The Fed Will Be More Aggressive in Taming Inflation🏛

Local Pickup🌇

Madinet Nasr Housing Agrees to Acquire Two Real Estate Companies🏘

Madinet Nasr for Housing and Development (MNHD) agrees to acquire two real estate companies & increase capital.

More Details🧐 MNHD board of directors (BoD) approved the acquisition of Mink for Real Estate Investment & EGYCAN Properties for a combined total of EGP 232 million, after an independent fair value study of both companies.

MNHD’s BoD also agreed to increase the company’s issued capital by EGP 374.4 million, raising it to EGP 1.872 billion from EGP 1.498 billion. MNHD will issue 374.4 million shares at a par value of EGP 1/share.

Nile City Investments Agrees to Begin Delisting Procedures📃

Nile City Investments (NCIN) agrees to proceed with the delisting procedures from the EGX. 

More Details🧐 Earlier this month, the EGX notified NCIN that it must proceed with the mandatory delisting of its shares due to the company not extending its legal life which reportedly ends in October 2022. NCIN BoD will review the extension of the company’s legal life next year, which is past the deadline that the EGX imposes, causing the EGX to issue a mandatory delisting order of NCIN.

What If I Own NCIN🤔 The company must purchase freely traded shares from shareholders at a price no less than the fair value determined by an independent financial advisor. NCIN assigned Baker Tilly Consulting to conduct a fair value study of the share.

3-Stage Penalties for Recommending Stocks on Social Media❌

Backdrop👈 Earlier this month, the FRA issued a statement banning the publishing of recommendations & advice related to EGX-listed securities on social media platforms. 

More Details🧐 The details of that statement include progressive penalties, in the form of three stages of punishment, according to Al Mal.

The first stage, where no benefits or harms result from the publishing, includes a fine ranging from EGP 50,000 to EGP 1 million, or imprisonment, or both.

The second stage, where the advisor benefits from publishing recommendations, is a penalty of & a fine ranging from EGP 1 million to EGP 10 million.

In the third stage, where publishing recommendations harm the market, a prison sentence of 3 to 10 years will be imposed, in addition to a fine of more than EGP 10 million.

Why is this Important🤔 The EGX witnessed unjustified increases for certain stocks fueled by insider trading. The FRA was prompted to investigate those traders & take sharper measures to ensure fair trading on the EGX.

Global Pickup🌎

The Fed Will Be More Aggressive in Taming Inflation; U.S. Stocks Jump🏛

The U.S Fed announced plans to double the pace at which it tapers its bond-buying program put in place at the start of the pandemic. The Fed also expects to raise interest rates three times next year to tame “persistent inflation”.

More Details🧐 Starting January 2022, the Fed will begin decreasing its bond purchases by $30 billion a month instead of the $15 billion it had previously announced. Once tapering is complete sometime mid-2022, the Fed expects to start raising interest rates, which were left unchanged at this week’s meeting.

Why is this Important🤔 Ending the bond purchases earlier would give the Fed more flexibility to raise interest rates sooner, to keep inflation from spiraling out of control. The S&P 500 was down 0.2% earlier in the trading session but rose to a 0.5% gain after the Fed announced the results of its latest meeting.

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