{"id":604219,"date":"2023-08-28T00:00:00","date_gmt":"2023-08-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/28\/egx30-notches-record-high\/"},"modified":"2023-08-28T00:00:00","modified_gmt":"2023-08-28T00:00:00","slug":"egx30-notches-record-high","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/28\/egx30-notches-record-high\/","title":{"rendered":"EGX30 notches record high"},"content":{"rendered":"

Good morning, ladies and gents. <\/strong> It\u2019s all about investment and industry this morning as the Sisi administration doubles down on its two-pronged industrial strategy (localization + FDI) with a fresh batch of incentives aimed at accelerating manufacturing growth and drawing more foreign investment. This came on the same day as news broke of two new manufacturing projects led by Russian and Chinese firms that together could attract hundreds of mns of USD into the local economy.<\/p>\n

ALSO- <\/strong>Mystery investors want a piece of Middle East Glass and UAE-based payments outfit Network International is looking to invest more here.<\/p>\n

AND- Yesterday was a big day on the bourse and for one of Egypt\u2019s key foreign policy challenges<\/strong>, with the EGX30 notching a record high. <\/p>\n

WATCH THIS SPACE- <\/strong>Egypt, Ethiopia and Sudan finally restarting GERD talks after two years of stasis. Whether they\u2019ll be able to hash out an agreement within the November timeframe mentioned last month, we\u2019ll have to wait and see.<\/p>\n

^^ More on all of these stories below.<\/p>\n

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MARKET WATCH- <\/strong><\/p>\n

<\/a> EGX hits record high: <\/strong> The EGX30 closed at an all-time high yesterday, continuing a bull run triggered by the currency devaluations and soaring inflation that have seen the exchange\u2019s market cap more than double in EGP terms over the past year. The benchmark index closed 1.7% higher yesterday at 18,517, eclipsing the previous record set in 2018. <\/p>\n

Driving the rally: <\/strong> Local investors have poured into the market as they have looked to for an edge against devaluation of the EGP and soaring inflation. The EGX30 is up 114% in EGP terms since the market\u2019s most recent low in July 2022. Local investors are running the market right now <\/strong>\u2014 they accounted for just over 75% of trading yesterday. <\/strong><\/p>\n

Up and down: <\/strong>Alexandria Containers led gainers yesterday, closing up 5.6%. Credit Agricole Egypt (+4.0%) and state fintech player E-Finance (+3.4%) also rose significantly. Real estate players led decliners yesterday, but with modest dips: Heliopolis Housing was down 0.7%, as was Palm Hills Developments.<\/p>\n

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

Flat6Labs\u2019 Makers accelerator starts: <\/strong> Flat6Labs\u2019 12-week construction tech accelerator program begins today. The program, dubbed Makers<\/a>, is designed to provide support to construction technology startups in Egypt in partnership with SIAC and Dar Al-Handasah. Selected start-ups from the program will receive up to USD 100k per venture in addition to mentorship, business training, and access to networking events.<\/p>\n

HAPPENING THIS WEEK- <\/strong><\/p>\n

Deadline day for the Smart Green Projects initiative: <\/strong> Submissions for the second phase of the Smart Green Projects initiative<\/a> will be due on Friday, 1 September<\/a>. The second iteration of the government-led initiative<\/a> is accepting applications for projects working on addressing issues like energy, emissions reduction, sustainable agriculture and green buildings. Shortlisted projects will get the chance to present their vision during COP28. The top three contenders in six categories are also awarded prizes between EGP 250k and EGP 750k.<\/p>\n

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WATCH THIS SPACE- <\/strong><\/p>\n

<\/a> Gold could hit the EMX in September: <\/strong> Gold seized by the Customs Authority could be sold through auctions on the Egyptian Mercantile Exchange (EMX) \u2014 FKA the Egycomex \u2014 in September, Assistant Supply Minister and EMX head Ibrahim Ashmawy said on Ala Masouleety on Saturday night (watch, runtime: 5:29<\/a>). The ministry is studying selling gold bullion, silver and other precious metals on the exchange, Ashmawy said. <\/p>\n

Up next for EMX listing? <\/strong> It\u2019s unclear when gold could make it into the EMX, after EGX comms head Hesham Turk told local media in May that neither gold or aluminum<\/a> will begin trading on the exchange this year. Sugar was the fourth commodity to make its debut on the EMX<\/a> earlier this month after wheat<\/a>, yellow corn<\/a>, and bran.<\/p>\n

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

DNA results confirm Wagner chief\u2019s death: <\/strong> Russian investigators announced yesterday that DNA tests have confirmed the death of Yevgeny Prigozhin, the former head of Russian military contractor the Wagner Group who died in a plane crash last week. (Associated Press<\/a> | Reuters<\/a> | Bloomberg<\/a> | Financial Times<\/a> | New York Times<\/a> | Wall Street Journal<\/a>)<\/p>\n

As is customary for a Monday morning, it\u2019s slow on the international business news front <\/strong> as Western markets and the UAE start their new business week later today. \u201cSlow\u201d will likely set the tone for the week in international markets as folks cling to the last days of summer. We have:<\/p>\n