorities have shut down the “fatwa-kiosks” set up in metro station in Cairo, Gulf News reports. The booth faced a campaign by secularists against it who argued “that the subway is no place for religious discourses and could alienate Egypt’s Christian minority.” An official at Cairo Metro insisted the “closure was not related to criticisms against it… the contract simply wasn’t renewed after it expired.”

Fawry moves EGP 500 mn for e-commerce websites

Fawry processed EGP 500 mn-worth of sales for online retailers during 2Q2017, CEO Ashraf Sabry said yesterday, Al Masry Al Youm reports. The company’s revenues from e-commerce increased by 300% y-o-y for the period through the 60 or so websites they work with and has plans to have invested EGP 400 mn by the end of 2018 into upgrading and expanding its services, Sabry added. The company also plans to increase its Points-of-Sale to 70,000 by the end of the year from a current 60,000.

Egypt Politics + Economics

Ismail places economic, security-related crimes under State Emergency court’s jurisdiction

Prime Minister Sherif Ismail issued a decree placing certain security and economic-related crimes under the purview of the State Emergency courts for the duration of the state of emergency which was enacted in April and renewed in July, Ahram Online reports. Economic crimes covered by the decision, which was published in the Official Gazette on Saturday, includes violating regulations on supply of goods and violations of mandatory pricing rules. Security-related crimes which will pass to the State Emergency courts include illegal possession of arms and ammunition, protests at places of worship, and other terror-related crimes.

On Your Way Out

ON THIS DAY- On this day in 1985, the hijacking of Italian cruise ship Achille Lauro ended after US Navy F-14 fighters intercepted an airliner attempting to fly the Palestinian hijackers to freedom and force the jet to land at a NATO base in Sigonella, Sicily. The incident started on 7 October when the ship “docked at Alexandria, Egypt, and 651 passengers disembarked to tour the pyramids, intending to rendezvous with the ship at Port Said that night… four men brandishing AK-47 machine guns corralled the crew and the remaining 97 passengers and forced the captain to leave port.” After being denied port in Syria and Cyprus, the ship went back to Port Said. “In exchange for releasing the hostages, the hijackers demanded safe passage through Egypt and immunity from prosecution. Egypt acceded … The plane on which they had planned to escape … was located … U.S. fighter jets blockaded the larger passenger craft and forced it to land at a NATO air base … Eventually Italy arrested the hijackers.” In 1980, two big earthquakes struck the northern Algerian town of El Asnam leaving thousands feared dead. In Enterprise, readers were waking up to the prospect of subsidy cuts in 2015 following statements by the IMF’s chief Christine Lagarde, who required reforms before disbursing any funds. Also, the EGP was at “an all-time low” on the parallel market, trading at EGP 14-14.25 per USD 1.

The Market Yesterday

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EGP / USD CBE market average: Buy 17.59 | Sell 17.69
EGP / USD at CIB: Buy 17.58 | Sell 17.68
EGP / USD at NBE: Buy 17.6 | Sell 17.7

EGX30 (Monday): 13,968 (-0.2%)
Turnover: EGP 1.6 bn (75% above the 90-day average)
EGX 30 year-to-date: +13.2%

THE MARKET ON MONDAY: The EGX30 ended Monday’s session down 0.2%. CIB, the index heaviest constituent closed down 1.0%. EGX30’s top performing constituents were: Egyptian Iron & Steel up 6.4%; Arab Cotton Ginning up 5.5%; and SODIC up 3.2%. Today’s worst performing stocks were: Abu Dhabi Islamic Bank down 2.7%, Sidi Kerir Petrochemicals and Telecom Egypt both closed down 2.4%. The market turnover was EGP 1.6 bn, and local investors were the sole net sellers.

Foreigners: Net Long | EGP +31.9 mn
Regional: Net Long | EGP +17.9 mn
Domestic: Net Short | EGP -49.8 mn

Retail: 69.4% of total trades | 69.1% of buyers | 69.7% of sellers
Institutions: 30.6% of total trades | 30.9% of buyers | 30.3% of sellers

Foreign: 15.9% of total | 16.9% of buyers | 14.9% of sellers
Regional: 7% of total | 7.6% of buyers | 6.5% of sellers
Domestic: 77.1% of total | 75.5% of buyers | 78.6% of sellers

WTI: USD 49.56 (+0.55%)
Brent: USD 55.73 (+0.2%)
Natural Gas (Nymex, futures prices) USD 2.84 MMBtu, (-0.94%, NOV 2017 contract)
Gold: USD 1,286.4 / troy ounce (+0.9%)TASI: 7,114.01 (-1.11%) (YTD: -1.34%)
ADX: 4,450.65 (+0.47%) (YTD: -2.11%)
DFM: 3,610.82 (-0.01%) (YTD: +2.26%)
KSE Weighted Index: 437.21 (-0.71%) (YTD: +15.03%)
QE: 8,212.86 (+0.93%) (YTD: -21.31%)
MSM: 5,166.62 (-0.03%) (YTD: -10.65%)
BB: 1,273.18 (-0.47%) (YTD: +4.32%)

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Calendar

11-12 October (Wednesday-Thursday): 2030 Mega Projects Conference, Nefertiti Hall, Cairo International Convention Center, Cairo.

11-13 October (Wednesday-Friday): Middle East and Africa Rail Show, Cairo International Convention Center, Cairo.

15-16 October (Sunday-Monday): The Marketing Kingdom Cairo 3 conference, Dusit Thani Lakeview Hotel, Cairo.

17 October (Tuesday): The Narrative PR Summit, Four Seasons Nile Plaza, Cairo.

18-19 October (Wednesday-Thursday): Middle East Info Security Summit, Sofitel El Gezirah, Cairo.

18-20 October (Wednesday-Friday): AfriLabs annual gathering with the theme “Future of Cities: Innovation, Spaces and Collaboration,” The French University, Cairo. Register here.

23-27 October (Monday-Friday): 29th Business and Professional Women International Congress themed “Making a Difference through Leadership and Action,” Mena House Hotel, Cairo. Register here.

06-07 November (Monday-Tuesday): Crisis Communications Conference, Four Seasons Nile Plaza Hotel, Cairo.

06-09 November (Monday-Thursday): EFG Hermes’ 7th Annual London Conference on 6-9 November, Arsenal’s Emirates Stadium.

16 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee to review policy rates.

19-21 November (Sunday-Tuesday): 11th Annual INJAZ Young Entrepreneurs Competition, Four Seasons Nile Plaza, Cairo.

26-29 November (Sunday-Wednesday): 21st Cairo ICT, Cairo International Convention Center, Nasr City, Cairo.

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

01-03 December (Friday-Sunday): RiseUp Summit, Downtown Cairo.

03-05 December (Sunday-Tuesday): Solar-Tec, Cairo International Exhibition & Convention Centre.

03-05 December (Sunday-Tuesday): Electrix, Cairo International Exhibition & Convention Centre.

07-09 December (Thursday-Saturday): The Africa 2017 forum: “Business for Africa, Egypt and the World” Conference, Sharm El Sheikh.

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

17-21 February 2018 (Wednesday-Saturday): Women For Success – Women SME’s "World of Possibilities" Conference, Cairo/Luxor.

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