Annual Inflation Rate Rises to 8% in January 2022🎈
|Egypt’s annual inflation rate rose from 6.5% in December 2021 to 8% in January 2022, according to data from CAPMAS.|
More Details🧐 The consumer price index rose by 0.9% on a monthly basis.
The rise is attributed to the increase in food & beverage prices. Sugars & Sugar products rose by 14.7% on a monthly basis, vegetables by 4.3%, dairy products by 2.5%.
Why this Matters🤔 An 8% annual inflation rate is still within the CBE’s target rate of 5-9%. The CBE had kept interest rates unchanged in its last MPC meeting.
EGX Approves Madinet Nasr’s Capital Increase Request✔
The EGX agreed to list 374.4 million Madinet Nasr (MNHD) rights on its database as part of the company’s capital increase.
More Details🧐 MNHD will increase its paid-in capital from EGP 1.5 billion to EGP 1.87 billion through a rights issue.
The right will begin trading Tuesday, February 15, 2022, until March 13, 2022.
Why this Matters🤔 Shareholders who owned MNHD up to February 10th, 2022 will be eligible to subscribe to the rights issue, which has a par value of EGP 1/share.
Macro Reveals 2022 Goals💅
Chairman of Macro Group (MCRO) Ahmed El Nayeb revealed the company’s plans post-IPO.
More Details🧐 Macro aims to raise its exports to 5% of total sales in 2022. The company currently exports to 12 countries, & plans to export to more countries in the MENA region.
Macro targets adding 23-25 new products each year, noting that it currently has around 112 products.
El Nayeb added that Macro will expand its nutritional supplements line, & begin producing pharmaceutical disinfectant products.
Macro’s general director revealed the company’s intention to acquire a cosmeceuticals company with 12 products ready to be put out in the market.
Why this Matters🤔 El Nayeb said the company is targeting a 30% year-over-year growth in total sales this year.
Macro has had a policy of distributing 50% of its yearly net profits in cash dividends, & will continue to go by that policy after it went public.
Macro debuted on the EGX last Thursday, starting off strong with an intraday high 15% above its IPO price, but it was all downhill from there to eventually close down 7%.
U.S. Annual Inflation Rate Rises to 7.5% in January 2022🎈
The U.S. annual inflation rate rose to 7.5% in January 2022, exceeding analyst expectations.
More Details🧐 Core inflation, which excludes the highly volatile food & energy sectors, rose at its fastest rate in almost 40 years, also exceeding expectations.
Why is this Important🤔 The continued surge in the U.S. inflation rate, especially when it exceeds expectations, further strengthens the case for more than three, or even four, interest rate hikes this year.
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