Week ending August 14, 2020

EGX 30: 10,944 (+1.2%) weekly change, (-21.6%) YTD  
Traded Value 1W Avg: EGP 709M , (+9.6%) above 90D Avg.  
EGP:USD: 15.94 (-0.2%) weekly change 

Local Pick-up

Which companies can you short sell in EGX? More than before. 

Short selling happens when an investor borrows stocks, sells them and then buys them back at a lower price to return.(more on this in our Topic of the Week section below).
Only a limited number of companies were eligible for short selling in EGX. This list of companies has now grown to a total of 46 after 16 new companies have been added last week. 
Wanna see the full list? Click here.

A group of investors led by Act Financial now own 11.4% of SODIC 

Act Financials led group that includes Hassan Allam Properties, and Concrete Plus Engineering & Construction double their stakes in SODIC going up from 5% to 11.4%. (Source: Enterprise)

B Investments looking to sell 20% of its stake in Total 

B Investments announced in a statement to EGX that they are now in talks with Total about offloading 20% of their stake in the company. 
B Investments currently owns 7.97% of Total, Egypt’s second largest private downstream operator—operating 230 service stations.  (Source: Company Disclosure)

Global Pick-up

Tesla’s stock price soars 7% after a 5-1 stock split. 

After Tesla’s stock surged over 200% this year, the company decided to split each share into 5—issuing a 5:1 stock split and giving access to its stock to more retail investors. After announcing the stock split, the high demand made Tesla’s stock price go up an extra 7%. (Source: Economic Times)

Weekly Thunderstrike!

UK enters first recession since 2009 as GDP tumbles by 20.4% due coronavirus lockdowns! 

Topic of the week – Short Selling

Short selling happens when an investor thinks a stock price will go down. Let’s say company X’s stock value is now EGP 100 and you think that it will go down to EGP 50 by next month. So, you go ahead and borrow these stocks from another investor with the promise of giving them back. You then sell the stocks you borrowed at the EGP 100 price point. Next month comes along and the price of this stock goes down to EGP 50 like you predicted—So, you buy the stocks you sold at the lower price of EGP 50 and return them to the investor you borrowed from last month. This way, you made a profit of EGP 50 on each stock you borrowed, sold, bought back, and returned.