29 Jul 2021

MOPCO Among New Additions to EGX30 in Semi-Annual Index Review

News Image

Misr Fertilizers Production Company (MOPCO) has been added to the EGX30 index in a semi-annual index review carried out by the Egyptian Exchange (EGX) on Wednesday.

Cairo for Investment and Real Estate Development (CIRA), Speed Medical Company, Raya Holding for Financial Investments, Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) and Egyptian Resorts Company were also added to the blue-chip index.

On the other hand, Orascom Financial Holding (OFH), Orascom Investment Holding (OIH), Export Development Bank of Egypt (EDBE), Edita Food Industries, CI Capital Holding for Financial Investments, Emaar Misr and SODIC were excluded from the EGX30.

The new changes will be effective as of August 1, 2021.

Last week, the Egyptian Exchange (EGX) approved a new criterion for listing companies on the EGX30's index.

Per the new criteria, the EGX has set the maximum number of companies from the same sector on the EGX30 at five, and the company's issued capital is required to be no less than EGP 100 million ($6.4 million).

The bourse said that the new methodology comes in light of the continuous development of its indicators' methodologies and their compatibility with international best practices.


Business

Swvl to Go Public Through Merger With SPAC Queen's Gambit

Dubai-based  Swvl said yesterday that it plans to go public through a merger with female-led special-purpose acquisition company (SPAC) Queen's Gambit Growth Capital.

The deal implies an equity value of around $1.5 billion, which will make Swvl the largest Middle East-based unicorn to be listed on New York's Nasdaq stock exchange. The combined public company will be named Swvl Holdings Corporation.

Swvl shareholders are expected to own about 65 percent of the merger, the company said.

The bus-hailing app did not provide an expected closing date for the merger.

The mass-transit company, which was founded in 2017, currently operates in six markets in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region, namely Egypt, Kenya, Pakistan, Jordan, the UAE and Saudi Arabia.

"Having established a leadership position in key emerging markets, we believe Swvl is ready to capitalize on a truly global market opportunity," said Victoria Grace, founder and CEO of Queen's Gambit.

Banque Misr, BM Lease Ink $44.6 Mn Worth Islamic Financing Contract for Bonyan

Banque Misr and BM Lease have signed a medium-term Islamic financing partnership contract to fund a finance lease contract for Bonyan Development and Trade worth EGP 700 million ($44.59 million).

The duration of the partnership contract is seven years, Banque Misr said in a statement released yesterday.

The bank's contribution to the contract is 93 percent, equivalent to EGP 650 million ($41.4 million), while BM Lease will contribute with the remaining 7 percent at about EGP 50 million.

The finance leasing contract will be utilized in completing the rest of the phases of the Walk of Cairo (WOC) project, Egypt's highly anticipated pedestrian high-street in Sheikh Zayed, in addition to paying the obligations of Bonyan.

News Image

(courtesy of Trella's website)

ExxonMobil Collaborates With Trella to Boost Freight Industry in Egypt

ExxonMobil Egypt announced on Wednesday the signing of a cooperation agreement with Cairo-based trucking marketplace Trella with the aim of contributing to improving the productivity of drivers and the efficiency of freight fleets through the use of ExxonMobil's high-performance diesel engine oil Mobil Delvac, specifically designed to enhance the performance of trucks and reduce fuel costs.

The agreement coincides with ExxonMobil's intention to provide new digital solutions and support young innovators, even beyond the boundaries of the energy industry, the company said in a press release.

"We're very excited about our collaboration with ExxonMobil Egypt, unlocking new ways to build an ecosystem that supports drivers and surpasses the status-quo of logistics. Throughout this support, we'll aim at expanding and empowering a network of well-utilized trucks all over Egypt," said Omar Hagrass, Trella's CEO.

Banque Misr to Set Up $35.1 Mn Commercial Real Estate Investment Fund in Q4

Banque Misr is planning to launch a real estate investment fund worth EGP 550 million ($35.1 million) in the fourth quarter of 2021 to invest in commercial real estate projects in Egypt in partnership with real estate developers, Al Mal reported citing insiders at the bank.

