Week ending August 28, 2020

EGX 30: 11,462 (+2.7%) weekly change, (-17.9%) YTD  
Traded Value 1W Avg: EGP 875M , (+26.6%) above 90D Avg.  
EGP:USD: 15.87 (-0.4%) weekly change 

Local Pick-up

126,000 tourists came to Egypt since resorts reopened in July

Egypt started international direct flights to Sharm El-Sheikh, Hurghada and Marsa Matrouh as their seaside resorts re-opened their doors on July 1. Around 600 hotels have met the safety protocols announced by the authorities and were allowed to reopen. Luxor and Aswan will also be reopening on September 1, and the news has even more tourists excited about coming to Egypt during the winter season. (Source: Ahram Online)

Egypt’s petroleum imports to fall 17.1% in FY20/21

Egypt will be reducing imports of oil and petroleum products by 17.1% Y-o-Y as the country ramps up exploration and sets up new production fields on existing production lines in an effort to cover more of its domestic consumption. This would help bring fuel import costs down to USD13.1bn. (Source: Enterprise)

Egypt’s parliament approves customs automation systems

In an effort to modernize, automate and simplify custom systems & procedures – Egypt, moves forward with a national project that will expedite customs clearance and reduce their cost. This should in turn reduce the cost of imported goods. (Source: Daily News)

Global Pick-up

After dominating food delivery, DoorDash expand to grocery delivery ahead of their IPO

DoorDash customers will now be able to get their groceries delivered right to their doorstep in under an hour. This will give DoorDash an edge over Amazon Fresh which uses set delivery window times. This could be a major growth driver that helps them gear up for their Q4 IPO plans.

Market wrap up

Stay informed by checking out our weekly wrap up of financial markets performance here.

Weekly Thunderstrike!

In the biggest reshuffling in 7 years, Exxon Mobil and Pfizer have been kicked out of the Dow Jones making way for technology companies like Salesforce, and Honeywell. This is a testament to how times are changing with commodity companies falling and tech rising.

Topic of the Week – Thndr Rules of Investing

# 3 Invest in what you understand!

Investing in a stock means owning a part of the business. So, when you look for a stock to invest in, look for businesses you believe have everything in place to grow in the long run. Let’s call this a good business.

The first step now, is to set your criteria for what a good business is. For example, solid operating profits and a healthy growth rate could be a good business for you. And, visionary management and an innovative product could mean a good business for me.

The second step is to understand the businesses you invest in, inside out—How they make profit, what affects their stock price, and what the future looks like for them.

The third step is to closely monitor these companies, so you can make sure that step one and two stay relevant to you and your goals.

# 4 Invest as early as you can, and invest for the long term

The long term doesn’t mean investing to make money to go on a trip in the summer, but for a beach house in 10 years.

Ben Graham says, “In the short run, the market is a voting machine. Yet, in the long run, it is a weighing machine.”

In the short run news, and emotions may cause stock prices to go up and down. But, in the long run the price of the stock depends on the fundamentals of the business.

So, be patient and don’t let the ups and downs fool you. And, remember this is not a get rich quick scheme.

Warren Buffet said, “Nobody buys a farm based on whether they think it’s going to rain next year, they buy it because they think it’s a good investment over 10 or 20 years.”  Let’s all try and follow in his footsteps.  

And, as you might think the earlier you start investing, the better. The longer the time you spend investing, the more you’ll end up with.