CBE leaves interest rates unchanged

June 21, 2021

EGX 30: 9,865, weekly change (-1.1% ), YTD (-9.0%)
Traded Value 1W Avg: EGP 407M, ( -11.4% ) below 90D Avg.
EGP:USD: 15.65 (+0.1% ) weekly change 

Local Pick-ups

CBE leaves interest rates unchanged

The monetary policy committee (MPC) of the Central Bank of Egypt has decided to leave interest rates unchanged for the fifth consecutive meeting. The overnight deposit & lending rates are 8.25% and 9.25% respectively. The committee’s decision to keep rates unchanged remains consistent with achieving the targeted inflation rate of 7% (± 2 percentage point) on average in Q4 2022. (Press release)

Egypt Kuwait Holding to convert the currency of its shares into EGP

Egypt Kuwait’s holding has decided to convert the currency of its shares from USD to EGP. It’s up to the shareholder to convert all or part of their USD shares into EGP denominated. The requests for currency conversion has started on June 15, 2021 and will end on September 14, 2021. EKH is one of the leading investment companies with a diversified investment portfolio that includes fertilizers, petrochemicals, energy & others. You’ll soon be able to buy EKH stocks on Thndr. (Press release)

Raya to issue EGP 585M securitization bond

Raya Holding Company for Financial investments is preparing to issue EGP 585M securitization bond for its subsidiary, Aman Financial services. The company is also preparing for the prospectus to send it to the FRA. It is expected that the issuance will be divided into two tranches.(Zawya)

Other Local Headlines

  • IDH plans to invest EGP 300M to open 19 new branches in Egypt by end of 2021.
  • E-finance gets approval of the government’s IPO committee to value its shares.
  • CIRA to establish the first applied tech university in Egypt
  • OIH signs contract to manage the sound & light shows at Giza Pyramids.
  • Aman Holding, Raya subsidiary, submitted a request to the FRA to get a license to finance SMEs.

Global Pick-up

Google’s adtech business set to face formal EU probe by year-end

Google could face its biggest regulatory threat, with EU antitrust regulators set to open a formal investigation into its lucrative digital advertising business before the end of the year, said people familiar with the matter. It would mark a new front by the EU competition enforcer against Google. It has in the last decade fined the company more than 8 billion euros ($9.8 billion) for blocking rivals in online shopping, Android smartphones and online advertising. (Reuters)

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Word of the week – Growth stock 

A growth stock is a stock of a successful company that has higher than the average growth rate in its revenue and earnings as it outperform the average company in the same sector. Growth stock companies usually pay little or no dividend as they re-invest their earnings to expand the business. In most cases, they have a higher than average PE ratio and ROE.

Book of the week – The Ride of a Lifetime

Written by Robert Iger, the CEO of Disney Company, He shares the challenges, stories and the lessons he has learned while leading a 200,0000 employees company. Iger shares the pillars of his leadership philosophy such as optimism, decisiveness, thoughtfulness & more. (goodreads)

Earnings Call:

  • Housing and Development Bank reported net profits of EGP 651M in Q1 2021., a 8% YoY increase
  • Faisal Islamic Bank reported net profits of EGP 578.5M in Q1 2021, a 19.6% YoY increase.
  • Palm Hills reported net profits of 204.6M in Q1 2021, a 152% YoY increase.
  • Minapharm reported net profits of EGP 119.88M in Q1 2021, a 37% YoY increase.
  • October Pharma recorded net profits of EGP 40.6M in Q1 2021, a 402% YoY increase.
  • B Investments reported net profits of EGP 50.6M in Q1 2021, a 34% YoY increase.
  • GlaxoSmithKline reported net profits of EGP 22.21M in Q1 2021, a 30% YoY decrease.
  • Electro Cable Egypt reported net profits of EGP 9.0M in Q1 2021, a 71% YoY increase.
  • Arabian Food Industries (Domty) reported net loss of EGP 3.43M in Q1 2021 (vs net profits of EGP 32.1M in Q1 2020)