UPDATE – Egypt’s business digest Oct. 11: Gulf up on oil price, Egypt falls on Saudi crude product halt
A Whiting Petroleum Co. pump jack pulls crude oil from the Bakken region of the Northern Plains AP/Matthew Brown (archived)

CAIRO: No more browsing from site to site, view the top business news stories on Oct.11 here:

 

Gulf up on oil price, Egypt falls on Saudi crude product halt

 

(REUTERS): Most major bourses in the Gulf rose on Tuesday as oil prices held near one-year highs, while Egypt retreated after news that Saudi Arabia had suspended oil product supplies to the country this month.

 

Riyadh’s stock index gained 1.5 percent, trimming its loss over the last four weeks to 8.4 percent. All 14 listed petrochemical producers advanced after Brent oil futures surged as much as 3 percent on Monday. Saudi Basic Industries , which has not yet reported its third-quarter results, added 0.6 percent.

 

The positive mood spilled into other sectors with rebounds in some shares that had been beaten down over the last several weeks by the government’s spending cuts. Retailer Fawaz Alhokair jumped 3.9 percent and supermarket operator Al Othaim added 3.4 percent.

 

But Riyad Bank, the first Saudi bank to report third-quarter earnings, dropped 2.1 percent after it posted an 18.9 percent fall in net profit as costs rose.

 

It made 729 million riyals ($194.4 million) in the three months to Sept. 30, down from 899 million riyals in the same period of 2015. Analysts polled by Reuters had on average forecast 1.05 billion riyals.

 

In Qatar the main index closed up 0.3 percent as Qatar National Bank, the largest listed share, gained 0.5 percent after it reported a 10.2 percent increase in third-quarter net profit to 3.45 billion riyals ($947.5 million). Aalysts had forecast 3.26 billion riyals.

 

Dubai’s main index rose 1.0 percent as nine-tenths of traded stocks advanced. Drake & Scull, the most heavily traded stock, jumped 4.2 percent; the builder had surged 7.0 percent on Monday after appointing a new chief operating officer, Wael Allan, replacing Khaldoun Tabari, a major shareholder.

 

Emaar Properties climbed 0.6 percent. On Monday the developer started building what it said would be the world’s tallest tower, another record for a company that built the highest skyscraper, Burj Khalifa.

 

Blue chips helped lift Kuwait’s general index 1.1 percent. National Bank of Kuwait, the largest Kuwaiti lender, rose 1.7 percent and telecommunications operator Zain added 1.5 percent.

 

But Abu Dhabi’s index lagged, dipping 0.3 percent. Large-cap banks were the main drag with First Gulf Bank dropping 1.7 percent.

 

EGYPT

 

Egypt’s main index retreated 1.6 percent to 8,233 points with investment firm Qalaa Holdings tumbling 5.3 percent, taking its loss over the last three days to nearly 20 percent after it reported a sharply wider quarterly net loss.

 

All but three of the traded shares in the index declined. The largest lender, Commercial International Bank, fell 1.5 percent.

 

Saudi Aramco informed the Egyptian General Petroleum Corporation, Egypt’s state oil company, in early October that it would halt the supply of refined oil products to Egypt, a government official told Reuters on Monday.

 

“The market reacted negatively to the news about Aramco stopping its supply of petroleum products, and this, coupled with the fact that the index failed to break the resistance barrier of 8,500 points, led to profit-taking,” said Ibrahim Nimr, head of technical analysis at Cairo-based Naeem Brokerage.

 

Wafik Dawood, portfolio manager at Cairo’s Compass Capital, said of Saudi Aramco’s decision: “The uncertainty about whether this is a one-off event or will be the new status quo is what is creating volatility in the market.”

 

 

EGX closes at collective decline; loses 5.7 bln EGP

The Egyptian Stock Exchange closed transaction session Tuesday at a collective decline of all indexes, due to Egyptians’ and foreigners’ sales, while Arabs were mostly purchasing.

The market capitalization lost by the end of the session 5.7 billion EGP.

 

 

Tax Authority: we expect our output to increase to 18.3% by 2021

Head of Egyptian Tax Authority Abdel Moneim Matar expected that the sector’s input to the Gross National Product will increase to 18.3 percent in 2021.

 

 

Egypt, EU sign six agreements on SMEs, infrastructure projects

Egyptian Minister of International Cooperation Sahar Nasr and EU Commissioner for Neighborhood Policy and Enlargement Negotiations Johannes Hahn signed 6 cooperative agreements worth €129m, according to a statement from the Egyptian Ministry on Monday.

The agreements focus on the small and medium-sized enterprises in Egypt and infrastructure projects; Hahn is paying Egypt a two-day visit during which he seeks enhancing the  bilateral relations.

 

USD exchange rate ‘stable,’ reaches 8.78 EGP

The USD exchange rate has been stable against the Egyptian Pound, where it reached Tuesday 8.78 EGP for sale and 8.88 for purchase. Euro exchange rate reached 9.93 EGP for purchase and 9.96 EGP for sale.

The Central Bank of Egypt (CBE) pumped a total $120 million to the domestic banks to meet the importers’ need of dollars to get their imported goods.

 

EGX stops trading of nine companies for 30 munites on Tuesday

Egypt’s Stock Exchange ordered to stop trading on shares of nine companies for 30 minutes after the their shared boomed by more than 5 percent on Tuesday.

The companies include the GMC for industrial commercial financial investments; Advanced Pharmaceutical Packaging Co (APPC); National Real Estate Bank for Development (NRPD); Cairo Development and Investment Co; the Arabian Food Industries Company (Domty); Golden Pyramids Plaza; Egypt for Poultry; Delta Sugar; New Ismailia For Urban Development Company.

 

508 Dutch companies investing in Egypt: Minister

Number of Dutch companies investing in Egypt reached 508 companies with capitals of $2.715 billion, providing a total of 4,615 job opportunities in sectors of petroleum, chemicals, transport, electronics, and food, stated Egyptian Minister of Investment Dalia Khurshid on Tuesday.

Kurshid met with Dutch ambassador to Cairo Laurens Westhoff and his accompanying delegation to dicuss the ways of enhancing the bilateral relations.

 

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