UPDATE – Egypt’s business digest Nov. 21: EGX closes on positive note, gains 13.7 bln EGP Monday
The Egyptian Exchange - YOUM7 (Archive)

CAIRO: No more browsing from site to site, view the top business news stories on Nov. 21 here:

 

EGX closes on positive note, gains 13.7 bln EGP Monday

Egypt’s stock market exchange has gained 13.7 billion EGP at the end of Monday transaction session, Youm7 reported.

The session ended at a positive note as all indexes rise, powered by foreign purchases, while Egyptians and Arabs were mostly selling.

 

MIDEAST STOCKS-Saudi sags on profit taking, Egypt conquers 8-yr high as currency weakens

Stock markets in the Gulf diverged on Monday with Saudi Arabia’s index cooling for a third session as investors book profits on lofty prices while Abu Dhabi rebounded slightly.

Egypt hit yet another 8-year high as foreign investors continued to reprice equities as the local currency weakened against the U.S. dollar.

Riyadh’s main index fell 1.1 percent in modest trade, with roughly 70 percent of the traded shares declining. It is now down 2.3 percent over the past three sessions but is still up 14.9 percent over the last 30 days.

Banking shares, which have been the chief gainers over the past four weeks, were hard hit with all but two of the listed lenders closing lower.

Blue-chip Samba Financial Group lost 4.4 percent to 21.90 riyals and Saudi British Bank fell 4.7 percent. Shares in both lenders are now trading close to the expected fair price of analysts, according to Thomson Reuters data, a sign that long term value-traders will have little impetus to add further shares to their portfolios.

“For over a month the stock market has been performing in a silo, disconnected from the global environment even somewhat dislocated from the movement in crude oil prices,” said a Riyadh-based portfolio manager.

Over the past month, Brent oil is down 9.5 percent while the petrochemical sector is up 8.3 percent. On Monday, however, despite a bounce in crude oil prices over $47 a barrel the majority of the listed oil-derivative shares fell. National Petrochemical Co fell 2.9 percent.

Abu Dhabi’s index rose 0.2 percent after falling 1.7 percent on Sunday. Abu Dhabi Commercial Bank climbed 0.3 percent and Union National Bank added 0.7 percent.

On Sunday, UNB dropped 5.2 percent and ADCB lost 2.7 percent after both lenders issued separate statements denying last week’s Bloomberg report that they were involved in merger talks.

Abu Dhabi Islamic Bank ended flat after pulling back 0.8 percent on Sunday after the lender said that it has no plans to merge with Alhilal Bank.

Dubai’s Shuaa Capital jumped 10.8 percent, taking its gains over the last two session to 19.1 percent as investors were optimistic that its new shareholder, Abu Dhabi Financial Group, will unlock value for the investment firm. Shares in Shuaa are now trading at roughly 2.5 times the acquisition price of 0.705 dirham a share.

Shares in other second-tier companies, usually traded by local traders, also climbed, helping carry Dubai’s main index 0.1 percent higher. Union Properties jumped 9.8 percent.

 

EGYPT DEFIANT

Cairo’s index of the most active shares gained 2.4 percent taking the index to yet another 8-year high in heavy trade.

Foreign funds, which have been aggressive buyers of Egyptian blue chips since the currency was floated on Nov. 3, were net buyers on Monday, bourse data showed.

The Egyptian pound weakend on Monday, trading between 17.30 to 17.70 against the dollar. The further the pound falls the cheaper local currency denominated shares are for foreign buyers.

Exotic Partners, a Dubai-based investment firm, said in a note that there has been a shift in trading strategy when picking Egyptian equities, and analysts are now favouring those shares with “distressed valuations” over the banks, U.S dollar biased stocks and real estate related shares.

Some of their top picks include Telecom Egypt, Palm Hills Development, Egypt Kuwait Holding and Oriental Weavers. Shares in all those stocks closed higher on Monday with , except Egypt Kuwait Holding which fell back 5.0 percent on profit taking.

The index has now risen 35.4 percent since the currency float and is up 64.8 percent year-to-date.

 

 

Egyptian banks attract $3 bln after currency float -cbank sub-governor

Egyptian banks have attracted some $3 billion since Egypt floated its pound earlier this month, central bank sub-governor Tarek Fayed said at a conference on Monday.

The central bank abandoned its currency peg of 8.8 pounds to the U.S. dollar on Nov. 3 in a move it hopes will unlock foreign currency inflows and end a black market for dollars.

Egypt’s currency peg and a decline in foreign investment after the 2011 uprising had drained the central bank’s foreign reserves and forced it to ration dollars before the flotation.

Central Bank Governor Tarek Amer said in comments published in a local newspaper last week that Egypt’s banks had attracted about $1.4 billion in the first week after the float.

 

Italy’s Eni says Egypt Nooros gas field producing 900mln cubic feet per day

Italian oil major Eni said its Egypt Nooros field is a producing almost 900 million cubic feet of gas per day and will top 1 billion cubic feet per day in the first quarter of 2017, Egypt’s state news agency MENA reported.

Once an energy exporter, Egypt has turned into a net importer in recent years, squeezed by declining production and increasing consumption.

It is racing to reverse that trend, speeding up the development of major gas discoveries with a stated goal of achieving energy self-sufficiency by 2020.

Eni began production at its Nile Delta offshore field Nooros in September 2015.

It said previously that it expected peak production capacity of about 160,000 barrels of oil equivalent (928 million cubic feet) per day in the spring of 2017.

Egypt’s domestic gas production is currently about 4.35 billion cubic feet per day compared with consumption of around 5.2 billion, oil minister Tarek El Molla said last month.

Eni’s giant Mediterranean gas field Zohr, discovered in August 2015 with an estimated 30 trillion cubic feet of gas, is expected to come online next year and produce about 1 billion cubic feet of gas per day in 2017.

 

Egypt’s NBE says new high-yield deposit certificates raise 85 bln pounds

National Bank of Egypt’s (NBE) high-yielding certificates of deposit, launched when the central bank floated the pound this month, have raised 85 billion pounds ($5 billion), NBE chairman Hisham Okasha said on the sidelines of a conference on Monday.

NBE and Banque Misr, Egypt’s largest two state banks, said on Nov. 3 they would offer 18-month CDs at 20 percent and three-year CDs at 16 percent.

The CDs are part of efforts to stabilize the Egyptian pound after the central bank ditched its U.S. dollar peg and raised benchmark interest rates by 300 basis points to try to unlock inflows and curtail the currency black market. ($1 = 17.0000 Egyptian pounds).

 

Egypt sells $1.696 bln in treasury bills at average yield of 3.749 pct

Egypt sold $1.696 billion in one-year treasury bills at a weighted average yield of 3.749 percent, the central bank said on Monday.

It said the submitted amount for the dollar-denominated issue was $1.841 billion. The maximum yield was 3.75 percent and the minimum yield was 3.72 percent.

 

Yields fall at Egypt T-bond auction on Monday -c.bank data

Yields fell at Egypt’s five-year and ten-year treasury bond auctions on Monday, data from the central bank showed.

The average yield on the five-year bond fell to 16.814 percent from an average of 20.548 percent at the previous auction on Nov. 7.

The average yield on the 10-year bond also fell, to 16.952 percent from 20.582 percent at the last auction.

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