The fund is pending the approval of the Financial Regulatory Authority (FRA), which is currently examining the fund's incorporation documents and is expected to give its approval by the fourth quarter of 2021, the sources said.

Banque Misr is also planning to set up another real estate investment fund for residential real estate in the near future, upon assessment of the first fund's results.

Banque du Caire is aiming to acquire a 15-20 percent stake in Banque Misr's real estate investment fund, said Banque du Caire's Head of Investments Mohamed Ragai.

Contact to Launch E-Payment Arm in 1 Month

Contact Financial Holding aims to launch its e-payment arm within a month after finishing the incorporation procedures, Contact's CEO Saeed Zaatar said on the sidelines of a conference.

The new service will be available initially in 250 branches and points of sale, which would take six months as of the launch date to be available at such outlets, added Zaatar.

Contact is currently finalizing procedures for getting a license for its e-payment project in partnership with Banque Misr, which will be established with an initial capital of EGP 50 million ($3.2 million).

Contact aims to expand its business in rural areas.

MEVAC for Vaccines Eyes $115 Mn Investments to Build 3 Vaccine Manufacturing Facilities in Egypt

MEVAC for Vaccines plans to inject new investments worth EGP 1.8 billion ($114.65 million) during the next three years to establish three factories for the production of veterinary and human vaccines, CEO of the company Magdy El-Sayed said. 

The company also plans to build a 100-feddan (103.78 acres) farm to produce eggs that will be used in manufacturing vaccines, El-Sayed added.

This came during a meeting between Mohamed Abdel-Wahab, the executive director of the General Authority for Investment and Free Zones (GAFI), and the CEO of the US-based Kemin Chris Nelson.

Kemin, one of the largest companies in the field of vaccine manufacturing, is the majority shareholder of MEVAC and has more than 22 factories in several countries.

FAB Egypt to Provide Real Estate Financing Services to Tatweer Misr's Customers

Tatweer Misr, a real estate developer, has signed a cooperation agreement with First Abu Dhabi Bank in Egypt (FAB Egypt), where the latter will provide real estate financing services worth up to EGP 15 million with competitive interest rates and payment periods of up to 15 years for new and existing customers of Tatweer.

The agreement came in light of Tatweer Misr's strategy to boost sales and enable customers to benefit from real estate financing services.

The FAB will provide a real estate financing of up to 85 percent of the value of the ready-to-deliver residential units.

Furthermore, the agreement will provide the customers with the financing of up to 70 percent of the ready-to-deliver units in the company's coastal home projects worth up to EGP 7.5 million and a payment period of up to ten years.

Per the agreement, the customers will also obtain financing to finish the delivered units of up to 40 percent of the unit's value.

Manzzeli Eyes Exporting Furniture to Arab Nations in 2024

CEO and Founder of the e-commerce platform Manzzeli Ahmed Amin said that the platform plans to start exporting its products to Arab countries in 2024.

Manzzeli is the first hybrid Egyptian platform that combines e-marketing and traditional marketing, Amin told reporters in a virtual briefing, adding that the market value of the platform has increased 15 times during the past two years.

Orders made on the platform, which specializes in furniture and home accessories, have increased five times over the past 18 months, and they are planned to be boosted by 40 times over the next five years, Amin said.

Economics

Oil See slight Gains After Sharp Drop in US Inventories

Oil prices closed near $75 a barrel on Wednesday, after data showed a larger-than-expected drop in crude stocks in the US, which refocuses the market on tight supplies rather than an increase in COVID-19 infections.

International benchmark Brent crude rose by 26 cents, or 0.4 percent, to close at $74.74 a barrel, after posting on Tuesday its first decline in six days.

US West Texas Intermediate (WTI) crude gained 74 cents, or 1 percent, to settle at $72.39 a barrel.

The US Energy Information Administration said oil stocks fell by 4.1 million barrels in the week to July 23. Gasoline and distillate fuel stocks also dropped.

Federal Reserve Keeps Interest Rates Near Zero

The Federal Reserve left interest rates and monetary policy unchanged on Wednesday and said the economy has not achieved a full economic recovery yet.

