CAIRO: No more browsing from site to site, view the top business news stories on July 27 here:
Egypt’s stock markets jump on IMF loan talks
(Reuters) Egyptian stocks surged on Wednesday on news that Cairo was close to agreeing an International Monetary Fund (IMF) lending program, while weak oil prices pulled down most bourses in the Gulf.
The main Egyptian equities index climbed 5.0 percent to 7,915 points, its biggest daily gain since mid-March, in the market’s heaviest trade since mid-April.
Blue chips favored by foreign investors outperformed with Commercial International Bank, the largest listed lender, jumping 5.7 percent and Global Telecom up 6.1 percent.
Financial firm EFG Hermes, which could benefit from handling an inflow of foreign investment if the IMF loan stabilizes Egypt’s struggling balance of payments, rocketed 10.7 percent.
Ibrahim al-Nimr, head of technical analysis at Cairo’s Naeem Holding, predicted the index would break above 8,000 points when the signing of the IMF loan became certain.
“This may in turn prompt some profit-taking at those levels, but even then we expect certain sectors to continue riding the bull wave, especially banks and real estate.”
The government said it was seeking $7 billion annually from the IMF over three years. Prime Minister Sherif Ismail ordered the central bank governor and minister of finance to complete negotiations for the program with an IMF team that would visit Egypt in the next few days.
Egypt’s Pioneers Holding plans $80 mln capital increase
(Reuters) – Egypt’s Pioneers Holding (PHC) plans to increase its issued capital by 708 million Egyptian pounds ($80 mln) by offering one bonus share for every four currently held per shareholder, the company said on Wednesday.
The increase will lift the market research and brokerage services company’s issued capital to 3.54 billion Egyptian pounds, from 2.83 billion pounds and will be financed through retained earnings, Pioneers said in a statement via the Cairo stock exchange.
The bonus shares will be issued at the nominal value of five pounds per share for existing shareholders, said Waleed Mohamed Zaki, head of investor relations.
“The shares are due to be distributed starting from Thursday, Aug. 11, after approval from the listing committee,” Pioneers said.
Pioneers specializes in market research and brokerage services but also has investment arms in real estate, industry and financial services. ($1 = 8.8799 Egyptian pounds)
Egypt Saudi Development Fund delegation to talk project of furniture, leather manufacturing cities
Egyptian Minister of International Cooperation Sahar Nasr said that the ministry will meet with a delegation from Saudi Development Fund to discuss the projects of establishing a city for furniture manufacturing and another city of leather manufacturing, Youm7 reported Wednesday.
The delegation arrived in Cairo Wednesday to discuss certain development projects with $200 million in soft loans.
IMF confirms Egypt funding request, will send mission to Cairo
(Reuters)-The International Monetary Fund confirmed on Tuesday that Egypt has asked it for financial support program and said an IMF staff mission will visit Cairo for about two weeks starting July 30.
“We welcome this request, and look forward to discussing policies which can help Egypt meet its economic challenges. Our goals are to help Egypt return to economic stability and to support strong, sustainable and job-rich growth,” Masood Ahmed, the IMF’s Middle East director, said in a statement.
Egypt intensifies crackdown on dollar black market traders
The public funds police department intensified its crackdown on local money changers, a day after the Egyptian pound weakened on the black market reaching over 13 EGP against the US dollar, Youm7 reported.
Plainclothes police personnel were deployed in the vicinity of major exchange offices to arrest informal traders, security source told Youm7. Egypt depreciated the pound for the third time this year after the nation’s foreign reserves tumbled and the currency fell to an all time record in black market trading.
Investment minister to sign $10 b worth development projects contracts
Investment Minister Dalia Khourshid will sign on Thursday the contracts of 17 new development projects worth 90 billion EGP ($10.1 b) in the north coast, Youm7 reported.
Governor of Mediterranean city of Marsa Matrouh said the signing comes after the government have studied and completed the legal procedures required.
The projects will be held on land allocated by the General Authority for Investments and Free Zones (GAFI.)
Mexican business delegation in Cairo late Sep.: minister
Representatives of member companies at the Arab Mexican Chamber of Industry and Commerce (CAMIC) will visit Cairo late September to promote bilateral business relations with Egypt, Youm7 reported Wednesday.
The delegation will attend a joint business forum that will focus on “the available investment opportunities and the most important advantages and incentives enjoyed by the Egyptian market,” Minister of Trade and Industry Tarek Qabil was quoted by Youm7 following a meeting with Mexico’s Ambassador to Cairo.