Egypt to list more state companies on stock exchange

The Egyptian authorities is promoting two state firms.

Yesterday the Egyptian cupboard authorised the itemizing of the Nationwide Firm for Petroleum and the Nationwide Firm for Pure Water in Siwa on the Egyptian inventory trade, the state-owned information outlet Al-Ahram reported. 

The Nationwide Firm for Petroleum runs gasoline stations in Egypt. The Nationwide Firm for Pure Water in Siwa produces each water and olive oil, in response to the Nationwide Service Merchandise Group. The group is a part of the Egyptian Ministry of Protection. 

Why it issues: The Egyptian authorities introduced its intention to checklist state and military-owned firms on The Egyptian inventory trade earlier this 12 months. The federal government was motivated by the poor state of the Egyptian financial system, together with Egypt’s funds deficit and excessive debt to gross home product ratio. Gulf states are notably inquisitive about buying them. 

Egypt’s financial system has been notably impacted by Russian invasion of Ukraine, and meals costs are rising considerably within the North African nation. Earlier than the warfare, Egypt imported most of its wheat from Ukraine and Russia. Egypt can be experiencing excessive inflation. 

The Abu Dhabi-based AD Ports Group acquired stakes in two Egyptian transport firms earlier this month.

Know extra: Egypt’s inventory trade has been performing poorly. The EGX 30 index, which incorporates essentially the most liquid firms on the Egyptian Change, was above 11,700 factors in April. In early July, it fell to round 8,500 factors. The index has since rebounded to about 9,300 factors and rose 1% in the present day, in response to market information. 

What’s subsequent: The Egyptian authorities beforehand mentioned it will promote a few of its firms by the tip of this 12 months and extra over the subsequent 4 years. The cupboard has not launched particulars on the Nationwide Firm for Petroleum and the Nationwide Firm for Pure Water in Siwa’s upcoming listings on the inventory trade.