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EK Holding’s EGP shares start trading today🔔

Daily Markets Summary

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What’s Clapping Today👏: Egyptian Kuwaiti Holding’s EGP shares start trading today. Pioneers Holding submits request to FRA for listing divided companies. CBE leaves interest rates on hold. And graphic design platform Canva is now the world’s most valuable female-founded startup at a $40 billion valuation!

Local Pickup🌇

Egyptian Kuwaiti Holding’s EGP shares start trading today🔔

Egyptian Kuwaiti Holding (EKHO) shares converted into EGP will start trading starting from today’s trading session.

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Who is affected🤷: In a statement to the EGX, the company explained that the number of EKHO shares that will be traded in EGP on the EGX is ~461 million shares, representing ~68% of the available and traded shares on the EGX. The remaining shares will continue to be traded in USD. All shares, however, including those in EGP continuing to receive dividends in USD. A distinctive feature for EKHO shareholders.

Why is this important🤔: EKHO is one of the biggest companies on the EGX in terms of market cap, totaling $1.3 billion (EGP 20.5 billion), making it the sixth-largest company in terms of market cap. EKHO has a solid profits track record in recent years as its 3-year net income compounded annual growth rate of 9% suggests. EKHO has a return on average equity (ROAE) of 17.86%, & a Thndr Score of 3.30/5.00.

Pioneers Holding submits request to FRA for listing of divided companies➗

Following the extraordinary general assembly’s meeting, Pioneers Holding (PIOH) submitted a request to the FRA to register the two divided companies resulting from the division of PIOH into three companies on the EGX.

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Who is affected🤷: The division would mean the establishment of a first divided company under the name “Pioneers Properties for Urban Development”, which includes under its umbrella ten companies specialized in contracting and real estate activity, including El Kahera Housing and Development (ELKA). As for the second divided company with the name “Gadwa for Industrial Development”, it includes under its umbrella eight companies specialized in industrial activity, among them the Arab Company for Dairy Products (ADPC).

Why is this important🤔: Pioneers Properties for Urban Development has paid-up capital of EGP 4.74 billion distributed over 1.05 billion shares at a nominal value of EGP 4.5 apiece, while Gadwa Industrial Development has paid-up capital of EGP 2.00 billion distributed over 1.05 billion shares at a nominal value of EGP 1.9 apiece. The company expects the division process to contribute to reviving trading in its shares by attracting new segments of investors with diversified investment interests, whether in the financial, real estate, or industrial sector.

Central Bank of Egypt leaves interest rates on hold⚖️

The Monetary Policy Committee (MPC) of the CBE decided to maintain the overnight deposit rate, lending rate, & the main operation rate at the levels of 8.25%, 9.25 % & 8.75%, respectively, in its meeting on Thursday. The MPC also maintained the discount rate at 8.75%.

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Who is affected🤷: The decision to hold rates comes mainly off the back of the rise in the annual inflation rate in August to 5.7%, up from 5.4% in July. The rise in inflation had come off of the rise in annual food inflation, which had risen for the fourth consecutive month. On the other hand, the annual inflation rate was offset by the fall in annual non-inflation to 5.3% in August from 5.7% in July. The MPC decided that holding interest rates are consistent with achieving the target inflation rate of 7% (± 2 percentage points) on average during Q4-2022.

How are interest rates & inflation rate related🤔: Generally, interest rates and the rate of inflation tend to have an inverse relationship. For example, as interest rates decrease, more people are able to borrow more money. This results in consumers having more money to spend, which causes the economy to grow and inflation to increase. And vice-versa, as when interest rates rise, people tend to save more & spend less, which slows down economic growth & decreases inflation. 

More Headlines📰

  • Elsewedy Electric to open 3 new factories in Tanzania next December
  • CBE signs a protocol to develop an e-payment system within the transport sector
  • Alaa Amer elected chairman of MCDR
  • Minister of Health: 13 million Egyptians have received the COVID-19 vaccine
  • KIMA capital raise subscription covered by 73.39% 

Global Pickup🌎

Canva becomes most valuable female-founded startup in the world✨

Graphic design platform Canva is now valued at $40 billion following a capital injection of $200 million in a round led by T. Rowe Price. For reference, Canva’s valuation stood at $3.2 billion less than two years ago. Bravo!

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Who is affected🤷: The $40 billion valuation makes the Australian-born startup the most valuable female-founded & female-led startup in the world, as well as the fifth-most valuable private startup in the world, edging Instacart’s $39 billion valuation. If you’re wondering who tops the most valuable private startup list, well it’s no other than TikTok’s creator ByteDance, reportedly valued between $300-$400 billion!

Why is this important🤔: Canva has 60+ million monthly active users in 190 countries, companies like Salesforce, Marriott, and PayPal all use its enterprise plan. More than 20 million users sign in to Canva each month across 190 countries, with 85% of Fortune 500 companies using the product, according to the company. Canva plans to use the funding to double its current 2000-person workforce, & expand into web design and video editing tools.

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