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Sunday, 15 December 2019

The Market Yesterday

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Pharos Holding -

EGP / USD CBE market average: Buy 16.08 | Sell 16.20
EGP / USD at CIB: Buy 16.08 | Sell 16.18
EGP / USD at NBE: Buy 16.07 | Sell 16.17

EGX30 (Thursday): 13,358 (-0.5%)
Turnover: EGP 476 mn (35% below the 90-day average)
EGX 30 year-to-date: +2.5%

THE MARKET ON THURSDAY: The EGX30 ended Thursday’s session down 0.5%. CIB, the index’s heaviest constituent, ended up 0.2%. EGX30’s top performing constituents were Orascom Construction up 1.1%, Oriental Weavers up 1.0%, and EFG Hermes up 0.9%. Thursday’s worst performing stocks were Sidi Kerir Petrochemicals down 5.8%, Juhayna down 4.8% and Qalaa Holdings down 2.3%. Market turnover was EGP 476 mn, and foreign investors were the sole net buyers.

Foreigners: Net Long | EGP +63.5 mn
Regional: Net Short | EGP -36.8 mn
Domestic: Net Short | EGP -26.8 mn

Retail: 42.2% of total trades | 40.6% of buyers | 43.8% of sellers
Institutions: 57.8% of total trades | 59.4% of buyers | 56.2% of sellers


“Meaningful” monetary easing could unlock corporate capex lending in 2020: The Central Bank of Egypt’s (CBE) monetary easing cycle, which began in 2019 and is expected to continue in 2020, should spur corporate capex lending next year and fuel non-interest income for Egypt’s banks, Pharos Holding says in its banking sector outlook for next year. The recently-changed accounting treatment for bank and corporate earnings from holdings of government debt will likely also have a more pronounced impact on banks’ profit growth next year, the firm says. Pharos points to a potential reduction of the CBE’s reserve requirement ratio (RRR) as a key upside for the sector, which would prop up profitability. Downside risks Pharos identifies include banks’ margins seeing higher than expected compression as a result of the rate cuts and tightened CBE regulations, and a potential delay in the recovery of the business environment leading to an increase in non-performing loans. Tap or click here for the full report (pdf).


WTI: USD 60.07 (+1.50%)
Brent: USD 65.22 (+1.59%)

Natural Gas (Nymex, futures prices) USD 2.30 MMBtu (-1.37%, January 2020 contract)
Gold: USD 1,481.20 / troy ounce (+0.60%)

TASI: 8,005.77 (-1.57%) (YTD: +2.29%)
ADX: 5,036.46 (-0.07%) (YTD: +2.47%)
DFM: 2,722.43 (+0.33%) (YTD: +7.62%)
KSE Premier Market: 6,770.77 (+0.31%)
QE: 10,256.93 (-0.80%) (YTD: -0.41%)
MSM: 4,019.67 (+0.14%) (YTD: -7.03%)
BB: 1,567.41 (+0.79%) (YTD: +17.21%)

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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