{"id":591169,"date":"2023-08-01T00:00:00","date_gmt":"2023-08-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/01\/the-egx50-is-history\/"},"modified":"2023-08-01T00:00:00","modified_gmt":"2023-08-01T00:00:00","slug":"the-egx50-is-history","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/01\/the-egx50-is-history\/","title":{"rendered":"The EGX50 is history"},"content":{"rendered":"

Good morning, ladies and gents.<\/strong> We have a brisk issue for you this morning so let\u2019s jump in. <\/p>\n

<\/a> THE BIG STORY here at home- You can now find out when the power will cut (it <\/strong> just might take you a while). <\/strong> The cabinet yesterday published a full schedule for the rolling blackouts with an eye on giving the public more foresight about when they\u2019ll be left without power. <\/p>\n

Surely there was another way? <\/strong> The schedules are something of a labyrinthine affair that require us to read through hundreds of documents that map the power cuts across governorates down to single streets by the hour. You can view the full Cairo timetables here<\/a> and here<\/a>, and the Giza schedule here<\/a>. <\/p>\n

The good news:<\/strong> Rather than the multiple daily blackouts we\u2019ve seen over the past two weeks, we can now expect to face only a single, hour-long power cut per day under the new schedule. <\/p>\n

Remember:<\/strong> The government was forced into making power cuts across the country last month after an unusually long summer heatwave caused electricity demand to spike. It currently expects the blackouts to continue until at least the end of August<\/a>. <\/p>\n

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<\/a> IT\u2019S A NEW MONTH:<\/strong> Here are the key news triggers to watch out for over the coming weeks: <\/p>\n

#1- PMI:<\/strong> S&P Global will publish Egypt\u2019s purchasing managers\u2019 index on Wednesday<\/strong>. The non-oil private sector contracted at its slowest rate in 22 months in June<\/a> amid signs that inflationary pressures could be easing. <\/p>\n

#2- Interest rates:<\/strong> The Central Bank of Egypt is meeting this Thursday<\/strong> to discuss interest rates. <\/p>\n

What analysts are saying:<\/strong> All seven analysts and economists we spoke to<\/a> think the Monetary Policy Committee will keep rates on hold for a third consecutive meeting while the banking system shores up FX liquidity ahead of an anticipated devaluation later this year. A Reuters poll<\/a> also forecasts rates to remain unchanged. <\/p>\n

#3- Foreign reserves:<\/strong> The central bank will publish July\u2019s foreign reserves figures at the <\/strong> end of this week or the beginning of the next<\/strong>. FX reserves continued to inch up in June, reaching USD 34.81 bn<\/a>. <\/p>\n

#4- Inflation:<\/strong> Capmas and the CBE will publish inflation figures for June on 10 August<\/strong>. Annual urban inflation hit a record high in June<\/a> as the impact of multiple devaluations continued to feed through into the economy. <\/p>\n

Expect another hot print if sugar prices are anything to go by:<\/strong> Sugar producers hiked prices by 26% in July, Asharq Business<\/a> reports, citing the head of the sugar division at the Federation of Egyptian Industries, Hassan El Fandi. Prices jumped to EGP 24k per ton from EGP 19k early in the month according to El Fandi, who said that \u201cthere is no justification for the price hike in light of the available supply.\u201d <\/p>\n

Remember:<\/strong> Food prices account for the largest component in the basket of goods used to measure inflation, and have notched multiple record highs this year. <\/p>\n

HAPPENING TODAY- <\/strong> <\/p>\n

<\/a> RIP EGX50:<\/strong> The Egyptian Exchange will terminate the EGX50 index<\/a> today, eight years af ter its launch. <\/p>\n

The reason: Hardly anyone uses it.<\/strong> The bourse announced the decision after a survey of 17 companies, asset managers, research centers, and investment funds fou nd all but one use d the index. <\/p>\n

Out with the old, in with the new:<\/strong> A new shariah-compliant index<\/a> is set to replace the EGX50 over the coming months. <\/p>\n

<\/a> At the National Dialogue: <\/strong> The National Dialogue will today hold sessions<\/a> on public debt and equal opportunity. <\/p>\n

WATCH THIS SPACE- <\/strong> The government will soon launch a new company allowing Egyptian expats to invest in local projects, Emigration Minister Soha Gendi said yesterday, according to Hapi Journal<\/a>. Expats will be invited to purchase shares in the company, which will make investments in national projects, she said, speaking during a conference in Cairo yesterday. <\/p>\n

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THE BIG STORIES ABROAD-<\/strong> <\/p>\n

The Donald is all over the front pages this morning<\/strong> after a US judge yesterday rejected his requests to end its investigation into whether he interfered with Georgia\u2019s election results in 2020. Criminal charges are expected to be filed in the coming days against the former president, who has been indicted twice in the past four months on separate charges. ( Associated Press<\/a> | Reuters<\/a> | Bloomberg<\/a> | New York Times<\/a> | Washington Post<\/a>) <\/p>\n

Also getting attention:<\/strong> <\/p>\n