NEWS

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HC RECEIVES LICENSE TO ENGAGE IN SHORT SELLING ACTIVITIES

July 14th, 2019 – HC Brokerage was among the first local brokerage firms has received a license from Egypt’s Financial Regulatory Authority under decision no. (268) of 2019. Short selling allows investors to sell equities before they are acquired, and the investment mechanism should lead to increased market liquidity. The FRA issued earlier this year...

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HC SECURITIES & INVESTMENT EXPECTS CBE MPC TO KEEP INTEREST RATES UNCHANGED

July 5th, 2019 – HC Securities & Investment expects the Central bank of Egypt (CBE) to keep interest rates unchanged at its next 11 July 2019 Monetary Policy Committee (MPC) meeting. According to Sara Saada, head of macro and financials at HC Research, yearly inflation figures will be largely influenced by favorable base effect in...

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EASING CYCLE KEY TO PRICE IN RECOVERY

June 23rd, 2019 – Continuation of the easing cycle by 4Q19e, following the completion of fiscal consolidation measures, should stimulate private investment and GDP growth – External position to further improve on a rebound in FDIs, with portfolio inflows currently leading to EGP appreciation – Capital market reforms along with the resumption of the partial...

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EGYPT’S ANNUAL HEADLINE INFLATION DECELERATED TO 14.2% IN MARCH

April 10th, 2019 – Egypt’s annual headline inflation decelerated to 14.2% in March from 14.4% in the previous month, according to data posted by the Central Agency for Public Mobilization and Statistics (CAPMAS). Monthly prices rose 0.8% compared with a rise of 1.7% in February, with food and beverage prices rising 1.5% m-o-m compared with...

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EGYPT REPORTED A BALANCE OF PAYMENTS (BOP) DEFICIT OF USD2.06BN IN 2Q18/19

April 1st, 2019 – Egypt reported a balance of payments (BOP) deficit of USD2.06bn in 2Q18/19, down from a surplus USD0.51bn a year earlier and USD0.28bn in the previous quarter, data posted by the Central Bank of Egypt (CBE) showed. (CBE) HC’s comment: Egypt’s capital and financial account registered net inflows of USD0.23bn, down from...

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HC SHEDS LIGHT ON COMPELLING STORIES IN 2019

February 10th, 2019 – “We expect a 1-year delay in the easing cycle and remain bullish on prospects of the Egyptian economy” – We are bullish on construction, energy-related, consumer staples, financials, tourism, automotive, and select real-estate names – With a big portion of our coverage undervalued, our focus is on compelling stories with low...

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EGYPT’S NET INTERNATIONAL RESERVES (NIR) DECLINED TO USD42.551BN IN DECEMBER

January 8th, 2019 – Egypt’s net international reserves (NIR) declined to USD42.551bn in December from USD44.513bn in the previous month, according to Central Bank of Egypt (CBE) data. The decline was mainly attributable to: (1) redemption of treasury bills held by foreign investors whose holdings of Egyptian T-bills dropped to USD10.8bn as of the end...

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THE CBE HAS DECIDED TO TERMINATE THE REPATRIATION MECHANISM AT THE END OF THE 4 DECEMBER

November 29th, 2018 –   The Central Bank of Egypt (CBE) has decided to terminate the repatriation mechanism at the end of the 4 December business day for any fresh foreign currency portfolio investments wishing to enter the local treasuries or stock markets, the CBE announced in a release. Going forward, fresh foreign portfolio investments...

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EGYPT’S CABINET APPROVED A NEW DRAFT LAW MODIFYING INCOME TAX ON TREASURIES

November 25th, 2018 – Egypt’s Cabinet approved a new draft law modifying income tax on treasuries, which separates income earned on treasuries from corporates’ and banks’ other income sources, according to Ministry of Finance sources. According to the draft law, income earned on government treasuries will be recorded net of a 20% tax and then...