"The path of the economy continues to depend on the course of the virus," the central bank said in a statement, adding that while vaccinations are helping to limit the virus and its impact on the economy, the risk to the economic outlook remains.

However, the Federal Reserve reiterated that the economy is making progress despite the pandemic.

Egypt News

News Image

Electricity Minister Mohamed Shaker

Electricity Minister Heads to Russia to Greenlight Manufacturing of Needed Equipment for Dabaa Nuclear Plant

Egyptian Electricity Minister Mohamed Shaker headed yesterday to Russia, at the head of a high-level technical delegation, to attend the inauguration ceremony of manufacturing the first long-term equipment for the Dabaa nuclear power plant project.

Shaker is scheduled to discuss with Alexey Likhachev, director-general of State Atomic Energy Corporation (Rosatom), the progress of the nuclear power plant and its planned future work, according to a ministry statement released yesterday.

The minister will also visit a group of Russian companies responsible for manufacturing long-term equipment for the Dabaa nuclear plant, including Atomenergomash, which will manufacture the reactor pressure vessel.

The power plant, located in Matrouh governorate on the Mediterranean coast, will house four nuclear power reactors that generate 1,200 megawatts each.

The Dabaa plant is a part of a $25 billion deal signed in 2015 between Rosatom and Egypt.

In March, Likhachev said that Rosatom is planning for the full-scale construction of the nuclear plant to begin in 2022, with the first unit expected to be completed by 2026.

Egypt, Spain Probe Cooperation in Rail Transport

Egyptian Minister of Transport Kamel Al-Wazir, discussed with Ramón Gil Casares, the Spanish ambassador in Cairo, boosting cooperation in various fields of transport.

The pair discussed future cooperation with the National Authority for Tunnels (NAT) in a number of projects such as the duplication, electrification and signal development in the Qalioub-Menouf-Tanta lines with soft funding from the Spanish government.
 
They also reviewed the Japanese Mitsubishi company and the Spanish CAF alliance, in cooperation with the NAT, for modernizing 23 trains for the first line of the Cairo Metro and providing the necessary financing for the project.

The minister stated that the ministry has a plan to modernize the trains of the first and second lines of Cairo Metro, as 20 air-conditioned trains are currently operating in the first line, 55 new air-conditioned trains are being purchased for the first line, and four air-conditioned trains are currently operating on the second line.

Sudan Not Ready to Return to GERD Negotiations With Ethiopia's Same Methodology: Sudanese Irrigation Minister

Sudanese Minister of Irrigation and Water Resources Yasser Abbas reiterated yesterday that his country is not ready to return to the Grand Ethiopian Renaissance Dam (GERD) talks if Ethiopia sticks to its same stagnant manner of negotiations.

Sudan fully believes that the only solution in the GERD dispute is through serious negotiations that preserve the three countries' interests.

Abbas added that obtaining information and data regarding the filling and operation of the GERD is a legal right, not a grant, in accordance with the international law for transient waters, adding that the information and data achieved by the technical team working at the Ministry of Irrigation are better than those sent by the Ethiopian Prime Minister to Sudan on the second filling.

"The exchange of information between Sudan and Ethiopia will not affect the operation of the GERD and will not pose a threat to the progress of the construction, despite its importance to the security of Sudan," Abbas said.

He added that the lack of agreement on the filling and operation of the GERD threatens half of Sudan's population, calling for a change in Ethiopia's previous negotiation methodology and giving a greater role to the international quartet to reach a binding and legal agreement.

Earlier this month, Ethiopia announced that it had finalized the second filling of the Grand Ethiopian Renaissance Dam's (GERD) reservoir, a move that had angered Egypt and Sudan.

Ethiopia did not reveal the amount of water that had been diverted into the reservoir.

After Ethiopia's announcement, Sudan's irrigation ministry expressed its "constant" rejection of the unilateral second filling of the GERD.

News Image

(Courtesy of Cabinet Facebook page)

Egypt, South Sudan Sign MoU to Boost Trade Cooperation

Egypt's Trade and Industry Minister Nevine Gamea and her South Sudanese counterpart Cole Etienne signed a memorandum of understanding (MoU) to boost joint trade and industry cooperation between both countries, Cabinet Spokesperson Nader Saad stated yesterday.

