{"id":605806,"date":"2023-09-06T00:00:00","date_gmt":"2023-09-06T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/06\/egx30-surpasses-19k-for-first-time-ever-as-inflation-fuelled-bull-run-continues\/"},"modified":"2023-09-06T00:00:00","modified_gmt":"2023-09-06T00:00:00","slug":"egx30-surpasses-19k-for-first-time-ever-as-inflation-fuelled-bull-run-continues","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/06\/egx30-surpasses-19k-for-first-time-ever-as-inflation-fuelled-bull-run-continues\/","title":{"rendered":"EGX30 surpasses 19k for first time ever as inflation-fuelled bull run continues"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>No single story captures the imagination this morning, though we take heart that PMI data out yesterday reinforces our belief that we\u2019re all starting to adapt to (and found workarounds for) our current high-inflation, no-FX reality. <\/p>\n

Other glimmers of sunshine this morning: Hassan Allam Utilities <\/strong> and friends have lined up financing from CIB <\/strong> for a new logistics park, Volvo <\/strong> will assemble electric buses here with MCV<\/strong>, Zooba <\/strong> takes its amazing hawashi on the road as its Gulf expansion drive gathers steam, and we have more details on who could benefit from sweeping investment incentives <\/strong> the Sisi administration recently ordered. <\/p>\n

^^ We have more on all of these stories below and in today\u2019s news well.<\/p>\n

But first: If you haven\u2019t already, <\/strong>it\u2019s time to let us know you\u2019re interested in attending<\/a><\/strong> the Enterprise Finance Forum. <\/strong><\/p>\n

COUNTDOWN- <\/strong> There are just <\/strong> 12 <\/strong> days until the Enterprise Finance Forum, which takes <\/strong> place <\/strong> 18-19 September <\/strong>(Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech \u2014 and of their clients.<\/p>\n

You won\u2019t want to miss this one: <\/strong> Join Basel El Hini <\/strong>(chairman, Housing and Development Bank), Hazem Hegazy <\/strong> (CEO and vice chairman, Al Baraka Bank), Ibrahim El Missiri <\/strong> (CEO, Somabay), Lamyaa Gadelhak <\/strong> (partner, Baker McKenzie), Ashraf Sabry <\/strong> (founder and CEO, Fawry), Dalia Wahba <\/strong> (CEO, Hassan Allam Utilities) and many others for talks on everything from how banks are transforming, to calling the future giants in fintech. Stay tuned for the unveiling of our full list of speakers in the coming days. <\/strong><\/p>\n

Tap or click here to REQUEST AN INVITATION or view the FULL AGENDA.<\/a><\/strong><\/p>\n

We are honored to count some of the region\u2019s most important financial institutions as <\/strong> our partners for this special event. <\/strong>The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, and the IFC. <\/p>\n

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<\/a> Another milestone for the EGX: <\/strong> The benchmark EGX30 closed above 19k forthe first time ever yesterday, notching a new record high as the unprecedented bull run<\/a> on the back of the weaker EGP and soaring inflation continues. The index gained 0.7% during trading yesterday to close at 19,044, up 30.5% YTD.<\/p>\n

Driving the rally: <\/strong>Local investors continued to dominate the market yesterday, accounting for more than 87% of trading. Locals have poured into the market over the past 12 months looking to hedge against currency weakness and record inflation. That has sent the EGX30 soaring 120% in EGP terms since July 2022.<\/p>\n

UPDATE- <\/strong><\/p>\n

<\/a> Where\u2019s that extra USD 150 mn for Eastern Company coming from? <\/strong> Global Investment Holding, the UAE-based firm on course to acquire 30% of Eastern Company<\/a>, will not themselves provide the additional USD 150 mn for manufacturing inputs as the original statement<\/a> from the Madbouly cabinet suggested on Monday. Rather, the company will arrange financing with a syndicate of international banks, which will then be paid back by Eastern. That\u2019s according to Eastern CEO Hani Aman, who sat down with CNBC Arabia yesterday to discuss the agreement (watch, runtime: 10:39<\/a>).<\/p>\n

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

#1- <\/strong><\/a> Zooba is cooking in Kuwait and Bahrain: <\/strong>Our friends at Zooba have signed franchise agreements with Kuwait\u2019s Zan Kuwaitiah restaurant management company and Bahrain\u2019s A Holding Company to open 12 branches in the two Gulf countries, the company said (pdf)<\/a> yesterday. <\/p>\n

Coming, 1Q 2024: <\/strong> The company will open its first locations in the countries \u2014 the Al Khairan Mall in Kuwait\u2019s Al Khairan Pearl City, and Al Liwan Mall in Manama \u2014 in the first quarter of next year. Over the coming five years, the company will open eight restaurants in Kuwait and four in Bahrain.<\/p>\n

AND- Next stop UAE? <\/strong> It looks like the Emiratis will soon get a taste of Zooba, according to the company, which teased another announcement in the coming months. The provider of our morning hawashi now has nine restaurants in Cairo<\/strong>, three in Saudi Arabia (with two more in the construction phase), and one in New York City. <\/p>\n

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<\/a> #2- These are some of the businesses in line for tax exemptions: <\/strong> The government has identified the petrochemicals, green hydrogen, solar energy, EVs, mining, textiles and electronics industries as priority sectors that will benefit from the sweeping package of tax exemptions and other sweeteners<\/a> recently ordered by President El Sisi. That\u2019s according to Asharq Business<\/a>, which reported the news yesterday citing an unnamed official source.<\/p>\n

ICYMI- <\/strong> The president last week instructed the government to exempt priority sectors from all taxes (except for VAT) for five years and to grant them financial and administrative incentives for delivering industrial projects quickly. Expect an abundance of golden licenses and cut-price land for speedy developers. <\/p>\n

More sectors to be added to the list: <\/strong> The government will complete a full list of all the eligible sectors before the end of the year, the source said.<\/p>\n

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

It\u2019s the final <\/strong> day of the <\/strong>Africa Climate Summit<\/a><\/strong> in Nairobi: <\/strong> Prime Minister Moustafa Madbouly, Environment Minister Yasmine Fouad, and Egypt\u2019s UN high-level climate champion, Mahmoud Mohieldin, are among the Egyptian delegation attending the summit, which wraps tomorrow.<\/p>\n

On Day 2 in Nairobi: <\/strong><\/p>\n