Back to the complete issue
Wednesday, 7 February 2018

Global stock market performance featured prominently on the airwaves

The downturn in global stock markets featured prominently on the airwaves last night as the nation’s talking heads appeared to finally grown tired of obsessively dissecting political updates.

The EGX’s slump yesterday was a natural reflection of global market conditions, Rasmala Egypt Asset Management Chairman Ahmed Abu El Saad told Hona Al Asema’s Lamees Al Hadidi. El Saad noted that traders have also been waiting for Egypt to heed the IMF’s advice to ease interest rates, which further spurred the sell-off streak.

This will likely be the year in which investors in Egypt’s stock market reap the benefits of the reform program, Abu El Saad said, reminding viewers that Egypt is pressing ahead with planned policy adjustments that will eventually see interest rates decline, making the bourse highly attractive to investors. He also said that the timing of Egypt’s planned eurobond issuance is opportune, since it is scheduled to happen before an expected hike in US interest rates.

Lamees then schooled her viewers on the relationship between US fiscal policies and the performance of Egypt’s market, stressing that the best way forward is to continue encouraging private sector growth in Egypt (watch, runtime: 31:03).

Yahduth fi Masr’s Sherif Amer also zoned in on the EGX with financial analyst Mostafa Adel, who said the EGX is likely to begin recovering by the end of the week, as things ease up for the global market. (Want to share that crystal ball, buddy?) He also warned that an interest rate hike across the pond would have an adverse effect on appetite for the EGP and other EM currencies (watch, runtime: 3:00).

Back on Hona Al Asema, Lamees was all smiles over President Abdel Fattah El Sisi’s “strong personal relationship” with Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed. The host aired footage of the two leaders taking a stroll and grabbing a bite together at an Abu Dhabi mall (watch, runtime: 6:53).

Taking notes from his better half, Kol Youm’s Amr Adib played the same video and speculated about the conversation, guessing that El Sisi and bin Zayed were likely discussing US relations, the Palestinian issue, and the latest in the Qatar Smackdown (watch, runtime: 4:50).

Over on Masaa DMC, Osama Kamal discussed Egypt’s Mercosur trade liberalization agreement with Export Development Authority chief Sherine El Shorbagy, who said the agreement has been in the works for 10 years and will go a long way in recalibrating Egypt’s trade balance with the Mercosur countries. El Shorbagy noted that Egypt imports around USD 2.5 bn worth of goods from Brazil, but only exports around USD 150 mn to the South American country. She said local exporters should take advantage of the FTA, noting that fertilizers and wood products in particular have a good chance of successfully penetrating these markets (watch, runtime: 10:23).

We love Japan, but…Filling in for Tamer Amin on Al Hayah Al Youm was Nahawand Serry, who continued the inexplicable, wall-to-wall coverage of the Education Ministry’s flirtation with Japanese-style schools. Deputy Education Minister Hend Galal says hiring for the schools will begin by the end of this month (watch, runtime: 5:42).

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.