In the presence of Egypt's Prime Minister Mostafa Madbouly and South Sudan's Vice President for Economic Affairs James Wani Igga, another MoU was signed by the irrigation ministers from both countries to study the risk of flooding in the Bahr El Jebel sub-basin in South Sudan.

Meanwhile, Egyptian President Abdel Fattah El-Sisi met Igga yesterday, where the former welcomed the first session of the joint higher committee between the two countries in Cairo.

The president also affirmed Egypt's determination to continue providing technical support to South Sudan at all levels.

Igga praised the role of Egypt and the efforts it makes in support of the stability of the situation in the region and South Sudan.

El-Sisi and Igga also exchanged views on the development of several regional issues of common interest, especially the GERD, where El-Sisi affirmed Egypt's stance to reach a legally binding agreement regarding the rules of the filling and operation of the dam in a manner that meets the interests of all parties.

Stock Market

EGX30 Inches Up 0.06%

The blue-chip EGX30 index rose slightly by 0.06 percent to close at 10,769.22 points on Wednesday, extending its gains for a third consecutive session.

The EGX30's turnover hit EGP 373.89 million ($23.81 million), and its heaviest constituent, Commercial International Bank (CIB), lost 0.54 percent to EGP 56.83.

Top-performing stocks included CI Capital Holding for Financial Investments, which rose 3.58 percent to EGP 3.47 ($0.22), Ibnsina Pharma, which went up 2.92 percent to EGP 3.88, and Orascom Investment Holding (OIH), which gained 1.46 percent to reach EGP 0.21.

Lagging stocks were Alexandria Mineral Oils Company, which fell 2.50 percent to EGP 3.51 ($0.22), Telecom Egypt, down 1.20 percent to EGP 14.01, and Ezz Steels, which lost 0.52 percent to reach EGP 13.52.

GB auto saw no change at EGP 3.87 ($0.25).

The broader EGX70 EWI index rose 1.96 percent to close at 2,714.87 points, while the EGX100 EWI gained 1.54 percent, closing at 3,696.79 points.

Net sales by Egyptian investors registered EGP 37.64 million ($2.40 million), while net purchases by foreign and Arab investors came in at EGP 27.25 million and EGP 10.39 million, respectively.

World

Pfizer Says Its COVID-19 Vaccine Provides Protection for at Least 6 Months

The Pfizer COVID-19 vaccine remains powerfully protective for at least six months after the second dose, according to company data released yesterday.

Protection against symptoms of the coronavirus is at 91 percent during the six months and 97 percent against severe COVID-19, the study found.

The data -- based on a 44,000-person study -- comes amid Pfizer's and its German partner BioNTech's plans to seek authorization for booster doses.

Earlier this week, a study conducted by researchers at disease control authorities in Jiangsu province in China, Sinovac and other Chinese institutions showed that antibodies produced after receiving a second dose of Sinovac Biotech's COVID-19 vaccine fade below a key threshold after around six months for most recipients.

Wildfires Break Out in North Lebanon Killing 1 Person

A wildfire broke out in pine forests in Al-Qoubaiyat village north of Lebanon in the Akkar governorate, reaching residential areas.

The blazes have spread to other areas, including Oudine valley and Kafrton village, where a firefighter was killed while putting out the fire in the latter, according to the Lebanese National News Agency (NNA).

The flames have destroyed thousands of perennial pine trees in one of the worst wildfires this year, as described by NNA.

The Lebanese president gave directions to the army and civil defense to exert all the possible efforts to extinguish the fire and prevent it from reaching homes.

Furthermore, the president called on Cyprus' support to aid the country in extinguishing the fires if they spread to other areas.

Facebook Revenue Sees Its Fastest Growth Since 2016 in Q2 2021

Facebook posted its fastest revenue growth since 2016, as it soar 56 percent year on year in the April-June period of this year to $29.08 billion.

Meanwhile, earnings per share came in at $3.61, beating expectations of $3.03, according to Refinitiv.

Facebook said it had 3.51 billion monthly users across its family of apps in the second quarter of this year, up from 3.45 billion in the first quarter.

