Retail Investors want to Boycott Trading😬


Local Pickup🌇

Retail Investors want to Boycott Trading😬

Several informal EGX-related groups launched a campaign to boycott trading in the coming period, in protest of unjustified declines during the past few trading sessions, & the state of EGX in general recently.

What’s been happening🤷‍♀️ Retail investors have grown frustrated with the state of the EGX recently for several reasons. The EGX has been unsettled ever since the Ministry of Finance announced the imposition of taxes on capital gains back in September, which received severe criticism from several market participants. 

More recently, the FRA set restrictions on the use of margin trading for listed companies, whereby investors cannot purchase on margin more than 3% of a company’s market cap or 5% of free float shares, whichever is higher.

Social groups also expressed their anger surrounding the announcement by the EGX & FRA, who increased the limit on the temporary suspension of the EGX100 from 5% to 10% mid-session, immediately after the EGX100 fell by 5% three weeks ago. 

Adding fuel to the fire is a string of canceled transactions on stocks that rose significantly in intraday trading, while stocks that fell significantly were left untouched.

The EGX30 daily traded value has declined by 66% reaching EGP 196M yesterday vs trading last Sunday. 

What’s next🤔 We’ll be closely monitoring any advancements in the next few days, maybe weeks. You’ll find updates as the news develops, right in your inbox every morning.

FRA Chairman Calls on Emerging Markets to Finalize ESG Reporting Standards🌱

Chairman of the FRA Dr. Mohammed Omran, has urged all financial market regulators in developing countries to speed up the issuance of ESG disclosure reports & climate change in their markets. 

It’s noteworthy that Dr. Omran is also Chairman of the Growth & Emerging Markets Committee, which is the largest committee within the International Organization of Securities Commissions (IOSCO).

Who is affected🤷 Global institutions are constantly giving more weight to ESG in their investment strategies, & have shifted towards supporting a green economy and environmentally friendly projects.

Why is this important🤔 Finalizing ESG reporting standards will allow financial markets in developing countries to attract more international investment institutions. 

Ibn Sina Establishes Ramp Logistics Services🚚

Ibn Sina Pharma’s (ISPH) investment arm, AIM, has established a third-party logistics services company (3PL), “Ramp Logistics”, with an issued capital of EGP 300 million.

What are 3PL🤷‍♀️ Third-party logistics companies – or 3PL – store your inventory for you. 3PL is the vital link between manufacturing operations & customers, as they collect, pack, & ship products.

Why is this important🤔 Having a subsidiary focusing on warehousing, transportation & other 3PL services will allow Ramp Logistics to expand its storage capacity. “Our expertise in 3PL in a sophisticated market like pharma, opens the door for future expansion in other industries besides pharma,” said Mohsen Mahgoub, Managing Director of Ibnsina Pharma.

Headlines We’re Watching👀

  • EIPICO Reports EGP 359 Million Profit in Nine Months, a 5.6% YoY Increase

  • Egypt Receives 3.5 Million Doses of Moderna Vaccine

  • Palm Hills Records More than EGP 10 Billion in Contract Sales for New Cairo Project

Global Pickup🌎

Pfizer Pill Cuts Risk of Severe COVID-19 by 89%; Stock Jumps 11%💊

Pfizer’s stock jumped 11% after the company announced its COVID-19 Pill proved to reduce the chances of hospitalization or death for adults at risk of serious diseases by 89% in preliminary assessment.

More details🧐 Pfizer’s pill could secure regulatory approval by the end of the year. Pfizer said it plans to submit trial results to the Food & Drug Administration (FDA) by November 25th. The trial was stopped early due to its high success rate.

Why is this important🤔 This is the second pill being developed against COVID-19 after Merck & Co. announced in September a pill that was 50% effective in reducing deaths. The Pfizer & Merck pills are eagerly anticipated, & Pfizer is in active discussions with 90 countries over supply contracts for its pill.

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