{"id":624855,"date":"2018-09-20T04:12:38","date_gmt":"2018-09-20T04:12:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/20\/what-were-tracking-on-20-september-2018\/"},"modified":"2018-09-20T04:12:38","modified_gmt":"2018-09-20T04:12:38","slug":"what-were-tracking-on-20-september-2018","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/20\/what-were-tracking-on-20-september-2018\/","title":{"rendered":"What we\u2019re tracking on 20 September 2018"},"content":{"rendered":"

<\/a> **#2 The EGX fell yesterday to its lowest close this year<\/strong>, marking its sharpest one-day drop since mid-2016, according to Reuters<\/a>. The EGX fell 3.8% on Wednesday only a few days after the benchmark EGX30 closed down 3.6%<\/a>, at the time its lowest level since January 2017.<\/p>\n

What\u2019s going on? <\/strong>Local retail and institutional investors are selling \u2014 they\u2019re spooked by fears of face another round of devaluation, lack of liquidity in the market, worries about interest rates and general \u201cemerging market jitters,\u201d Reuters said after speaking with analysts in Dubai and Cairo.<\/p>\n

SANITY CHECK- <\/strong>Emerging markets whack-a-mole is a distraction<\/strong><\/a>. <\/strong>If the EM Zombie Apocalypse has you freaked out, read nothing else this morning until you digest Fidelity PM Paul Greer\u2019s piece for the FT, which cogently argues that \u201cThe longer-term strategic case for EM is still very much in place. EM debt gives you access to a high growth, portfolio diversification and generous real yields. With 50 percent of global GDP now coming from EM, and healthy Sharpe ratios over the cycle, it is clear the asset class cannot be ignored over the long term.\u201d<\/p>\n

STAT OF THE MORNING: There are only 14 mn insurance policies in the market today. <\/strong>This in a nation of >100 mn people. Source: Financial Regulatory Authority deputy head Reda Abdel Moaty in a panel discussion last night moderated by Masaa DMC host Osama Kamal (watch, runtime: 4:11<\/strong><\/a>).<\/p>\n

An IMF delegation will arrive in Cairo at the end of October for its fourth review <\/strong>of the Madbouly government\u2019s economic reform program ahead of unlocking another tranche of the USD 12 bn extended fund facility, Finance Minister Mohamed Maait said at a luncheon<\/a> hosted by our friends at the American Chambers of Commerce. Maait spoke on a host of issues during the talk, including on the new tax code, which he said would not impact tax rates this year<\/strong>. The highlight of his talk, however, was Egypt\u2019s plan to tap the global debt market next year and the impact on Egypt of the ongoing turmoil in EM. We have more in Speed Round, below.<\/p>\n

AWB defendants out on bail today? <\/strong>Defendants including Alaa and Gamal Mubarak and former EFG Hermes co-CEO Yasser El Mallawany will be appearing in court today for a hearing that could determine if they will be released on bail pending a court review of an expert committee review that had suggested charges against them could be dropped. Word on the street is that a settlement agreement is in the works<\/a>. The defendants have also filed a motion for the court\u2019s judges to recuse themselves, according to Youm7<\/a>.<\/p>\n

The Electricity Ministry will sign today EGP 6.3 bn worth of contracts with Siemens<\/strong> to manage the three combined-cycle plants in Burullus, Beni Suef and the new capital, said ministry sources<\/a>. Payment for the right-year operations and maintenance contract will be split into an EUR 176 mn foreign-currency tranche and a EGP 2.6 bn LCY-denominated component. Payment will begin in four years and will be disbursed over an eight year period. The contracts were initially to be signed back in July<\/a>.<\/p>\n

Goldman Sachs has a new co-head of investment banking. <\/strong>Dan Dees replaces John Waldron, who was last week promoted to president, Bloomberg reports<\/a>. New York-based co-head Gregg Lemkau and London-based Marc Nachmann remain in place, the Financial Times<\/a> adds. The shifting of execs around like pieces on a chessboard comes as Lloyd Blankfein prepares to hand over the reins of power at month\u2019s end. The appointment came as Goldman \u201cvaulted past Citigroup\u201d<\/strong><\/a> to become the second-largest global investment bank by revenue. JPMorgan remains in the pole position.<\/p>\n

In miscellany today:<\/strong><\/p>\n