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Monday, 24 October 2016

BY THE NUMBERS

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Pharos Holding - http://www.pharosholding.com/

USD CBE auction (Sunday, 23 Oct): 8.78 (unchanged since 16 March 2016)
USD parallel market (Sunday, 23 Oct): 15.65 (from 15.40 on Saturday, 22 Oct)

EGX30 (Sunday): 7,274.15 (-0.04%)
Turnover: EGP 358.72 mn (15% below the 90-day average)
EGX 30 year-to-date: +18.10%

THE MARKET ON SUNDAY: EGX30 closed almost flat. Yesterday’s top performers were Heliopolis Housing, Orascom Construction, and TMG Holding where gains were offset by Domty, Porto Group, and Orascom Telecom Media and Technology closing in the red. Market turnover was an anemic EGP 358.7 mn, with local investors the sole net buyers.

Foreigners: Net short | EGP -40.9 mn
Regional: Net short | EGP -4.3 mn
Domestic: Net long | EGP +45.2 mn

Retail: 74.5% of total trades | 79.9% of buyers | 69.1% of sellers
Institutions: 25.5% of total trades | 20.1% of buyers | 30.9% of sellers

Foreign: 12.1% of total | 6.6% of buyers | 17.7% of sellers
Regional: 6.1% of total | 5.5% of buyers | 6.7% of sellers
Domestic: 81.8% of total | 87.9% of buyers | 75.6% of sellers

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PHAROS VIEW

Profit Margin Control Initiative: Adding Insult to Injury

Last week, the Egyptian government formed “a cabinet-level” committee to set profit margins in order to control basic goods’ price increase. While the government did not specify further details, the Egyptian prime minister explained that this is not a price control. we believe that profit margin control is effectively a price range control mechanism that ultimately leads to the same outcomes of price controls. Pharos believes that price-range control would lead to commodity shortages, the emergence of a parallel market, result in insufficient allocation of public resources and send a negative signal to investors. Tap or click here to read the full commentary (pdf).

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WTI: USD 50.47 (-0.75%)
Brent: USD 51.45 (-0.64%)
Natural Gas (Nymex, futures prices) USD 3.03 MMBtu, (+1.07%, November 2016 contract)
Gold: USD 1,263.60 / troy ounce (-0.32%)

TASI: 5,739.9 (+1.6%) (YTD: -17.0%)
ADX: 4,299.4 (+0.1%) (YTD: -0.2%)
DFM: 3,355.4 (+0.4%) (YTD: +6.5%)
KSE Weighted Index: 348.2 (+0.6%) (YTD: -8.8%)
QE: 10,434.0 (0.0%) (YTD: 0.0%)
MSM: 5,538.0 (-0.4%) (YTD: +2.4%)
BB: 1,147.4 (-0.4%) (YTD: -5.6%)

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.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.