Week ending January 30, 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 

Listen to our Co-Founder Ahmad Hammouda talk to Arabhardware about Thndr. Article here.

Local Pick-up

The EGX30 swapped five companies in its rebalancing last week

The EGX30 index rebalances twice a year. This means some companies leave and others join. Here’s the update from last week’s rebalancing. 

Who joined: Alexandria Mineral Oils, Abou Kir Fertilizers, CI Capital Holding, Fawry, and MM Group.
Who left: Juhayna, Dice Sport, Egyptian Iron & Steel, Cairo For Investment And Real Estate Development, and Beltone Financial.

Suez Cement sold its 51% stake in Kuwait Hilal Cement for EGP 156M

Due to the cement industry crisis in Egypt, Suez cement was forced to sell its 51% stake in Kuwait Hilal Cement at a price of KWD 0.058 per share, with an approximate total value of EGP 155.8M. (Enterprise)

AIH consumer finance subsidiary Rawaj completed a EGP 308M securitized bond issuance

Rawaj, a consumer finance subsidiary of Arabia Investment Holding (AIH), has completed an EGP 308M securitized bonds issuance. The funding will be used for expansion as the company plans to open new 4 branches & produce more diverse products during the year. (Enterprise)

Global Pick-up

After almost 20B in losses, Gamestop short sellers still won’t budge.

Over the past week, retail investors decided to buy the stock of the video game retailer GameStop en masse. The idea was that GameStop’s stock was extremely undervalued, and that hedge funds had overextended themselves by betting against it, or “shorting” it. This momentum rallied the share price of US video game retailer, GameStop, more than 1,600%. The result has been chaotic for the hedge funds causing losses of nearly USD 20B this month. Since the rise is not driven by fundamentals, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock. (CNBC)

Market wrap up

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

Weekly Thunderstrike!

General Motors plans to completely phase out vehicles using internal combustion engines by 2035

Topic of the week – Short selling

When you short-sell a stock, you borrow shares from someone else with the promise to return them in the future. It’s a way to take advantage of a stock that you believe will decrease in price. When the time comes to return the stock (if the stock price falls), you can then buy it a lower price than you had originally sold the borrowed stock—making the difference in price as profit.