Week ending July 24, 2020

EGX 30: 10,460 (+0.2%) weekly change, (-25.1%) YTD  
Traded Value 1W Avg: EGP 519M , (-19.2%) above 90D Avg.  
EGP:USD: 15.99 (+0.2%) weekly change  

Local Pick-up

NUCA closes largest securitization bond offering of its kind in Egypt 

The National Bank of Egypt announced a successful closing of the securitized bond offering that was worth EGP 10B. This is considered the largest securitization bond issuance in the Egyptian market. (Source: Al Mal)

African Export-Import bank finalises USD 3.9B Egypt COVID package

Since the COVID outbreak, the African Export-Import Bank (Afreximbank) has paid out a total of USD 3.55B to the Egyptian banking sector under its Pandemic Trade Impact Mitigation Facility (PATIMFA). The bank also provided USD 300M to the National Bank of Egypt to support expanding intra-African trade activities. The funds make sure that trade debts are fulfilled and support stabilizing foreign exchange resources that support the flow of critical imports like food and medical supplies. (Source: Reuters)

European Investment Bank (EIB) pays out  EUR 1.9 B to support Egypt’s public transport

The Minister of International Cooperation, Rania Al Mashat announced that the European Investment Bank (EIB) just approved EUR 1.1B to develop public transport infrastructure in Egypt. This money will go towards three projects related to the National Authority of Tunnels. (Source: Mubasher)

Global Pick-up

EU Leaders get together and agree on EUR 750B recovery fund for the pandemic 

Investors rejoice after hearing the news of the EUR 750B pandemic recovery fund and EU stocks are on the rise. The agreement, required the unanimous approval of all 27 European Union member states, will see 390 billion euros paid out as grants with the balance in the form of low-interest loans. (Source: Bloomberg)

Weekly Thunderstrike!

With more orange juice on every breakfast table due to COVID 19 and the misguided desire for Vitamin C; The commodities future surged by more than 20%.

Topic of the week – The Thndr Rules of Investing

Return: Your return lets you know how well your investment is doing, it is the money made or lost on an investment over a period of time. Looking at return helps you compare different investment opportunities. 

Risk: Just like there is a potential return with every investment, there is also a potential risk. The risk is the degree of uncertainty that an investment might not make the expected return or even lose money. Every investment comes with different degrees of risk and return. 

Portfolio Diversification: An investor’s portfolio includes all the financial assets they have invested. Portfolio diversification is spreading out these investments over different assets classes or different industries. This is a risk management strategy to soften the blow if one industry drops.

Company of the month- Telecom Egypt