Last Week’s Market Summary
EGX 30: 10,808 (-0.7%) weekly change, YTD (-0.34%)
Traded Value 1W Avg: EGP 469M, (+3.6%) 90D Avg.
EGP:USD: 15.70 (0.0%) weekly change
Sovereign Sukuk Act signed into law🖋️
President Abdel Fattah El Sisi has signed the Sukuk Act into law on Wednesday, August 18, 2021.
The discussions in the House of Representatives witnessed a state of controversy. Supporters of the bill unanimously agreed that it aims to introduce new mechanisms to finance investment projects and stimulate the request for government issuances and securities. While disputers of the act fear that the sovereign Sukuk would turn into a tool for raising funds without benefiting from them.
The law aims to create a new type of government securities called “sovereign Sukuk”, to finance the state’s general budget, and investment, economic, and development projects listed in the state’s general budget. The law would attract new Egyptian and foreign investors, who prefer Sharia-compliant investments.
SWVL wastes no time with global expansion🚍
SWVL is set to acquire Shotl, a Barcelona-based multiservice collective mobility platform.
Shotl is working to meet the challenges posed by the absence of transportation services in suburbs, cities, and university buildings, through an easy-to-use, flexible and sustainable application platform. Shotl’s presence spans 22 cities in 10 countries, including Brazil, Japan, and around Europe. So far, Shotl has more than 350,000 reservations, capturing more than 10% of the European market share along the way.
Adding Shotl to SWVL’s portfolio results in the establishment of a strong foothold in Europe, which would lead to more than doubling SWVL’s geographic footprint with the addition of 22 cities in 10 countries, raising SWVL’s total portfolio to 32 cities in 16 countries.
22% increase in the value of exports & 11% increase in imports📦
Minister of Trade and Industry, Dr. Nevin Gamea, announced that Egyptian non-oil exports achieved a significant increase of 22% during the first 7 months of 2021, reaching $17.7 billion, compared to about $14.55 billion during the same period in 2020.
The report indicated that the top five receiving markets for Egyptian exports during the first seven months of this year included the United States of America, Turkey, Saudi Arabia, Italy, and the UAE, in that order. The report added that the top 5 exporting countries to the Egyptian market during the first 7 months of 2021 included China, the United States of America, Germany, Russia, and Turkey, in that order.
The increase in Egyptian exports came thanks to the great efforts made by the government to support the production and export sectors during the Covid-19 pandemic, which contributed to the efficiency of the production wheel and the preservation of export markets.
- Qalaa says chairman Ahmed Heikal settles $4 million cheque lawsuit
- Amer Group’s Delmar signs deal to run Marriott Residence Heliopolis project
- Elsewedy Electric’s United Metals obtains $25m loan from EBRD
- CIRA gets cabinet’s approval on Badr University in Assiut
- 60 flights from Russia to Hurghada and Sharm El-Sheikh as of August 27
Facebook launches virtual-reality remote work app; a step to the ‘metaverse’🌌
On Thursday, Facebook launched a test of a virtual-reality remote work app, “Horizon Workrooms”, where people can hold meetings as avatar versions of themselves. Facebook CEO Mark Zuckerberg dubs this step as the first on the way to Facebook becoming a ‘metaverse’ app.
What on earth is a metaverse, you ask? A metaverse is a virtual universe where people would use digital avatars and VR to interact. Instead of something you look at on a screen, the metaverse is an internet you can be inside of.
In its first full VR news briefing, the company showed how Workrooms users can design avatar versions of themselves to meet in virtual reality conference rooms and collaborate on shared whiteboards or documents, still interacting with their own physical desk and computer keyboard.
The term ‘metaverse’ has been referenced in several recent earnings calls by tech CEOs including Zuckerberg, gaming company Roblox David Baszucki, and Microsoft’s Satya Nadella, who have talked about how their companies could shape aspects of this futuristic realm.
- Egyptian Co. For Construction Development – Lift Slab Misr (EDBM) reported net profits of 78 thousand, a 79% YoY decline
- Oriental Weavers Carpets (ORWE) reported a consolidated net profit of EGP 599.009 million in H1-2021, a 164% YoY increase
- EFG Hermes Holding (HRHO) posted a consolidated net profit before minority interest of EGP 698 million in H1-2021, a 67% YoY increase
- Palm Hills Developments (PHDC) posted a consolidated net profit EGP 461.4 million in H1-2021, a 67% YoY increase
- Elsewedy Electric (SWDY) reported a consolidated net profit EGP 1.58 billion in H1-2021, a 73% YoY increase
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