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Sunday, 2 October 2022

EKH announces USD 20 mn share buyback + EFG Hermes tops the brokerage league table in September

Egyptian Kuwait Holding (EKH) will spend USD 20 mn buying back around 1.5% of the company (16.9 mn shares) over the next year in a bid to buoy its share price, the company said in disclosures to the EGX (here, pdf and here, pdf) on Wednesday. The company’s share price rose 3.0% on Thursday.

Arresting the decline: The company’s share price has fallen almost 18% since March, despite reporting two consecutive quarters of record earnings during the first half of the year on the back of rising fertilizer prices. Its net income rose 60% y-o-y to USD 72.4 mn during 2Q 2022, while revenues rose 53% y-o-y to USD 284.8 mn.

It’s not the only one looking to prop up its share price: Edita and e-Finance are among several companies to have announced buyback programs in recent weeks. Inflationary pressure, rising interest rates in western economies, and global market volatility have all contributed to a risk-off from emerging markets. The benchmark index fell to its lowest level since November 2016 earlier this year, and is currently down nearly 18% YTD.

Advisors: Al Ahly Pharos will execute the buyback program.

ALSO IN CAPITAL MARKETS- EFG Hermes once again topped the EGX’s brokerage league table in September, with a market share of 20.4%, according to figures from the EGX (pdf). Rounding out the top five were CI Capital (6.4%), Mubasher (4.5%), Pioneers Securities (4.0%), and Prime Securities (3.3%).

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