UPDATE: Egypt’s business digest Aug. 8: Electricity Ministry announces new tariffs part of subsidy-cut plan; EGX closes at collective rise; gains 1.3 bln EGP
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EGX closes at collective rise; gains 1.3 bln EGP

The Egyptian stock market closed Monday at a collective rise to all indices, powered by local and foreign purchases, while Arabs were mostly selling.

The Market Capitalisation gained 1.3 billion EGP ($147 million) to close at 419,116 billion EGP.

The main index EGX30 increased by 0.6 percent; EGX50 rose by 0.53 percent; EGX30 jumped by 58 percent; EGX70 increased by 0.28 percent and EGX100 rose by 1.02 percent.


Yields mixed at Egypt’s T-bond auction

(REUTERS): Yields rose on Egypt’s 1-1/2-year zero-coupon bond and on its three-year Treasury bond but dropped on the seven-year bond at an auction on Monday, data from the central bank showed.

The average yield on the zero-coupon bond rose to 15.964 percent from 15.329 percent when it was last sold, on June 27.

The yield on the three-year bond also rose to 16.389 percent from 15.521 percent at the last auction, on June 27.

The yields on the seven-year bond dropped to 17.353 percent compared with 17.521 at the last similar sale, held on July 25.


MIDEAST STOCKS-Qatar, Egypt rise to multi-month highs; petchems support Saudi – Reuters

(Reuters): Stock markets in Qatar and Egypt closed at multi-month highs on Monday on the back of firm global bourses, while Saudi Arabia’s stock market was supported by a recovery in oil prices.

Qatar’s index rose 1.2 percent to 10,920 points, a nine-month high. Vodafone Qatar jumped 6.0 percent in unusually heavy trade and the largest listed stock, Qatar National Bank, added 2.3 percent.

Abu Dhabi’s index reversed an early decline to add 0.1 percent as some mid-cap shares advanced. Abu Dhabi National Energy Co surged 8.0 percent.

First Gulf Bank rose 0.4 percent but most other large-cap lenders lagged, with Abu Dhabi Commercial Bank dropping 0.6 percent.

Dubai’s index ended the session flat in thin trade with just under half of traded shares declining and a little over a fifth gaining. Builder Arabtec, which climbed 3.4 percent on Sunday, retreated 1.3 percent.

Kuwait’s Agility climbed as much as 1.0 percent but ultimately closed flat after the logistics company reported an 11 percent rise in second-quarter net profit to 15 million dinars ($50 million), ahead of SICO Bahrain’s forecast of 13.7 million.

Kuwait’s main index advanced 0.5 percent, supported by banking shares. Boubyan Bank rose 1.3 percent and Al Ahli Bank of Kuwait added 1.6 percent.



Riyadh’s main index rose 0.5 percent with the petrochemical sector gaining for a third session in a row as Brent oil traded above $44 a barrel, recovering from a four-month low of $41.51 hit on Aug. 2.

Industry bellwether Saudi Basic Industries added 0.3 percent and an affiliate of SABIC, Saudi Kayan Petrochemical , jumped 4.5 percent.

Some domestic demand-driven companies also advanced with retailer Fawaz Abdulaziz Alhokair climbing 5.0 percent.

In Egypt, the main index edged up 0.6 percent to a 13-month closing high of 8,273 points. Trading volumes almost doubled from Sunday to its highest level since mid-April as both local and foreign institutions accumulated shares, bourse data showed.

Telecom Egypt rose 0.8 percent after Egypt’s landline monopoly said on Sunday that its board gave final approval of plans to buy a fourth-generation mobile phone licence, although the price was not disclosed, according to a senior source at the company. This would allow the company to be a direct player in the mobile phone market.

Orascom Telecom, the most heavily traded stock on the exchange, jumped 5.3 percent but Global Telecom Holding fell 1.5 percent.


Electricity Ministry announces new tariffs part of subsidy-cut plan

Minister of Electricity Mohamed Shaker announced Monday in a press conference the new electricity tariffs as part of the government’s subsidy cut plan.

The ministry previously announced its plan to gradually lift subsidies off electricity; Shaker said Monday that the ministry plans to lessen the subsidy to 29 billion EGP instead of 40 billion EGP to develop other sectors in the country such as education and health.

