A Pakistani shipping line launches a new service to connect the port of Sokhna and “Jebel Ali” port to serve Egyptian exports
For our top talks today, first, a Pakistani shipping line launches a new service to connect the port of Sokhna and “Jebel Ali” port to serve Egyptian exports, the service is scheduled to start on September 22nd. Operating a freight train from Sokhna to the sea port. The Pakistani company includes four shipping lines based in Pakistan and Dubai, which enjoy owning empty containers in light of the global crisis of shortage of containers, which encouraged the necessity of contracting with them, relying on competitive prices for shipping in Sokhna. It is worthy to mention that operating the freight train from Sokhna to the seaports, where Alexandria, Damietta, Port Said or the dry ports save about 40% of transportation costs compared to transporting them by trucks.
- Second, the Institute of International Finance (IIF) announced in a recent report published this month that the ratio of the total public debt and the debt of the non-financial sector in Egypt amounted to about 13% of its GDP
since the end of the year before the epidemic until the end of the first half of this year, outperforming many emerging market countries. Including Saudi Arabia, where this percentage is approximately 30%, and the UAE 20%. Egypt was able to issue more than 38 billion USD in international bonds during the epidemic year and until the first quarter of this year, to become the largest country in the African continent to issue international bonds, while many low-income developing countries still face challenges in entering global bond markets and need transparency.
- Moving to our M&As and companies talks, ContactCars.com, the leading digital platform in the automotive world in Egypt, announced the acquisition of Sa’ir Technology Solutions, a platform that provides vehicle pricing technology, in addition to dealer auction.
We believe that with the steady increase in the use of digital services by both users and companies, and with the increasing digital transformation in the automotive market, this acquisition comes to enhance the leadership of Connecticut Cars.com, and is a basis for adding new services in the future. It is also the first step for a series of investments that will be announced successively.
- In addition, Beltone Holding agrees to increase its capital by 35.6 million EGP. The increase will be distributed to 17.8 million shares with a nominal value of 2 EGP per share, raising the issued capital to 927 million EGP.
The company's current capital is 891.3 million EGP, distributed over 445.6 million shares, with a nominal value of two pounds per share. Orascom Financial Holding is the main shareholder in the company with 59.2% of the share. It is worthy to mention that since last December, the company has embarked on the sale of its stake in “Arbach Grayson”, which specializes in financial brokerage services, with a total value of 45 million EGP, in addition to a percentage of the profit. The value of the deal is 2.8 million USD (equivalent to 45 million EGP), in addition to 50% of the net profit over a period of thirty month.
- Besides, the Nasr Petroleum Manufacturing Company achieved 100% of its target plan during the last fiscal year.
The company was able, despite the challenges it faced in light of the Corona pandemic, to double the volume of investments that were injected throughout the year, as its total investments increased during 2020/2021, with a value of 1.1 billion EGP, compared to 2019/2020, with an increase of % 100. Noting that the total investments for the ending fiscal year amounted to 2.2 billion EGP.
- Moreover, Anthony Smith, Chairman of the Board of Directors of the Japanese International Tobacco Company “Japan Tobacco International,”
had submitted two proposals to the Egyptian government on amending the new licensing mechanisms for the manufacture of cigarettes. The first involves separating e-cigarettes and the second making them diversified. The negotiations with government agencies regarding the license are still continuing, even after the closing of the door for receiving offers, demanding an extension of the period for receiving them until the end of the year.
- Likewise, the board of directors of the Gas Market Activities Regulatory Authority agreed to grant licenses to the “Natural Gas Supply and Compression Facility Operator” for a period of 10 years,
for the benefit of 4 companies operating in the local market which are: “Gastec", "Cargas", "Master Gas" and "Crystal Egyp”. We believe the current period is witnessing remarkable activity by companies operating in the supply, distribution and transmission of gas, especially with the government's targeted expansions by spreading its use in all areas far from the national grid.
- Equally important, the National Bank of Egypt succeeded in obtaining a license to accept payment for electronic points of sale through a mobile phone “Tap on phone”,
which aims to provide new and advanced digital payment solutions, as the first bank in Egypt to obtain that license. This comes as a new step in implementing the bank's growing strategy in digital transformation and supporting financial inclusion, in line with the initiatives of the Central Bank of Egypt in this regard.
- And for our EGX talks, first, Beltone raised the fair value of IDH Holdings' share from 1.40 USD to 1.60 USD a share on the London Stock Exchange.
The valuation is between 22 and 24.60 EGP per share on the EGX after the company's double listing last May, noting that the stock is currently trading on screens near 18 EGP. Beltone said that the fair value provides a potential increase of 26% and 37%, respectively, and allows for a buy recommendation. Beltone expects IDH’s share to maintain good growth and increase the company’s revenues by 76% on an annual basis, recording 4.68 billion pounds in 2021, supported by the revenues of Covid-19 tests, with expectations that it will constitute 48% of revenues in 2021. Taking into account the recent deal for the company's Biolab laboratory in Jordan with Queen Alia International Airport to conduct corona tests on arrivals and traveler.
- Talking about the capital gains tax has increased in the stock market during the current days, which some link with the noticeable selling pressures on stocks,
which pushed the market yesterday to decline by 1.6%. At the same time, some saw that the market's decline came as a result of speculators' pressure on a group of stocks, which created a state of confusion. We believe that the coincidence of the return of talk about the capital gains tax and its impact on the psychology of dealers, with the application of new trading mechanisms, which the market is still trying to adapt to, put pressure on the market strongly, which led to waves of profit-taking, and brokerages resorting to margin calls to avoid losing its loans to investors.
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