U.S. Fed All But Confirms Raising Interest Rates in March🏛

Local Pickup🌇

El Sewedy & GIECO to Renew & Maintain Two Railways in Egypt🛤

A consortium between El Sewedy Electric (SWDY) & Gharably Integrated Engineering Company (GIECO) has won the rights to renew & maintain two railways in Egypt.

More Details🧐 The consortium made the best offers for both projects’ tenders put forward by the Egyptian National Railways Authority.

One project includes the renewal & maintenance of lines, yards & switches in the Delta region, which includes five different lines. The total length of the lines is 110 kilometers (km), including 133 switches.

Railway switches are what enable trains to be guided from one track to another.

The second project includes the renewal & maintenance of the “Nag Hammadi Luxor” line, which has a length of 91km, including 283 switches.

Why is this Important🤔 The total value of the two projects is yet to be determined, as no project assignments have been made yet, let alone final contract signatures.

Madinet Nasr Housing to Focus on Real Estate Development & Investment Only🏡

Madinet Nasr for Housing (MNHD) will be eliminating any activities from their business purposes that it doesn’t engage in, in an effort to shift full focus on real estate development & investment.

More Details🧐 Activities that MNHD will be eliminating include consulting, designing, supervising the implementation for others, & building factories & workshops.

Why is this Important🤔 The FRA recently approved MNHD capital increase request by EGP 374.4 million, bringing its total capital to EGP 1.872 billion at a subscription price of EGP 1/share. 

MNHD closed 2.99% in the green at the end of Wednesday’s trading session.

Orascom Development Ordered to Reduce Land Size of Makadi Heights⚖

Orascom Development’s (ORHD) subsidiary Makadi Heights received a letter from the Tourism Development Authority notifying it to reduce its area of ​​land allocated for development from 3.75 million square meters to 2 million square meters.

More Details🧐 The reduced area of land represents 3.5% of ORHD’s total owned land area (50.25 million square meters as of the end of 2021).

According to a disclosure to the EGX, ORHD stated that Makadi Heights purchased the land according to an official allocation decision from the Egyptian government in 2009, & paid the price of the land in full.

Why is this Important🤔 ORHD added that all phases of the project that have been sold & recently launched are located within the ​​unaffected 2 million square meter area, meaning that customers’ purchases are protected.

ORHD will be appealing the decision, & “will continue to update its shareholders and the market on any relevant developments as they occur.”

Global Pickup🌎

U.S. Fed All But Confirms Raising Interest Rates in March🏛

U.S. Federal Reserve chairman Jerome Powell has all but confirmed the first interest rate hike to come in March 2022, as the Fed faces increasing pressure to control inflation which is well above the 2% target rate.

More Details🧐 While Powell didn’t give away the magnitude of the rise in interest rates, analysts expect an increase of 25 basis points (0.25%).

The rate hike would be the first since 2018, a year that saw four interest rate hikes.

The economy (& inflation) are much stronger than the last time the Fed needed to hike rates, according to Powell, suggesting that rate hikes could come in a more aggressive manner if need be.

Why is this Important🤔 Higher interest rates mean higher borrowing costs, which decrease demand (& therefore price) for key drivers of U.S. inflation, such as cars & homes.

As for the stock market, rising interest rates make other investments more attractive relative to equities.

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