Week ending January 16, 2021

EGX 30: 11,453 (+4.6%) weekly change, (+5.6%) YTD  
Traded Value 1W Avg: EGP 722M , (+21.3%) above 90D Avg.  
EGP:USD: 15.65 (-0.3%) weekly change 

Local Pick-up

Banks are banned from distributing dividends to their shareholders

The Central Bank of Egypt has banned banks from distributing any cash dividends to the shareholders from last year’s profits or any retained earnings to confront the risks that might stem out the COVID-19 crisis. This doesn’t include the distribution of bonuses to employees and compensations to board members. (Zawya)

TAQA Arabia to invest EGP 3.6B to build 180 natgas filling stations

Qalaa Holdings’ energy distributor TAQA announced that it will expand the country’s network of natgas stations as more gas-fuelled cars and buses take to the roads over the coming years. The company will spend EGP 800M to construct 40 stations this year and many more in the years after. (Energy Egypt)

Amer Group and Qasatli concludes EGP 700M Securitization bond

Amer Group and Qasatli EGP 700M securitization bond issuance was covered more than one time and is part of a program for a portfolio of receivables worth EGP 911M from five originators, including Amer Group’s four subsidiaries and mortgage finance company Qasatli. The offering is considered the first tranche of a larger EGP 6.5B program involving the group. (EFG Hermes)

Global Pick-up

WhatsApp’s new privacy sparks alarms

Facebook Inc.’s WhatsApp has begun alerting its 2B users to an update of its privacy policy that allows WhatsApp to start sharing data with its parent company. The new terms have caused an outcry and triggered a wave of defections to rival services. Whatsapp emphasized that neither it nor Facebook can see users’ private messages as they are encrypted end-to-end. (Bloomberg)

Market wrap up

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Weekly Thunderstrike!

‘Signal Advance’ stock price surges by 1,100% by mistake as Elon Musk tweets ‘use signal’

Topic of the week – Securitization

Securitization is the process of pooling various financial assets together into a single asset and selling it to investors. This aims to provide funding & liquidity to a wide range of consumer and business credit needs. The financial assets often occur with loans and other assets that generate receivables.