Good afternoon, ladies and gentlemen. The week is off to a tumultuous start following the US and Israeli attack on Iran yesterday, which prompted a ripple effect of retaliation against Israel and Arab countries.

THE BIG STORY TODAY-

📍 Where things stand in Om El Donia the day after the attack on Iran is all everyone can talk about. The EGP slipped toward the 48.90 per USD mark in mid-day trading today, as tensions triggered a fresh wave of foreign outflows totaling some USD 1.3 bn so far, sources tell EnterpriseAM. While the Central Bank of Egypt is covering exits through a specialized account and the interbank market, officials stressed that reserves remain secure and the exchange rate is allowed to adjust to absorb the shock. Relief is expected this week as USD 2.3 bn in IMF tranches and RSF payments are set to hit CBE accounts.

Despite the volatility, the Treasury is testing market appetite today with an EGP 95 bn T-bill offering that includes a new 11-month maturity, though debt officials warned they will “not accept exaggerated yields” to offset the temporary risk premium. On the ground, importers are monitoring shipping costs amid fears of a Strait of Hormuz disruption, while food markets remain stable thanks to pre-Ramadan stockpiling.

Over on the stock market… The EGX 30 shed 2.5%, closing today’s session at 47.98k, as regional markets reel from a massive geopolitical escalation in the Persian Gulf. The benchmark had dropped as much as 5.6% at the open — briefly touching 46.34k — before paring losses into the close.

The sell-off did not start from a peak. “The EGX was already in a correction phase before yesterday’s events,” Randa Hamed, managing director at Okaz Asset Management, tells EnterpriseAM, noting the index had pulled back from its all-time high of 52.8k to 48.6k by Thursday on profit-taking and valuation reassessments. “The market was not falling from a peak, it was already in the process of finding its footing.” She described the 5.6% opening drop as “an acute panic response to an extraordinary event.”

^^ We’ll have more on these stories and much more in tomorrow’s edition of EnterpriseAM.

THE BIG STORY ABROAD-

🌐 Investor anxiety is mounting as oil prices are expected to jump when trading reopens on Monday in the wake of the attack on Iran, potentially prompting capital flows into safe-haven assets. With the Strait of Hormuz effectively closed, Opec+ has reportedly agreed to boost oil output by 206k bbl / d to cushion regional disruptions, as of the time of publication. Meanwhile, BTC stood at USD 67k this morning, with downward projections widely expected.

^^Read more on: Reuters, the Financial Times, and Bloomberg here and here.

Also in today’s issue: We take a look at why multi-tasking might not be the way to go, dive into the country’s industrial pivot, and recommend your next Ramadan watch.

So, when do we eat? Maghrib prayers are at 5:54pm in the capital, and you’ll have until 4:54 am tomorrow to hydrate and caffeinate ahead of fajr.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• The EGP is likely to come under pressure in the coming days as risk-averse investors pull out of the region, and those staying the course weigh the likely impact on our economy of the storm Washington and Tel Aviv have unleashed;
• Derivatives trading kicked off for the very first time on the EGX with the launch of three- and six-month futures contracts tracking the EGX30 index;
• The government is expanding its flagship industrial support program, with the cabinet approving a broader second phase aimed at injecting fresh liquidity into the sector.

*** It’s Inside Industry day — your weekly Sunday briefing of all things industrial in Egypt. Inside Industry explores what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning through to product distribution, land allocation, industrial processes, supply chain management, labor, automation and technology, inputs and exports, and regulation and policy.

In today’s issue: We take a look at Egypt's industrial pivot as a new era of selective incentives and a “carrot and stick” policy aims to redesign industry around exports.

☀️ TOMORROW’S WEATHER- The cool streak continues with temperatures in Cairo set to peak at a high of just 18°C, with a low of 10°C, according to our favorite weather app.