The monthly tariffs for household have increased as follows:


– Those who consume power up to 50 kw will pay 0.11 EGP instead of 0.07 EGP/kw

– Those who consume up to 100 kw will pay 0.19 EGP instead of 0.14 EGP

– Those who consume up to 200 kw will pay 0.21 EGP instead of 0.16 EGP

– Those who consume up to 350 kw will pay 0.42 EGP instead of 0.35 EGP

– Those who consume up to 650 kw will pay 0.55 EGP instead of 0.44 EGP

– Those who consume up to 1000 kw will pay 0.95 EGP instead of 0.71 EGP

– Those who consume more than 1000 kw will pay 0.95 EGP instead of 0.81 EGP


Egyptian foreign reserves down to $15.536 bln at end-July

(Reuters) – Egypt’s net foreign reserves fell sharply to $15.536 billion at the end of July, the central bank said on Sunday. Reserves stood at $17.546 billion at the end of June.

Egypt had roughly $36 billion in reserves before an uprising in 2011 overthrew Hosni Mubarak. That ushered in a period of political turmoil that scared away tourists and foreign investors, key sources of foreign exchange.

Foreign currency reserves in July were further drained as Egypt returned a $1 billion deposit to Qatar and paid $720 million in fees to the Paris Club of creditor nations.

The dollar shortage has stifled business activity in the heavily import-dependent country, with goods stacking up at ports and investor confidence dropping.

The central bank has been rationing its dollar reserves through regular weekly sales, keeping the pound artificially strong at 8.78 per dollar.

Egypt devalued the pound by 13 percent in March in an effort to close the gap between the official and parallel rates, which hovered at around 12.5 last week, but the move failed to boost dollar liquidity or close the gap.


Reports- Egypt has proposed to IMF 18-month reform program 

(AP) — Egyptian dailies say Cairo has proposed to IMF delegates an 18-month reform program in return for a $12 billion loan over three years to shore up its economy.

Monday’s reports by three dailies — Al-Shorouk, Al-Masry Al-Youm and Al-Watan — say differences remain on the size of a proposed devaluation of the pound and the timetable for implementing some of the more politically sensitive reforms, like state subsidies.

According to the papers, the International Monetary Fund has rejected requests for a delay or a staggered implementation of the reforms. They all quote unnamed government officials familiar with the Egypt-IMF talks that started last week.

Egypt is struggling to keep its economy afloat, with a slump in tourism, foreign currency shortages and double digit inflation and unemployment among its main ailments.



Sisi decrees to amend deal on oil exploration in Western Sahara

President Abdel Fatah al-Sisi has decreed that Egyptian Ministry of Petroleum could contact with Egyptian General Petroleum Corporation (EGPC) and Apache Khalda Corporation LDC to amend an agreement for obligation to search and exploit oil in the Khalda area of Western Sahara, Youm7 reported Monday.


Ministry of Housing tender 10 projects worth 200 bln EGP

Egyptian Ministry of Housing will tender ten projects worth 200 billion EGP over the coming ten years, al-Maal newspaper reported Minister Mostafa Madbouly Monday.

The projects are the second bunch of the investments and joint projects that have been scheduled to be carried out since 2015 March economic conference in Sharm el Sheikh.


CBE writes 5 exchange firms off

Central Bank of Egypt has written more five exchange firms off over “committing acts aimed to harm Egyptian economy”. The number of suspended companies rose to 47 firms nationwide since the government has launched campaigns on exchange outlets to get rid of black market’s control on hard currency.

Since Egypt devaluated Egyptian pound against the U.S. dollar in March amid shortage in the hard currency, the pound value was gravely increased in the black market.


Egypt’s main index rises by 0.85% at Monday opening session

Egypt’s main stock index went up by 0.85 percent at 8293 points, pushing benchmark to gain 2.3 billion EGP, an hour after the start of trading process, Youm7 reported Monday.

On Thursday, Cairo’s main index declined by 0.4 percent, ending three sessions of gains that had taken the benchmark to a 13-month high on Thursday, Reuters reported Sunday.

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