Egypt Independent: Business-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Egypt's market gains LE3.7 billion on Tuesday, EGX30 rises 1.2% http://www.egyptindependent.com//node/2455334 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/02/20/499612/cairo_stock.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>Egypt&#39;s market closed in the green zone on Tuesday&#39;s session, as the benchmark EGX30 index increased 1.17 percent, recording 8,181.95 points and a turnover of LE448 million, the Egyptian Exchange data showed.<o:p></o:p></p><p>Meanwhile, the small and mid-cap EGX70 index and the broader EGX100 index rose 2.2 percent and 1.22 percent, respectively. &nbsp;<o:p></o:p></p><p>Arab and foreign institutions were net sellers, recording net flows of LE80 million and LE41.5 million, respectively, while local institutions were net buyers, recording net flows of LE295.million.<o:p></o:p></p><p>The EGX market capital gained LE3.68 billion (US$478 million), hitting LE497.34 billion, compared to LE493.66 billion on Monday.&nbsp;<o:p></o:p></p> Tue, 04 Aug 2015 13:05:00 +0000 Egypt Independent 2455334 at http://www.egyptindependent.com sites/default/files/photo/2015/02/20/499612/cairo_stock.jpg Egyptian pound steady at official auction, exchange bureaus http://www.egyptindependent.com//node/2455331 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2015/01/19/499612/dollar.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>Egypt&#39;s central bank kept the Egyptian pound steady at 7.73 per dollar at a foreign exchange auction on Tuesday after a depreciation earlier last month. The pound was steady at currency exchange bureaus.</p><p>The central bank said it had offered $40 million and sold $37.8 million at a cut-off price of LE7.7301 per dollar , unchanged from Sunday&#39;s rate.</p><p>The central bank held the pound at 7.5301 for five months until last month, when it allowed it to weaken to 7.6301. On July 5, the bank let it slide a further 0.10 pounds.</p><p>Analysts say letting the pound weaken in a controlled way could boost exports and attract further investment, but also raises Egypt&#39;s large bill for imported fuel and food staples.</p><p>Egypt has sought to tame a once-thriving currency black market with measures such as a cap on dollar-denominated bank deposits.</p><p>Two traders at currency exchange bureaus said the pound was changing hands at 7.88 per dollar, unchanged from the 7.875/88 per dollar quoted on Sunday.</p><p>The central bank gave banks permission in January to trade dollars up to LE0.10 more or less than the official rate, with an extra LE0.05 for currency exchange bureaus.</p> Tue, 04 Aug 2015 12:35:00 +0000 Reuters 2455331 at http://www.egyptindependent.com sites/default/files/photo/2015/01/19/499612/dollar.jpg CEO: National Bank of Egypt postpones bond issue, to repay $600 mn http://www.egyptindependent.com//node/2455329 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/09/17/484151/195349_0.png" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>National Bank of Egypt will postpone a new bond issuance and repay $600 million of earlier bonds on Wednesday, its chief executive said.</p><p>&quot;After the fluctuation in international bond markets in the last period as a result of the Greek crisis... we have decided to temporarily postpone the new issuance until the right time,&quot;&nbsp;Chief Executive Officer&nbsp;(CEO) Hisham Okasha said.</p><p>Egypt&#39;s oldest commercial lender, National Bank in June selected five banks to arrange fixed-income meetings for a potential benchmark U.S. dollar-denominated bond issue.</p><p>But Okasha said in a phone interview that the prospective issuance would be delayed as the bank wanted to wait for more favourable debt market conditions.</p><p>It will repay $600 million in bonds on Wednesday, he added.</p><p>The bank issued bonds in August 2010 worth $600 million at an interest rate of 5.25 percent, which mature on Aug. 5.</p><p>&quot;Repayment confirms the bank&#39;s commitment to meet foreign obligations in a timely manner,&quot; Okasha said.</p><p>The government sold $1.5 billion of 10-year bonds in June, returning to the international debt market after a five-year hiatus due to political and economic instability.</p> Tue, 04 Aug 2015 12:31:00 +0000 Reuters 2455329 at http://www.egyptindependent.com sites/default/files/photo/2014/09/17/484151/195349_0.png Brent oil price falls to lowest level since January http://www.egyptindependent.com//node/2455314 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/12/17/499612/oil_prices.