Week ending July 31, 2020

EGX 30: 10,599 (+1.3%) weekly change, (-24.1%) YTD  
Traded Value 1W Avg: EGP 532M , (-14.3%) above 90D Avg.  
EGP:USD: 15.99 (0.0%) weekly change 

Local Pick-up

Our homegrown Orascom Investment Holding (OIH) splits into two different companies

For a little background OIH boasts a diverse portfolio that ranges from real-estate development, entertainment, financial services, to telecommunications. The board approved this demerger to separate between the company’s operations in the financial services industry and other sectors. OIH will remain listed on the EGX and will retain all of its investments in its nine subsidiaries and sister companies apart from those in financial services, which will be transferred to Orascom Financial Holding (OFH). This allows shareholders with a specific interest in one industry to target their investments. (Source: Reuters)

New oil well discovery in Egypt’s Western Desert 

Eni announces the successful drilling of the SWM-A-6X well, in the South West Meleiha development and exploration concession. The new well has been drilled close to existing production facilities and already has a daily output for 5,000 bopd (barrels of oil/day) (Source: Bloomberg)

Fawry stockholders now looking to sell 

A few of Fawry’s mainstockholders are now looking to sell up to 7% of the company’s total stake. The news comes a few days after the company announces its intention to raise EGP 400M to bolster its portfolio of services, as well as start actioning expansion plans in the GCC. (Source: Bloomberg)

Global Pick-up

Pfizer Gets USD 2B for 100M doses of coronavirus vaccine 

American big pharma Pfizer and German biotech BioNTech get US government funding of USD 2B to produce and deliver 100M doses of Covid-19 vaccine. The government placed an initial order of 100 million doses and can acquire up to 500 million additional doses. The deal sets a price ceiling of less than USD 20 a dose, likely impacting how much other companies will charge. (Source: CNBC)

Weekly Thunderstrike!

Egypt remained the most active venture capital market in MENA during H1 2020 with 25% of all transactions in the region.

Topic of the week – What is a stock market?

Dividends: Dividends are a way that companies give back to their shareholders. They are your share of a company’s distributed profits based on how many stocks you own. More profit for the company means more dividends for shareholders. 

Capital Gains: Capital gains is the buying and selling of stocks at a profit. Basically, buying the  stock and then selling it later at a higher price. 

Stock Market Index:

Indexes are like  stock market scoreboards. If you wanna know how the stock market is doing, you follow what is happening to its index.

EGX 30 is the most followed index in Egypt, it takes the stock price of the 30 most liquid companies in EGX (that means the 30 companies that have the highest number of transactions in a day)

Company of the month- Telecom Egypt