NEWS

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THE NATIONAL BANK OF EGYPT (NBE) AND BANQUE MISR HAVE LOWERED THE INTEREST RATE

January 12th, 2020 The National Bank of Egypt (NBE) and Banque Misr have lowered the interest rate on their new 3-year CDs by 1.00% to c12% effective last Thursday, according to banking sources. (Al Borsa) HC’s comment: Despite that the 2 banks have cut interest rates on their fixed-rate 3-year CDs by a total 300...

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HC EXPECTS EXPECT THE CBE TO CUT RATES IN ITS UPCOMING MEETING

January 12th, 2020 – HC Securities & Investment expects the CBE to cut rates by 100 bps in its upcoming meeting, as they expect inflation to average 5.7% over the coming 6 months, well below the CBE target of 9% (± 3%) for 4Q20, providing room for the CBE to proceed with monetary easing to...

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HC EXPECTS EXPECT THE CBE TO CUT RATES BY 50 BPS IN ITS UPCOMING MEETING

December 21st, 2019 – Given the global context of monetary easing, HC expect the CBE to cut rates by 50 bps in its upcoming meeting. Monette Doss, Economist and banking analyst at HC commented that the monthly headline inflation declined in November driven by prices of food and beverage which has been decreasing by 1.51%,...

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HC EXPECTS EXPECT THE CBE TO CUT RATES BY 50 BPS IN ITS UPCOMING MEETING

November 7th, 2019 – HC Securities & Investment assured that headline inflation continued to decelerate for the fourth consecutive month from its high level in May, at 14.1%, with September monthly inflation coming in lower than our expected 0.7% m-o-m. Economist and banking analyst at HC, Monette Doss said: we see inflationary pressures largely subsiding...

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DEMAND COMEBACK ON MODERATING INFLATION

September 29th, 2019 – Demand growth back on track on more positive economic outlook, with margins reverting back to historical averages We raise our 12M TP c26% to EGP21.6/share for Edita, but cut c16% to EGP12.6/share for Juhayna and c9% to EGP11.5/share for Domty; maintain our OW for all the 3 stocks Companies’ valuations remain...

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HC EXPECTS EXPECT THE CBE TO CUT RATES BY 100 BPS IN ITS UPCOMING MEETING

September 23rd, 2019 – HC Securities & Investment assured that headline inflation continued to decelerate for the third consecutive month from its high level in May at 14.1%, with August monthly inflation coming in lower than our expected 1% m-o-m. Economist and banking analyst at HC, Monette Doss said, “We see inflationary pressures largely subsiding...

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BANKING ON A PRIVATE-SECTOR PICKUP

August 19th, 2019 – Monetary easing key for resumption of CAPEX lending, in HC’s view This should reflect in lower banking NIMs while strong CAR supports balance sheet growth, on HC’s  numbers HC raises their 12M TP c8% for CIB to EGP87.8/share and maintain OW, leave CAE largely unchanged at EGP51.9/share but downgrade to N,...

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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...