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Monday, 31 October 2022

More on Fed week + EFG Hermes lands bookrunner job on Riyadh Cables

The Fed will likely go for another aggressive hike this week — but what if consumer spending proves too resilient? Economists are penciling in another jumbo 75-bps hike from the US central bank when it meets on Tuesday and Wednesday as it looks to tamp down on record high inflation. But pandemic-era stimulus measures have given businesses and households an unusually fat savings buffer, meaning higher rates may not deter them from spending as they head into tighter times, the Wall Street Journal reports. The Fed may have to raise rates higher and for longer in order to have the desired impact. “For now, the consumer is too strong for comfort,” the managing director of one market intelligence firm told the WSJ.

CLOSER TO HOME- IPO Watch: Our friends at EFG Hermes were appointed as bookrunner for Riyadh Cables Group Company’s IPO on the Saudi stock exchange. The company wants to raise around USD 400 mn by selling a 22% stake to investors. (Intent to float, pdf)


  • Saudi Arabia is helping to bail out Credit Suisse: The Saudi National Bank is set to become Credit Suisse’s single biggest shareholder as it steps in to help rescue the teetering Swiss bank which is trying to raise CHF 4 bn as part of a restructure. (Financial Times | Bloomberg)
  • Oil + gas windfall profits aren’t sitting well with Western politicians:
    Leading global oil and gas firms have spent USD 20 bn more on dividends and share buybacks than on capital spending, triggering criticism from politicians over the volume of windfall profits being passed on to investors. (Bloomberg)
  • Qatar wants to explore for gas in Lebanese waters: Qatar Energy has its eyes on a 30% stake on an offshore gas exploration block in Lebanon, with Doha currently in talks with energy giants TotalEnergies and Eni over the stake. (Bloomberg)




+0.3% (YTD: -7.1%)



Buy 24.00

Sell 24.14



Buy 23.80

Sell 23.90


Interest rates CBE

13.25% deposit

14.25% lending




-0.7% (YTD: +3.1%)




-0.8% (YTD: +3.8%)




-0.5% (YTD: +4.8%)


S&P 500


+2.5% (YTD: -18.1%)


FTSE 100


-0.4% (YTD: -4.6%)


Euro Stoxx 50


+0.2% (YTD: -16.0%)


Brent crude

USD 95.77



Natural gas (Nymex)

USD 5.68




USD 1,644.80




USD 20,651

-1.0% (YTD: -55.3%)


The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 1.3 bn (9.2% above the 90-day average). Foreign investors were net buyers. The index is down 7.1% YTD.

In the green: Alexandria Containers and Cargo Handling (+7.7%), Egypt Kuwait Holding-EGP (+4.4%) and Juhayna (+4.1%).

In the red: Qalaa Holdings (-3.3%), Ezz Steel (-2.5%) and Housing and Development Bank (-2.3%).

Asian markets are mixed this morning, with Chinese shares in the red and most other bourses in the region in the green. The Nikkei (+1.6%), the Kospi (+1.0%) and the ASX (+0.6%) are all seeing gains this morning. European shares are expected to see early gains later this morning while Wall Street will open lower.

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.