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>The price of Brent crude oil fell below $50 per barrel late on Monday, on&nbsp;weak Chinese economic data, slower global growth&nbsp;and growing concern&nbsp;that the U.S. Federal Reserve will&nbsp;raise interest rates.</p><p>The price of the global benchmark fell 5 percent on Monday, to as low as $49.59 per barrel after it peaked at $52.0,&nbsp;according to official figures.&nbsp;</p><p>It was the first drop below $50 per barrel for the global benchmark since&nbsp;January 13, when the price of Brent oil&nbsp;fell&nbsp;below $46 per barrel, losing&nbsp;about&nbsp;60 percent.&nbsp;</p><p>The Chinese HSBC Manufacturing Purchasing&nbsp;Managers Index, which tracks&nbsp;activity in the manufacturing sector, on&nbsp;Sunday dropped to a fifteen-month low of&nbsp;47.8 in July, down from 48.2 in the previous month.&nbsp;</p><p>A PMI reading below 50.0 indicates that the manufacturing sector&nbsp;is slowing down.&nbsp;</p><p>A weak economy in China could mean that demand for oil will also slacken in the near future.</p><p>&quot;There are a lot of concerns about the health of Chinese economy,&quot;&nbsp;Richard Mallinson, a geopolitical analyst at the London-based energy market consultancy Energy Aspects, told&nbsp;Anadolu Agency. &quot;Total Chinese crude oil demand has slowed down compared with&nbsp;previous years.&quot; But Mallinson noted that rising oil demand from consumers is partially offsetting weaker demand from industry in China.</p><p><strong>Slower global growth rates</strong></p><p>Forecasts indicate slower global&nbsp;growth this year,&nbsp;the weakest since the 2008 to 2009 finacial crisis, and that projection is also pushing down oil prices.&nbsp;</p><p>The International Monetary Fund predictsed&nbsp;global growth of&nbsp;3.3 percent in 2015, a revision from its 3.5 percent forecast in April, in its most recent World Economic Outlook.&nbsp;</p><p>&quot;The global economy&nbsp;is still in a period of slow growth,&quot; Mallinson said, but low oil prices will benefit&nbsp;developing countries and help to revive growth in 2016.&nbsp;</p><p>&quot;Falling energy and commodity prices give&nbsp;a major boost to importing and developing countries. This will feed into to global GDP growth in&nbsp;2016, when the&nbsp;global economy will gain momentum. But we may not return to such&nbsp;strong growth as we saw a decade ago,&quot; he explained.&nbsp;</p><p><strong>Stronger&nbsp;dollar</strong></p><p>The value of the&nbsp;dollar has increased against other major currencies like Euro and Yuan, on&nbsp;expectations that the&nbsp;Federal Reserve Bank&nbsp;will raise&nbsp;interest rates late this year. &nbsp;</p><p>Federal Reserve President Janet Yellen said in June that the Fed will raise interest rates before yearend.</p><p>Mallinson noted that &nbsp;the market has already&nbsp;begun to price in increased dollar strength.&nbsp;&nbsp;&nbsp;</p><p>A strong dollar reduces&nbsp;the purchasing power of oil importing countries, because&nbsp;oil prices are indexed to the value of the U.S. currency.</p><p>&quot;Oil imports will be more expensive in relative terms [with the rising&nbsp;dollar]. But&nbsp;prices are still half what they used to be a year ago,&quot; Mallinson said.&nbsp;</p><p>&quot;With prices back around $50 per barrel, there is still an economic boost for oil importers despite the exchange rate,&quot;&nbsp;he pointed out.</p><p>The expert&nbsp;stressed that oil demand will increase with low prices, and rising demand may push&nbsp;crude oil prices higher in the next two years.&nbsp;</p><p>&quot;We foresee price of Brent going back to $80 per barrel in&nbsp;second half&nbsp;of next year. For 2017, our&nbsp;forecast is that it will&nbsp;average just below $100 per barrel,&quot; he said.&nbsp;&nbsp;</p><p>However, Mallinson warned that&nbsp;volatility will continue&nbsp;because&nbsp;OPEC is not actively&nbsp;trying to influence&nbsp;the market.&nbsp;</p><p>The cartel refused to trim production in both of its biannual meetings, a move that would have put a brake on&nbsp;the decline in prices and which could have even triggered a price increase.&nbsp;</p><p>Despite deciding to maintain 30 million barrels per&nbsp;day (mbpd)&nbsp;of output quota twice, on Nov. 2014 and Jan. 2015, the oil cartel has increased its oil production to 30.9&nbsp;mbpd on April&nbsp;31, to1 million bpd in May, and to 31.4 million bpd in June.</p> Tue, 04 Aug 2015 10:41:00 +0000 Anadolu Agency 2455314 at http://www.egyptindependent.com sites/default/files/photo/2014/12/17/499612/oil_prices.jpg