Week ending October 25, 2020

EGX 30: 10,987 (-3.0%) weekly change, (-21.3%) YTD  
Traded Value 1W Avg:
EGP 431M , (-28.9%) above 90D Avg.  
15.70 (0.0%) weekly change 

Local Pick-up

Volatility hits CIB’s GDR amidst executive changes

CIB’s global depositary receipts (check word of the week) listed on the London stock exchange dropped to USD ~2 and then rebounded back to USD ~4 towards the end of the week.

This follows confirmed news that Hisham Ezz Al- Arab decided to step down as Chairman and Managing Director of CIB after the bank’s board of directors had convened to discuss contents of a letter received by the Central Bank of Egypt (CBE) on Oct 22nd.

CIB is currently investigating all issues raised in the letter issued by the central bank and has appointed Sherif Samy, former chairman of Egypt’s Financial Regulatory Authority,  as non-executive chairman.

Hussein Abaza, CIB’s CEO and board member since March ‘17, continues to oversee business functions.

Trading on the stock was halted on Thursday pending the official announcement and it will be resumed today. 

Image: CIB GDR 3D chart

UAE’s ADQ Holding will invest USD 1B in retailer LuLu’s Egypt expansion

One of the region’s largest holding companies, ADQ Holding,  is paving the way for an investment that will see retailer giant LuLu expand its operations in Egypt of up to USD 1 billion. Under the terms of the agreement, ADQ and LIHL will work to collectively develop up to 30 hypermarkets and 100 express minimarket stores as creating up to 12K jobs.

EPICO new EGP 1.2B biosimilar project receives loan proposals from local banks

EPICO received several proposals for a EGP 800M loan for its new biosimilar project. The project is expected to be 50% debt funded and the remaining from internal resources. 

Global Pick-up

PayPal hits all time high on Bitcoin news

PayPal shares soared after the payments company announced that it would soon be including crypto assets on its platform. PayPal plans to integrate Bitcoin (BTC), Etheruem (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) offerings into their network in 2021. With 346M active accounts, PayPal has a bigger reach than other crypto-slinging fintechs. The company’s shares are considered the best performer on the S&P 500 index after the shares went up by ~90% over the past year.

Market wrap up

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

Weekly Thunderstrike!

“Over the last 21 years, CIB’s market capitalization grew to more than USD 6B from USD 150M” – Hisham Ezz El-Arab

Word of the Week

Global Depositary Receipts (GDRs) are securities offered by companies on the foreign exchanges so that they can increase foreign ownership. Each GDR represents a particular number of shares in a specific company.