Daily News Report - March 29, 2018

Transcription

1 Interest Rates Exchange Rate Gold Brent Crude Oil Deposits Lending USD/EGP USD/ounce USD/barrel 17.75% 18.75% Source: CBE & Bloomberg MACROECNOMICS Egypt Sets the Price of the Customs Dollar at EGP16 during April The Suez Canal Applies the Previous Navigation list and Charges the Total Tonnage Manufacturing Index Down during January 2018 SECTORS FRA Approves New Listing Regulations that Raise Free Float Requirement COMPANIES EFG Hermes Has Received Regulatory Approval to Offer Factoring Services in the Egyptian Market this Year The Egyptian Stock Exchange Examined the Documents of Increasing the Capital of the Electro Cable Company for EGP711mn General Authority for Investment Refuses to Approve Golden Coast General Assembly Decision to Increase Capital Egypt Sets the Price of the Customs Dollar at EGP16 during April The Ministry of Finance decided to continue to fix the dollar rate of customs at EGP16 during the month of April, for the sixth month in a row. The Ministry of Foreign Affairs has announced the stabilization of the dollar exchange rate at EGP16 last October for the first time, after the reduction of 50 piasters in August and September last year. According to the Ministry of Planning, Follow-up and Administrative Reform, the inflation rate recorded 14.3% in February 2018, achieving the lowest level since July 2017, when it reached 34.2%. (Arab Finance)

2 The Suez Canal Applies the Previous Navigation list and Charges the Total Tonnage The Suez Canal Authority decided to discontinue the maritime publication (5/2017) and to return to the implementation of its navigation regulations prior to 2015, which is based on the collection of transit fees based on the total tonnage of ships on the first transit of the channel and not the net load until delivery certificate. A maritime publication published on Tuesday on the Suez Canal Authority's website confirmed that the canceled maritime publication is based on the measurement of ships whose tonnage reaches 40k tons of total tonnage and did not submit the Suez Canal loading certificate or provide a load certificate without details at the first crossing of the Suez Canal. Transit charges are based on net tonnage and not total tonnage for USD4000. The total tonnage measurement for ships that did not submit the load certificate is scheduled to be implemented by early April. (Arab Finance) Manufacturing Index Down during January 2018 The index of manufacturing and quarrying industries (excluding crude oil and petroleum products) declined to during January 2018 compared with in December 2017 (5.9%) due to the decrease in supply contracts for the electrical appliances industry and the production of the beverage industry. The index for the food industry reached in January 2018 compared to December 2017, reaching , an increase of 7.2%, due to the increase in crushed flour, higher product prices and higher sugar production (seasonal). The index of chemicals and chemical products reached during the month of January 2018 compared to December 2017 reaching , an increase of 9.1% due to increased production of industrial detergents and increased production of urea fertilizer and liquid fertilizer and the absence of breakdowns in production lines. The index for the nonferrous metal products (bricks - glass - cement) was in January 2018 compared to December 2017, reaching , a decrease of 32.5% due to surplus stock of some important companies. The index of the electrical appliances industry was during the month of January 2018 compared to December 2017 reaching , a decrease of 28.1% due to the decline in supply contracts. The index for the beverage industry reached during the month of January 2018 compared to December 2017 reaching , a decrease of 42.1% due to the decrease in production backed by the stop of the production lines of a company for maintenance and low demand for soft drinks in winter. (Arab Finance)

3 FRA Approves New Listing Regulations that Raise Free Float Requirement The Financial Regulatory Authority (FRA) signed off yesterday on amendments to EGX listing regulations that raise the minimum requirement for the number of shares that need to be in free float, according to a FRA statement. Under the amended regulations, companies looking to IPO will have to choose between two options: The first will be to list at least 25% of their shares, up from 10% currently; and the second would entail listing a number of shares equivalent to 0.025% of the total free float capital of the EGX, provided that number is equal to at least 10% of the company s total shares. Already-listed companies need to comply and will have two choices: either increase their percentage of free float to at least 10% of total company shares, or the equivalent of 0.125% of total EGX free float capital (if that figure makes up at least 5% of total company shares). Companies will have until the end of 2019 to comply with the new regulations. (Enterprise) EFG Hermes Has Received Regulatory Approval to Offer Factoring Services in the Egyptian Market this Year EFG Hermes (HRHO.CA) announced in a statement that it has received Regulatory Approval to offer Factoring services in the Egyptian Market this year; adding that its new business unit, EFG Hermes Factoring, now has a license to begin offering tailor-fit factoring packages that cater to the needs of large-cap corporations as well as to those of SMEs. Key offerings will include facilities covering both domestic and international transactions for import and export operations, supply chain financing and discounting products. (Enterprise) The Stock Exchange Examined the Documents of Increasing the Capital of the Electro Cable Company for EGP711mn The Egyptian Stock Exchange has announced that the Egyptian Electro Cables Company (ELEC.CA) has submitted documents for a separate subscription to the original share of 164,180,166 shares. The company's share capital increased from EGP mn to EGP mn by issuing 164,180,166 shares. Adding that the documents submitted by the company are being examined and completed for presentation to the registration committee. (Arab Finance)

4 General Authority for Investment Refuses to Approve Golden Coast General Assembly Decision to Increase Capital Golden Coast El Sokhna For Touristic Investment Co. (GOCO.CA) disclosed its rejection of the Extraordinary General Assembly held on Monday 05/02/2018. The company said in a statement to the Egyptian Stock Exchange that the general assembly agreed to increase the issued capital from EGP40mn to EGP80mn, an increase of EGP40mn distributed over 10mn shares with a par value of EGP4, by inviting the shareholders to subscribe to the shares, as well as the amendment of articles VI and VII of the Statute. Golden Coast explained that the General Authority for Investment refused to approve the general assembly decision due to a mistake in the procedures; which was not issuing a second notice for the second meeting and only one notice was issued. The company pointed out that it is going to receive the notification of rejection, and the accreditation is being changed from the General Authority for Investment from 27/01/2018 to 05/02/2018. (Arab Finance)

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