Al Ahly Pharos

- Market Overview  - HRHO - MASR - RMDA - MFPC - TAQA - Prepared by: Mayada Amin- CETA, CFTe

We published this morning our earnings expectations sheet for companies under coverage in 1Q25/FY25, with the following key conclusions: In FY25, aggregated net profit is expected to increase 10% YoY Stocks that are expected to witness a shift from net loss to net profit YoY in 1Q25: ORHD and EGCH Stocks that are expected to witness a spike (>80%) in net profit growth YoY in 1Q25: MBSC, CNFN, F...

- Market Overview  - COMI - ALCN - PHDC - EFIH - ORAS - ORHD - Prepared by: Mayada Amin- CETA, CFTe

The World Bank sees the Egyptian economy growing at a 3.8% y/y clip during the fiscal year 2024-2025, raising its outlook 0.3 percentage points from its 3.5% forecast in October. The Finance Ministry is considering exempting imported auto parts used in manufacturing from the 3% state development fee, to instead collect the fees upon commercial sales and during license renewals, following a proposa...

- Market Overview  - COMI - HRHO - FWRY  - EFIH - AMOC - PHDC - prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today*  The IMF raised Egypt’s economic growth to 3.8% YoY this fiscal year, up 0.2pps from its January forecast. Its projection for the coming fiscal year was also up, likewise coming in 0.2pps higher from its previous projection to 4.3% YoY. The IMF also sees inflation continuing to dip this fiscal year to a monthly average of 19.7% YoY.   The IMF forecasts global growth t...

- Market Overview  - BTFH - EMFD - EHDR - FWRY - ELSH - Prepared by: Mayada Amin- CETA, CFTe

The Monetary Policy Committee decided on Thursday to cut policy rates by 225 basis points to 25% and 26% for overnight deposit and overnight lending rates respectively.  The government is planning to replace many of the various fees charged by different entities with a single unified additional tax on net income, which aims to streamline the tax system and reduce the administrative burden on busin...

- Market Overview  - TMGH - ORHD - MENA - ELSH - ELKA - Prepared by: Mayada Amin- CETA, CFTe

The MPC is scheduled to meet later today to decide on interest rates. We believe the CBE has the room to ease by up to 200 bps in its meeting today. The Finance Ministry has more than doubled its target for international debt issuances in the draft budget for the next fiscal year, coming in at a total of EGP400 billion (USD8 billion), up from EGP150 billion (USD3 billion) in the current fiscal yea...

- Market Overview  - prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today*  The House has passed the new Labor Act. The new act needs to be published in the Official Gazette and we’ll need to see the executive regulations to it. The country’s specialized labor courts (a key feature of the law) are expected to start operating on 1 October 2025 when the new judicial year kicks off.   Finance Minister Ahmed Kouchouk delivered his budget stateme...

- Market Overview  - PHDC - TMGH - EFIH - EKHOA - FWRY  -.prepared by: Mayada Amin- CETA, CFTe

El Sisi wrapped his Qatar trip with a big investment agreement, which saw the Gulf state further cement warming relations by agreeing to work towards a USD7.5 bn package of direct Qatari investments in Egypt in the near future, according to a joint statement from the two nations. The Industry Ministry launched the first phase of a new EGP 30 bn financing initiative offering reduced 15% interest ra...

- Market Overview  - EFIH - ETEL - COMI - CIEB - HRHO - prepared by : Mayada Amin- CETA, CFTe

Saudi players have been signaling interest in possibly expanding their investment footprint in Egypt. Saudi companies could raise their investments in Egypt by as much as USD15 billion over the next four years to USD50 billion. Batterjee Holding has earmarked USD200 million to invest in Egyptian real estate and industry. Batterjee mentioned the pharma, food, building materials, and plastics indust...

- Market Overview  - prepared by: Mohamed Othman - CETA, CFTe

Monthly urban headline CPI inflation recorded 1.6% in March 2025 compared to 1.4% in February. On an annual basis, urban inflation recorded 13.6% compared to 12.8% in February.  Egypt’s Fuel Automatic Pricing Committee raised on Friday prices of gasoline and diesel by EGP2, but kept diesel fuel supplied to electricity, food industries, and vehicle gas unchanged. Fitch Ratings affirmed Egypt's...

- Market Overview  - COMI - CIEB - OIH - MFPC - prepared by: Mayada Amin - CETA, CFTe

  Trump dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow trade negotiations with those countries, while raising the tariffs imposed on imports from China to 125% “effective immediately”. The EGP dipped against the USD during trading yesterday, setting a new post-float low as the greenback changed hands for EGP 51.72-51.75. The Sovereign Fund of Egypt (S...

- Market Overview  - Prepared by: Mohamed Othman - CETA, CFTe

*Key news articles for today* The EGP rallied against the greenback yesterday, snapping a four-day slide as one USD changed hands for around 51.33 at both public and private banks, as a handful of foreign portfolio investors cautiously bought back into Egyptian debt.  Tariff relief could be on its way, with the US considering easing its recently imposed 10% tariff on exports from Egypt’s Qualifyin...

- Market Overview  - COMI - CIEB - EAST - MASR - SKPC - KRDI - prepared by: Mayada Amin- CETA, CFTe

Egypt will continue to rely on a flexible exchange rate regime as a first line of defense against global shocks, central bank Deputy Governor Ramy Aboul Naga said.  Aboul Naga signaled that the central bank will cut interest rates when it’s convinced inflation won’t pick up again. The EGP continued to weaken against the USD in trading yesterday, slipping to fresh lows and ending the day at a selli...