Week ending September 4, 2020

EGX 30: 11,181 (-2.5%) weekly change, (-19.9%) YTD  
Traded Value 1W Avg:
EGP 589M , (-13.8%) above 90D Avg.  
15.84 (-0.2%) weekly change 

Local Pick-up

Egypt’s external debt falls for the first time in years reaching USD 111B 

The Central Bank reported that the ratio of external debt to GDP fell to a safe 31.7%. Banking sources also said that the CBE paid more than USD 17B to foreign funds throughout March and April. (Source: Arab News)

Elsewedy Electric is set to build a new substation in Sadat City, Egypt after signing a new turnkey contract

El Sewedy Electric, the leading Wires & Cables and Integrated Energy Solution Provider in MENA, announced the signing of a EGP 356M turnkey contract to build an electric substation that will be implemented over a 14-month period. (Source: Zawya)

Egypt secures USD 2B COVID financing package

To plug COVID budget shortfalls, Egypt closed a USD 2B one year financing package with regional and international banks. This would be the third major borrowing for Egypt after the IMF disbursed a USD 2.8B rapid financing instrument, and green-lit a USD 5.2B standby loan. (Source: Enterprise)

Global Pick-up

Netflix launches FREE streaming site, no subscription required

In a global expansion effort, Netflix launches a free streaming site. No more one original user and three more alter-ego’s on the same account necessary. With no subscription or credit card required, there’s a catch— Netflix will only be making 10 shows and movies available to its non-paying users. Even though these shows include bingeable titles like Stranger Things, Bird Box, and Love is Blind, only the first episode of each show will be available before they push you to subscribe. Movies are there in full, but you will also be shown a Netflix skippable ad.

Weekly Thunderstrike!

Zoom’s CEO net worth jumped USD 6.6B in just 24 hrs after the company announced a 355% increase in revenue Y-o-Y. 

Topic of the Week – Thndr Rules of Investing

# 5 Invest Regularly

Trying to time the market by buying and selling orders around market price movements most likely ends up being a fool’s errand. Some people could have good sense but it’s impossible to know when markets will go up and down.

The best way around this is to have a regular investment cycle, it could be with every paycheck. So, you invest a small amount of money consistently every month. This way you take the emotion out of investing, it’s not a hit and run, it becomes a regular routine.

Stock market trends are usually upward trends on the long run, if you stick to your regular investment cycle—you’ll end up buying more shares when prices are lower and less shares when prices are higher.

# 6 Diversify Your Portfolio!

You know the old saying, “Don’t put all your eggs in one basket”? This applies perfectly here. When it comes to investing, spread your investments over different asset classes and sectors. This way you soften the blow of losing money if one of your investments flop.

Let’s say you’ve invested in an oil company and oil prices just went down. But, you’re not worried – because you also invested in a cement company that is now making it big because of lower production costs caused by the dip in oil price.

Your stocks will go up and down, let’s try and make sure they don’t do it together.

The next level of diversification is spreading out your investments over different asset types. You can invest, stocks, bonds and gold all together. Different assets won’t be affected by the same factors and you get to strategize differently for each.

Now that you know the rules of thumb when it comes to investing, you can start making some money.