Pre-Trading Thoughts

Saudi Arabia’s sovereign wealth fund is in advanced talks to acquire Egypt’s state-owned United Bank in a deal that could be worth about USD600 million (EGP14.76 billion). The transaction implies higher-than-sector-average multiples. In light of the mounting pressures, we expect the CBE to considerably hike interest rates by 200bps, maybe sooner than its meeting planned on 22nd December, with a likely EGP adjustment that might reach c.15%. Prime Minister has called for oversight bodie...