{"id":544030,"date":"2022-02-03T13:42:08","date_gmt":"2022-02-03T13:42:08","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/03\/this-evening-macro-group-prices-ipo-pmi-contracts-at-a-faster-pace-in-january-also-el-sisi-heads-to-the-beijing-winter-olympics\/"},"modified":"2022-02-03T13:42:08","modified_gmt":"2022-02-03T13:42:08","slug":"this-evening-macro-group-prices-ipo-pmi-contracts-at-a-faster-pace-in-january-also-el-sisi-heads-to-the-beijing-winter-olympics","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/03\/this-evening-macro-group-prices-ipo-pmi-contracts-at-a-faster-pace-in-january-also-el-sisi-heads-to-the-beijing-winter-olympics\/","title":{"rendered":"THIS EVENING: Macro Group prices IPO + PMI contracts at a faster pace in January + ALSO: El Sisi heads to the Beijing Winter Olympics"},"content":{"rendered":"

Happy Thursday, wonderful people.<\/strong> It\u2019s a busy afternoon as we hurtle towards the weekend (and the nearest TV to watch the Pharaohs at the Afcon semi-finals today).<\/p>\n

<\/a> It\u2019s interest rate day at home + in the eurozone:<\/strong> Analysts participating in our regular rate poll<\/a> don\u2019t see incoming rate hikes in the US and rising inflation at home as being enough to prompt the Central Bank of Egypt\u2019s (CBE) monetary policy committee to hike interest rates when it meets late this afternoon. Our poll participants tell us they see the policy rate being left unchanged at 8.25% for the next six weeks. Our real interest rate, the highest in the world, leaves Egypt well-positioned to withstand the initial phase of the Fed\u2019s tightening cycle while inflation remains easily within the central bank\u2019s target range.<\/p>\n

The CBE meets right as the European Central Bank (ECB) and Bank of England (BoE) wrap up their own policy meetings \u2014 each with different outcomes.<\/strong> In the UK, the BoE agreed<\/a> to a 25 bps rate hike as it looks to rein in its own inflation figures, which the central bank expects to hit 7% in the coming months as a result of low unemployment and higher energy prices. The ECB has decided to leave its key interest rates unchanged, which will remain the case \u201cuntil it sees inflation reaching 2% well ahead of the end of its projection horizon and durably for the rest of the projection horizon,\u201d the bank said<\/a>. The meeting came against a backdrop of higher-than-expected inflation on the back of soaring energy and food prices.<\/p>\n

<\/a> THE BIG STORIES TODAY-<\/strong><\/p>\n

#1- Macro Group Pharma has priced its IPO at EGP 4.85 per share<\/strong>, according to a<\/a><\/a>statement (pdf)<\/a> out earlier today. The company\u2019s final price announcement is at the lower end of the EGP 4.85-5.55 range on which sole global coordinator EFG Hermes had previously guided. Shareholders are offering up to 45.8% of the company for sale (c.264.5 mn shares) in the IPO, with the subscription to the retail offering set to close on Monday, 7 February.<\/p>\n

The company expects its shares to begin trading on the EGX \u201con or around\u201d next Thursday, 10 February<\/strong>, under the ticker MCRO.CA.<\/p>\n

#2- Business activity contracts at a faster pace in January:<\/strong> Activity in Egypt\u2019s non-oil private sector contracted for a 14th consecutive month in January, with data signaling a \u201csolid and faster deterioration\u201d last month, according to IHS Markit\u2019s Purchasing Managers\u2019 Index (PMI) survey (pdf)<\/a>. The decline was driven primarily by \u201cweak demand\u201d leading to lower new orders and output levels, which respondents linked to input inflation and supply chain snags. Our PMI reading fell to 47.9 in January \u2014 its lowest since April 2021 and below the 48.2 series average.<\/p>\n

^^ We\u2019ll have more on these stories<\/strong> and others in Sunday\u2019s edition of EnterpriseAM<\/strong>.<\/p>\n

** CATCH UP QUICK<\/strong> on the top stories from today\u2019s EnterpriseAM<\/strong>:<\/p>\n