{"id":580538,"date":"2023-01-04T13:45:58","date_gmt":"2023-01-04T13:45:58","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/04\/this-evening-new-25-certificates-from-banque-misr-nbe-pmi-contraction-softened-in-december-pachin-gets-another-suitor\/"},"modified":"2023-01-04T13:45:58","modified_gmt":"2023-01-04T13:45:58","slug":"this-evening-new-25-certificates-from-banque-misr-nbe-pmi-contraction-softened-in-december-pachin-gets-another-suitor","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/04\/this-evening-new-25-certificates-from-banque-misr-nbe-pmi-contraction-softened-in-december-pachin-gets-another-suitor\/","title":{"rendered":"THIS EVENING: New 25% certificates from Banque Misr, NBE + PMI contraction softened in December + Pachin gets another suitor"},"content":{"rendered":"

Good afternoon, friends, and welcome to what has shaped up to be a brisk news day<\/strong>, suggesting the new year lull is good and well behind us.<\/p>\n

PSA- Private sector + EGX will be off on Sunday:<\/strong> The private sector will be off next Sunday, 8 January in observance of Coptic Christmas, the Manpower Ministry said in a statement<\/a> today. The EGX will also be closed, the bourse said in a separate statement<\/a>, after the Central Bank of Egypt announced yesterday that the nation\u2019s bank will be taking the day off. Prime Minister Moustafa Madbouly had announced the day would be a national holiday earlier this week.<\/p>\n

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

<\/a> #1- State-owned Banque Misr and the National Bank of Egypt (NBE) rolled out one-year<\/strong> 25% savings certificates<\/strong>, according to statements from the two banks (here<\/a> and here (pdf<\/a>). The two banks previously introduced<\/a> one-year, 18% certificates of deposit (CDs) last year on the back of the first EGP devaluation in March, which were suspended months later<\/a> on the back of high costs incurred by the banks.<\/p>\n

EGP WATCH-<\/strong> The EGP fell today to breach the 26 \/ USD 1 mark at some banks. The currency has now fallen by over 30% against the greenback since late October when the central bank moved to a durably flexible exchange rate, and by over 66% since last March\u2019s devaluation.<\/p>\n

<\/a> #2- <\/strong>Private sector wraps up the year with softer contraction:<\/strong> Business activity in Egypt\u2019s non-oil private sector continued to contract for the25th consecutive month<\/a> in December, albeit at a softer pace than previous months, according to S&P Global\u2019s purchasing managers\u2019 index (pdf)<\/a>. The PMI index rose to 47.2 in December from 45.4 a month earlier, but remained below the 50.0 mark that separates growth from contraction. The continued contraction came on the back of a surging inflation, a weaker EGP and import restrictions.<\/p>\n

#3- <\/strong>Everyone wants a piece of Pachin: <\/strong>Compass Capital<\/a> has become the latest in a long list of companies to express interest in acquiring a majority stake in Paint and Chemical Industries (Pachin) according to a disclosure to the EGX (pdf)<\/a> from the Financial Regulatory Authority today. Compass has submitted a non-binding offer to purchase between 51-90% of Pachin at EGP 30 a share, becoming the fifth company to express interest in acquiring the regional paint distributor since mid-2022.<\/p>\n

THE BIG STORY ABROAD<\/strong><\/p>\n

Picking up where we left off this morning, the US House Speaker elections are broadly<\/strong> leading the conversation<\/strong> in the international press this afternoon. The story continues to be on the front pages of the Financial Times<\/a>, the Wall Street Journal<\/a>, and Reuters<\/a>.<\/p>\n

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