Al Ahly Pharos

Market Overview COMI CIEB EKHOA ETRS ATLC

IMF’s Managing Director Kristalina Georgieva kicked off talks with Egyptian officials, including Prime Minister Moustafa Madbouly and CBE governor Hassan Abdalla yesterday after landing in Egypt.  The USD rose more than 0.4% against the EGP on Thursday to reach EGP48.94 to the greenback, marking its highest level since August. Budget deficit narrowed to 2.12% of the country’s GDP in 1Q 2024-2025,...

Market Overview  HRHO CCAP ORHD FWRY ALCN prepared by: Mayada Amin- CETA, CFTe

The IMF’s Managing Director Kristalina Georgieva will be in Egypt next week to discuss our USD 8 bn loan program, Prime Minister Moustafa Madbouly said. A delegation from the Fund will arrive directly following her visit in preparation for the program’s fourth review, Madbouly added.  The government will be taking another look at its plan to sell off stakes in state-owned companies and assets, Mad...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Prime Minister delivered a speech during the opening session of the Future Investment Initiative (FII) conference in Riyadh. The speech was about Egypt’s approach to securing sustainable and inclusive development, with a particular focus on empowering the private sector and further developing our energy sector, transport and infrastructure networks, and telecom and CIT industry. The Ministry of In...

Market Overview  ESRS EAST CLHO prepared by: Mayada Amin - CETA, CFTe

Finance Minister Ahmed Kouchouk said that while in Washington for the IMF and World Bank’s annual meetings he had expressed the government’s expectation that it would have “positive and constructive discussions” with the Fund during the fourth review of our loan program. The review, which if successfully passed will unlock USD 1.3 bn in funds, had been previously expected to commence after the IMF...

Market Overview  COMI TMGH ESRS CIEB prepared by : Mayada Amin - CETA, CFTe

Egypt is preparing three possible revisions to the loan agreement to present to the IMF delegation when they land in Egypt mid-next week. The first scenario proposes extending the loan program by two years so Egypt ends up having five years to implement the reforms and unlock the entire USD8 billion in funding. The second scenario would give the government a year to carry out a stimulus package th...

Market Overview  ALCN BINV EXPA EKHOA  prepared by: Mayada Amin - CETA. CFTe

In contrast to the IMF’s talk of being open to changing some of the terms of the loan agreement, Georgieva reiterated that “Egypt is better served by undertaking reforms sooner rather than later.”  IMF Director Kristalina Georgieva stated that the Fund’s amendment to the basic and additional fees for programs and loans will save Egypt USD800 million up to 2030. Investment Minister Hassan El Khaitb...

Market Overview  BINV TMGH CCAP ORWE prepared by: Mayada Amin- CETA, CFTe

The Prime Minister confirmed that the government is currently reviewing the timeline and reforms put forward by the Fund, pointing to the direct impact that the war on Gaza and the subsequent decline in Suez Canal revenues has had on state revenues as justification for the review. The Prime Minister said that the foreign exchange flows and the state’s needs and obligations are proceeding regularly...

Market Overview  TMGH MFPC BINV Prepared by: Mayada Amin - CETA, CFTe

The IMF has kept our growth forecast for the current fiscal year unchanged at 4.1% in its updated World Economic Outlook. President Sisi met his Russian counterpart Vladimir Putin on the sidelines of the Brics Summit, which kicked off in Kazan yesterday. The conversation centered around Egypt’s role in the bloc, bilateral relationship, and regional and international issues. El Sisi made a case for...

Market overview BINV CIEB EPCO MFPC EMFD Prepared by: Mayada Amin- CETA, CFTe

Pitch: Egypt Banking Sector| Rerating Is a Must The Egyptian banking sector is poised for remarkable performance as we approach the release of third-quarter results for 2024. The combination of anticipated extraordinary results amid high interest rates and the compelling valuation metrics makes the Egyptian banking sector a prime candidate for investment.   Our top picks for the sector are: ADIB (...

Market Overview  SWDY TMGH GBCO JUFO BINV Prepared by: Mayada Amin- CETA, CFTe

  President Abdel Fattah El Sisi pointed to the economic pressures the nation is enduring as the country undergoes reforms as part of its loan agreement with the IMF. “If this challenge forces me to place unbearable pressure on the public, we must review the situation with the IMF,” El Sisi said. Finance ministers, central bank governors, and other big names in the worlds of finance and policy are...

Market Overview  prepared by: Mayada Amin - CETA, CFTe

In line with our expectation, the MPC decided to keep the CBE’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged. The Ministry of Petroleum and Mineral Resources announced on Friday the third fuel price increase in 2024. However, prices of Mazut supplied to power plants and food industries have been kept unchanged.  The Prime Minister stated that fuel pr...

Market Overview  ORWE EKHO ADIB CSAG prepared by: Mayada Amin - CETA, CFTe

We published today our earnings expectations sheet for companies under coverage in 3Q24/FY24/FY25: 1) In 3Q24, aggregated net profit is expected to increase 49% YoY and decrease 14% QoQ, 2) Aggregated net profit is expected to increase 53% YoY in FY24 and 15% YoY in FY25, 3) Stocks that are expected to witness a shift from net loss to net profit YoY in 3Q24: HELI, ESRS, MCQE, 4) Stocks that are ex...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe