Week ending January 09, 2021

EGX 30: 10,952 (+1.0%) weekly change, (+1.0%) YTD  
Traded Value 1W Avg: EGP 555M , (-7.0%) above 90D Avg.  
EGP:USD: 15.69 (-0.2%) weekly change 

Local Pick-up

The National Bank of Egypt (NBE) acquires a 24% stake in Raya subsidiary Aman Holding for EGP 480M

The acquisition will help the bank expand its non-banking financial services and micro-project financing, NBE Chairperson Hisham Okasha said. Raya Holding established Aman Holding last January as a parent for its three non-banking financial services arms: Aman Financial Services, Aman E-Payments, and Aman Microfinance. (Enterprise)

Ezz Steel BoD approves to buy 1M treasury shares buyback

Ezz Steel will buy 1M shares of the company’s capital amounting to 0.2% as treasury buyback (Check Word of the Week). The purchases will be self-financed from the liquidity sources available to the company. The expected impact is to improve the stock’s performance and support the company’s market value. (Company disclosure)

Telecom Egypt to provide Google with TransEgypt meshed solution

Telecom Egypt, one of the largest subsea cables operators in the region, signed an agreement with Google to provide it with the first of its kind layer three meshed solution on multiple Telecom Egypt’s redundant and resilient Egypt crossing network infrastructure. As part of the agreement, Google will also be provided capacity on Telecom Egypt’s Mediterranean submarine cable, TE North. (Company disclosure)

Global Pick-up

AmerisourceBergen to buy Alliance Healthcare in USD 6.5B deal

American drug wholesale company amerisourcebergen has acquired alliance healthcare, the pharmacy wholesale unit of Walgreens boots alliance, for USD 6.5B.
The deal expands AmerisourceBergen’s business in Europe and Walgreens will now be free to increase its focus on its core retail pharmacy business. The acquisition caused Walgreens shares to go up 2%, while AmerisourceBergen shares jumped 6.4%. (Wall Street Journal)

Market wrap up

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

Weekly Thunderstrike!

Twitter permanently bans President Trump’s personal account for repeated rules violations.

Topic of the week – Treasury shares

Just like a company can issue & sell new shares to the public through IPO or secondary offering, a company might want to buy a portion of its shares back, these shares are called (treasury shares), as the company keeps it in its own treasury.

Treasury shares don’t have voting rights and don’t pay dividends. But the company may benefit from it as it helps raise the share price & provide immediate rewards to investors.