Regarding guidance for the second half of the year, Facebook said it expects "year-on-year overall revenue growth rates to slow significantly on a sequential basis with periods of increasingly strong growth."

On Tuesday, Google-owner Alphabet reported a record high in quarterly revenue, rising 61.6 percent year on year to $61.88 billion in the second quarter of this year.

Boeing Returns to Profitability in Q2 2021

Boeing turned to profitability during the second quarter of the year, for the first time after six consecutive quarters of losses, driven by a surge in deliveries of commercial jetliners.

The US planemaker reported profits of $567 million during the period from March to June, compared with a net loss of $2.96 billion in the corresponding period last year.

Revenue also increased by 44 percent to about $17 billion during the second quarter of 2021, up from $11.8 billion in a year earlier.

Meanwhile, the company dropped its layoff plan for the year, saying it will keep its workforce at its current level of approximately 140,000 employees by the end of 2021, Boeing CEO Dave Calhoun said in a message to employees, after he previously announced plans to reduce it to about 130,000.

Sports

Olympics: Egypt's Football Team Reach Quarters With 2-0 Win Over Australia

Egypt's U23 football team made it to the quarterfinal of the Tokyo Olympics after beating Australia 2-0.

Egypt needed a win to stand a chance of reaching the knockout phase, with their attacking approach paying dividends as striker Ahmed Rayan put them ahead on the stroke of halftime after being set up by the impressive Ramadan Sobhi.

Substitute Ammar Hamdi ensured the victory five minutes from time, slotting home on the rebound after a shot by fellow substitute Nasser Mansi was fumbled by the keeper into his path.

The Pharaohs finished second in Group C with four points, pipping Argentina to the quarters via a better goal difference. Spain topped the group on five points, with Australia lying at the bottom on three.

Egypt set up a mouthwatering quarter-final clash against Brazil. Both sides met at the 2012 London Games, with Brazil narrowly securing a 3-2 group-stage victory.

On their previous appearance in 2012, Egypt also reached the last eight before suffering a 3-0 loss to Japan. 

Top Headlines of the Week

Arab Markets
Egypt EGX30 10,769.22 +0.06%
KSA TASI 10,933.73 +0.16%
UAE ABU DHABI ADX 7,243.78 +1.02%
UAE DUBAI DFM 2,751.70 -0.35%
World Markets
US Dow Jones IA 34,930.93 -0.36%
NASDAQ-100 14,762.59 +0.70%
S&P 500 4,400.64 -0.02%
UK FTSE 100 7,016.63 +0.29%
Germany DAX 15,570.36 +0.33%
France CAC 40 6,609.31 +1.18%
Japan Nikkei 225 27,777.62 +0.71%
China HANG SENG INDEX 26,156.10 +2.68%
Currencies
US Dollar 15.65 15.75
Euro 18.47 18.59
Sterling 21.71 21.85
Saudi Riyal 4.17 4.20
UAE Dirham 4.26 4.29
Kuwaiti Dinar 51.98 52.44
Swiss Franc 17.10 17.21
Commodities
Oil Brent USD/bbl. 75.00 +0.35%
Wheat USD/bu.Mar 2020 693.75 +0.73%
Gold USD/t oz. 1,815.16 +0.45%
Gold Egypt LE/ oz. 28,492.61 +0.73%
Silver Egypt LE/ oz. 395.83 +1.39%

Delta Digest is a daily newsletter that primarily provides comprehensive coverage of macroeconomic and market developments in Egypt, the region and the world. While news stories comprise the largest portion of our content, it also includes other quick reads such as analytical reports and statistics.

Delta Digest is sent out in the early morning on all working days -- Sunday through Thursday -- except for bank holidays. To subscribe to our English newsletter, please click on the link below (Delta Digest) it will take no more than a few seconds and the service is free of charge. You can also send us suggestions and questions by e-mail (contact us).

The content of the newsletter is delivered without any responsibility on our part and the opinions expressed are those of the quoted sources. To share Delta Digest with your friends click here (Facebook) (Twitter). To invite your friends to Delta Digest click here.