THIS EVENING: New 25% certificates from Banque Misr, NBE + PMI contraction softened in December + Pachin gets another suitor
Good afternoon, friends, and welcome to what has shaped up to be a brisk news day, suggesting the new year lull is good and well behind us.
PSA- Private sector + EGX will be off on Sunday: The private sector will be off next Sunday, 8 January in observance of Coptic Christmas, the Manpower Ministry said in a statement today. The EGX will also be closed, the bourse said in a separate statement, after the Central Bank of Egypt announced yesterday that the nation’s bank will be taking the day off. Prime Minister Moustafa Madbouly had announced the day would be a national holiday earlier this week.
THE BIG STORIES TODAY
#1- State-owned Banque Misr and the National Bank of Egypt (NBE) rolled out one-year 25% savings certificates, according to statements from the two banks (here and here (pdf). The two banks previously introduced one-year, 18% certificates of deposit (CDs) last year on the back of the first EGP devaluation in March, which were suspended months later on the back of high costs incurred by the banks.
EGP WATCH- The EGP fell today to breach the 26 / USD 1 mark at some banks. The currency has now fallen by over 30% against the greenback since late October when the central bank moved to a durably flexible exchange rate, and by over 66% since last March’s devaluation.
#2- Private sector wraps up the year with softer contraction: Business activity in Egypt’s non-oil private sector continued to contract for the 25th consecutive month in December, albeit at a softer pace than previous months, according to S&P Global’s purchasing managers’ index (pdf). The PMI index rose to 47.2 in December from 45.4 a month earlier, but remained below the 50.0 mark that separates growth from contraction. The continued contraction came on the back of a surging inflation, a weaker EGP and import restrictions.
#3- Everyone wants a piece of Pachin: Compass Capital has become the latest in a long list of companies to express interest in acquiring a majority stake in Paint and Chemical Industries (Pachin) according to a disclosure to the EGX (pdf) from the Financial Regulatory Authority today. Compass has submitted a non-binding offer to purchase between 51-90% of Pachin at EGP 30 a share, becoming the fifth company to express interest in acquiring the regional paint distributor since mid-2022.
THE BIG STORY ABROAD
Picking up where we left off this morning, the US House Speaker elections are broadly leading the conversation in the international press this afternoon. The story continues to be on the front pages of the Financial Times, the Wall Street Journal, and Reuters.
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Qatar has its eye on the Ramses Hilton: Qatar’s Al Kuwari Group has submitted an offer to acquire the Ramses Hilton hotel for USD 320 mn.
- Gov’t is ready to pull the trigger on listings of shares in four firms: The Madbouly government is ready to offer shares in four state-owned firms on the EGX and has eight more listings in the pipeline as it looks to reboot its privatization program.
- GlobalCorp closed an EGP 1.1 bn issuance of securitized bonds on 29 December as part of a larger EGP 5 bn program.
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NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. The four-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run in our publications. Those who successfully complete the program will then be offered full-time positions on staff.
During the program you will learn:
- The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
- Business and finance for non-finance people: Whether it's industry jargon, key concepts, or simply how to read a an income statement;
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Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.
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???? CIRCLE YOUR CALENDAR-
The key news triggers as we start a new month:
- Inflation figures for December will be released on Tuesday, 10 January.
- The national dialogue will kick off on Saturday, 14 January.
- The government’s fuel pricing committee will meet this month to decide quarterly fuel prices.
- Global movers and shakers will descend on Davos for the World Economic Forum’s annual meetings on 16-20 January.
- The IMF will publish an updated World Economic Outlook towards the end of the month.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
☀️ TOMORROW’S WEATHER- Expect a sunny day tomorrow with a daytime high of 19°C tomorrow and a nighttime low of 10°C, according to our favorite weather app.