Egypt's Sovereign Fund partners with Scatec, Fertiglobe to develop green hydrogen facility    IMF sees Egypt's government gross debt hitting 91.4% of GDP in 2021    Egypt to be listed on JP Morgan emerging bond index late January 2022    Egypt hosts regional conference of EU refugee agency EASO    SCOHRE sparks discussion on harm reduction, tobacco control    TikTok hits 1 billion monthly active users worldwide    Egypt to receive first of six high-trains from Spain's Talgo in mid-November    Healthy food brand Abu Auf plans Egypt IPO in Q2-2022    National Bank of Egypt wins licence to open Saudi Arabia branch    Egypt's iron and steel exports jump 197% in 8 months    Ethiopia halts work at its embassy in Egypt for 'economic reasons'    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Over 100 officials resign from Tunisia's main Islamist party    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egyptian court bans use of mosques for political purposes    Brazil calls up 8 EPL players for World Cup qualifying    Refugees in fear as sentiment turns against them in Turkey    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Sisi calls on House, Senate to commence second legislative sessions on 3, 5 October    Huawei Technologies has invested $10 mln over 5 years in innovation centres in Egypt    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    Qa'a play showing at Lycee El Horreya Theatre, Alexandria is a must go    Orange Egypt Introduces Amazon Prime Video    Tokyo Olympics: Cautious opening ceremony, shy start for Egyptians in competitions    Mallawi Museum in Upper Egypt holds recycling workshop for children during Eid Al-Adha    Egypt keen on stable tax policies to attract more investors: Finance Minister    Sudan declares state of emergency as water goes beyond Merowe Dam capacity    Niagara Falls illuminated in Egyptian flag to mark 23 July Revolution anniversary    Capital flows into EM keep recovering after March 2020 slump: Central Bank of Egypt    1 child orphaned every 12 seconds due to COVID-19-associated death: World Bank    Egypt, Japanese Olympic Committee discuss boosting sports cooperation    US emphasises AU's role in mediating Ethiopian damdispute    Ethiopia ready to resume dam talks with no legally binding agreements: Ethiopian official    Sunken city of Thônis-Heracleion in Egypt's Abu Qir bay yields new archaeological treasures    New films, concerts, and destinations for Eid Al-Adha holidays    Egypt, Oman discuss enhancing bilateral economic, investment relations    Al Ahly v Kaizer Chiefs: Cairo giants eye 10th CAF Champions League title    Tunisia hopes to have a UN role in resolving Egypt-Ethiopia dam dispute    APO Group enters new exclusive agreement with Getty Images on African press releases and images    On International Museum Day, Egypt opens two new museums at Cairo Airport    Old Cairo's Al-Fustat will be revamped on Egyptian President's directives    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

From the trading floor
Published in Ahram Online on 07 - 09 - 2021

Abu Qir Fertilisers: The leading state-owned fertiliser producer is upbeat about global nitrogen fertiliser prices. During a conference call earlier this week, the management of the company told analysts it expects prices to hover around $400 per ton at least in the short run before the hike in urea prices, the main factor that has pushed up prices for nitrogen fertilisers, loses steam.
Urea prices surged on the back of low exports from China, increases in the international prices of commodities like wheat and corn, and strong demand from importing countries. In the medium to long term, the company thinks a $300 per ton price is attainable, more profitable than pre-Covid-19 levels, according to a Prime Security note on the conference call.
Abu Qir said it will keep supplying the market with 77,000 tons of fertiliser monthly at a subsidised price, a stipulation of the government for all fertiliser producers in Egypt before they are given permission to export their products. There are negotiations between fertiliser producers and the government to change the pricing mechanism, with one option being to provide the subsidies in cash rather than a discount on the price.
"If it were not for the local quota, Abu Qir would have achieved net profits close to LE4.6 billion instead of LE3.5 billion," according to Prime.
It put the target price of the listed company at LE26 per share, or 35 per cent higher than its trading value. Key catalysts behind the high valuation are the possibility of the liberalisation of local urea prices or the company qualifying for free-zone status. Any cut in natural gas prices by the government could also be reflected in the price. A reduction of one dollar per Metric Million British Thermal Unit (MMBTU) would be translated into a 20 per cent increase in the target price.

Orascom Construction (OC): the company reported a 143 per cent increase in its net profits in the second quarter of 2021 compared to the same quarter of 2020. The improvement is fed by good performance indicators in the Middle East and Africa region as well as in the US.
OC also signed this week a deal to participate in building the 660km high-speed electrified main and freight rail line that will connect the port cities of Ain Sokhna on the Red Sea to Alexandria and Marsa Matrouh on the Mediterranean Sea. It is part of a consortium that also includes Siemens Mobility and Arab Contractors.
OC's role will include the track works, signalling, overhead catenary, telecommunication system, and traction power substations, while a 15-year maintenance agreement encompasses the track works and telecommunication system, according to a company press release.
There are currently discussions to finalise two other high-speed railway lines, increasing the total distance of this new rail network to 1,800km. The two additional lines will connect the Greater Cairo region from 6 October city along the River Nile with Aswan and Luxor via Hurghada to Safaga, noted the press release.

Arab Investment Bank (AIB): Seventy-six per cent of the state-owned bank is now being privatised, as both EFG Hermes and the Sovereign Fund of Egypt (SFE) have acquired the green light from the Central Bank of Egypt (CBE) to pursue the purchase deal.
The deal will take the form of a LE3.8 billion increase in AIB's capital. EFG's holdings in AIB will be 51 per cent and that of SFE will be 25 per cent following the deal. The remaining 24 per cent will remain held by the National Investment Bank (NIB), which used to own 91.4 per cent of AIB. Minority shareholders will also sell their 8.6 per cent share.
AIB is both a commercial and an investment bank, and it offers both traditional and Sharia-compliant services. It was established in 1974.

Integrated Diagnostics Holdings (IDH): The medical diagnostic services provider recorded an almost 400 per cent increase in its net income in the second quarter of 2021 compared to the same period of the previous year to reach LE326 million as the market continues to recover from the impact of Covid-19.
A company statement showed a six-fold increase in Covid test revenues to reach LE569 million. Conventional test revenues also recorded a 60 per cent increase.
IDH companies include the Al-Borg and Al-Mokhtabar labs in Egypt as well as subsidiaries in Jordan, Sudan, and Nigeria. The company was listed on the London Stock Exchange in 2015 and debuted its shares on the local stock exchange in May.

*A version of this article appears in print in the 9 September, 2021 edition of Al-Ahram Weekly.

Clic here to read the story from its source.