UPDATE: Egypt’s business digest Sept. 18: EGX loses 2.4bn EGP, EGX down 0.79%
Egyptian stock exchange - YOUM7 (Archive)


CAIRO: No more browsing from site to site, view the top business news stories on Sept. 18 here:

EGX loses 2.4bn EGP, EGX down 0.79%

The Egyptian Exchange (EGX) indexes were all down at the close of Sunday’s trading due to Arab investors’ selling pressures, data from the EGX showed.

The main index, EGX30 dropped 0.79 percent to close at 7916.41 points, while mid- and small-cap index EGX70 dropped 1.44 percent to close at 351.43 points.

The market capital incurred losses estimated at 2.4 billion EGP ($259 million,) to stand at 410.3 billion EGP during the closing session of Sunday.


Egypt sets up committee to resolve agricultural trade standoff with Russia

(Reuters) – Egypt’s agriculture ministry has formed a high level committee to try and resolve a trade standoff with Russia over agricultural commodities, the ministry said on Sunday.

Russia said on Friday it would temporarily suspend imports of fruit and vegetables from Egypt starting Sept. 22.

The Russian ban came shortly after Egyptian quarantine inspectors rejected a 60,000-tonne shipment of Russian wheat because it contained trace levels of the common grains fungus ergot, which Cairo recently banned.

Egypt is the biggest buyer of Russian wheat and Russia is a top export market for Egyptian fruits.

Moscow has a history of using threats and limiting imports in trade disputes, but Cairo’s policy over the ergot fungus has created a headache for all of Egypt’s wheat suppliers, who say guaranteeing zero ergot in shipments is impossible.


Cairo to host 2nd Egyptian-Tanzanian business forum in October

Cairo will host 2nd Egyptian-Tanzanian business forum in mid-October with the participation of a delegation of Tanzanian businessmen and officials led by Minister for Industry, Youm7 reported on Sunday.

Attendees will discuss ways to enhance economic cooperation and the possibility of implementing joint projects that serve trade exchange, Khaled Abu el Makarem, Chairman of the Chemical and Fertilizers Export Council was quoted by Youm7.

The first Egypt-Tanzania business forum kicked off in Dar es Salaam with the participation of more than 150 business professionals from the two countries.


UNDP in Egypt changed from aid to partnership: Minister

Egyptian Minister of International Cooperation Sahr Nasr announced on Sunday that the United Nations Development Program in Egypt will be changed from an aid to a partnership, Youm7 reported.

In a press conference, She added that the program provides more job opportunities for the youths nationwide, to support small and medium-sized enterprises (SMEs) and services, and to provides a package of aid to the needy families.

The five-year program was signed in 2013 and would renewed in 2018 until 2028, said UN coordinator Mostafa bin Meleih at the conference.


Egypt seeks wheat for third time since ergot reversal

(Reuters) – Egypt, the world’s largest wheat buyer, is tapping global markets again to purchase the strategic grain, its third attempt since reinstating a controversial zero tolerance policy towards the ergot fungus that has infuriated traders.

The state grain buyer, the General Authority for Supply Commodities (GASC), set the tender on Sunday to buy an unspecified amount of wheat from global suppliers for shipment from Oct. 16-26, GASC vice chairman Ahmed Youssef said.

Tenders should reach GASC by noon local time (1000 GMT) on Monday. The results should come out after 3:30 p.m. the same day. Wheat bids should be free-on-board, with a separate freight offer, he said.

The surprise announcement comes after GASC was forced to cancel its two previous attempts to purchase wheat. Suppliers had refrained from making offers since Egypt said it was banning any trace of ergot, against the more international practice of tolerating up to 0.05 percent.

Egypt failed to garner a single offer from wheat suppliers at its latest tender on Friday, raising renewed questions about its ability to tap global markets while banning ergot.

Ergot is a common grains fungus that can cause hallucinations when consumed in large amounts but which is considered harmless in low quantities.

GASC rarely makes a tender announcement on a Sunday, when global grain markets are closed.

“No one was expecting a Monday deadline for a GASC tender as markets are closed on Sunday, also the ergot rule is still zero so I don’t expect there will be any participation for tomorrow,” a Cairo-based trader said.

The ergot rule is being applied retroactively to wheat shipments contracted by GASC prior to the zero policy, causing chaos for inspections at ports of origin and at least two rejections of Romanian and Russian cargoes so far.

Egypt’s prime minister held an urgent meeting on Saturday with the ministers of supply, agriculture, health, and trade, to discuss the outstanding wheat shipments affected by the new ergot policy but the outcome has not been announced yet.

For Monday’s tender, GASC said it is seeking to buy cargoes of soft and/or milling wheat from the United States, Canada, Australia, France, Germany, Poland, Argentina, Russia, Kazakhstan, Ukraine, Romania and Bulgaria.

GASC said it was also seeking to buy 55,000- to 60,000-tonne cargoes of the following: U.S. North Pacific soft white wheat; U.S. soft red winter wheat; Russian milling wheat; Ukrainian milling wheat, and Australian standard white wheat. GASC is also seeking 60,000-tonne cargoes of the following: Canadian soft wheat; French milling wheat; German milling wheat; Argentine bread wheat; Polish milling wheat; Kazakh milling wheat; Romanian milling wheat, and Bulgarian milling wheat.


Egyptian pound steady at Sunday auction

The Central Bank of Egypt has kept the pound steady against the US dollar at its official foreign currency auction on Sunday, with the unchanged rate of 8.88 per dollar, data from the bank showed.

Meanwhile, The Central Bank of Egypt pumped on Saturday $120 million in the domestic banks, amid the crisis of hard currency shortage, Youm7 reported.


EGX sees a decline in mid-session of Sunday trading

Egypt’s benchmark of stock exchange saw a decline in the mid-session of Sunday trading, caused by share sales of Arab and Egyptian investor, Youm7 reported.

EGX 30 went down by 0.31 percent, while EGX 50 decreased by 0.43 percent.

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