Al Ahly Pharos

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Saudi Arabia is looking to turn its deposits with the CBE into investment. The recently-approved USD820 million tranche from the IMF has officially landed in state coffers, Prime Minister Moustafa Madbouly said on Thursday. The government is reportedly planning to import up to 17 shipments of LNG in 4Q24 to ensure the lights stay on after an extended period of power cuts. The government is plannin...

Market Overview  prepared by: Mayada Amin- CETA, CFTe

The Electricity Ministry plans to carry out USD 4 bn worth of hydroelectric power projects in partnership with the private sector unnamed government sources said.  Singapore’s Trafigura and Switzerland’s Vitol and Glencore have won a tender to provide Egypt with five shipments of LNG through August and September. The government secured the shipments at “favorable prices,” which can be paid back un...

Market Overview  COMI EKHOA EFIH ALCN AMOC MFPC GBCO Prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today* EMFD , BINV , CIEB , CLHO , and FAIT have been added to the EGX30 following the bourse’s semiannual review, according to a statement. CCAP , ISPH , ORHD , SUGR , and PHAR were removed from the index to join the broader EGX70 index, effective 1 August. Meanwhile, RMDA and EFIC both joined the bourse’s new shariah-compliant index — the EGX33, replacing FWRY and MFPC.  T...

Market Overview  ACAMD DOMT MEPA PRCL EGCH CIEB  AMOC Prepared by: Mayada Amin- CETA, CFTe

The IMF Executive Board has completed the third review of our USD 8 bn loan program, enabling the government to immediately draw the USD 820 mn third tranche. Foreign investments in Egypt’s debt currently stands at USD 32-33 bn after the exit of USD 4 bn in June. Egypt is not expected to tap the international debt market this year, adding that the state is focusing on the local market to meet its...

Market Overview  BTFH PHDC ASCM CLHO prepared by: Mayada Amin- CETA, CFTe

The IMF Executive Board is scheduled to discuss the third review of Egypt's USD8 billion loan program today. The greenlight from the board will see the Fund disburse a fresh USD820 million tranche into the state coffers and will allow Egypt to apply for an additional USD1.2 billion in climate financing. The G20 countries could greenlight a decision to provide debt relief to the countries that...

Market Overview  COMI BTFH EGCH Prepared by: Mayada Amin- CETA, CFTe

The government raised fuel prices 10-15% as of last Thursday. The price of mazut for most industries increased to EGP8.5k per ton, up 13.3% from EGP7.5k previously. The government has kept mazut prices stable for electricity generation and food industries. Foreign investments in Egypt’s t-bills stood at USD35.2 billion (EGP1.70 trillion) by the end of April, up from USD32.0 billion (EGP1.54 trilli...

Market Overview  CIEB MENA ACGC CLHO  Prepared by: Mayada Amin - CETA, CFTe

The Finance Ministry is updating its tax policy framework so that it is more attractive to potential investors. The policy will be ready in 1Q 2025. The government expects its tax revenues to jump by around EGP 100 bn once the new policy is put in place, as a result of incorporating the informal economy and encouraging further investment. An international consortium has submitted a proposal to man...

Market overview  ARCC CCAP BTFH HELI MFPC SKPC KABO Prepared By: Mayada Amin- CETA, CFTe

*Key news articles for today* Egypt’s external debt has decreased by 8.43% after hitting USD153.86 billion at the end of May 2024 compared to USD168.03 billion at the end of December 2023. This is mainly attributed to the waiver of UAE's deposits in the CBE, amounting to USD11 billion. Egypt's expected external debt obligations in May during the 12 months ending in May 2025 declined by a...

Market Overview  EKHOA CIEB Prepared by: Mayada Amin - CETA, CFTe

The IMF Executive Board has added the third review of Egypt's USD8 billion loan program — set for 29 July — back to its calendar. Egypt paid USD3 billion to the IMF in 1H2024 and intends to pay another USD257 million until the end of July. It is possible there were some malfunctions or increased pressure on the electricity grid due to the continued heatwave, which may have led to power cuts,...

Market Overview  BTFH CICH HELI ABUK MFPC ACAMD prepared by: Mayada Amin- CETA, CFTe

The CBE's Monetary Policy Committee decided to maintain the overnight deposit rate, overnight lending rate, and the rate of the main operation steady at 27.25%, 28.25%, and 27.75%, respectively. The MPC attributed the decision to the decline of the inflationary pressures. The Suez Canal Economic Zone (SCZone) saw its revenues grow 36% y-o-y to hit a record EGP8.3 billion during the fiscal yea...

Market Overview  ORWE ORAS EAST FWRY  KABO  ORHD Prepared by: Mayada Amin - CETA, CFTe

We published yesterday our earnings expectations sheet for companies under coverage in 2Q24/FY24: 1) In 2Q24, aggregated net profit is expected to increase 61% YoY and decrease 19% QoQ, 2) In FY24, aggregated net profit is expected to increase 38% YoY, 3) Stocks that are expected to witness a shift from net loss to net profit YoY in 2Q24: OIH, AMOC, CCAP, EGAL, MCQE, 4) Stocks that are expected to...

Market Overview  GBCO AMER ARVA TMGH PHAR AMOC CSAG OLFI FWRY  prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today* The MPC will meet tomorrow to decide on key interested rates.  In general, we believe the inflation outlook underscores a disinflation view that supports easing to kick off by 2024-end, or – more conservatively – by 1Q2025. We believe the CBE might prefer to keep rates unchanged in its upcoming meeting tomorrow.  The IMF has revised down its projection for Egypt’s rea...

Market Overview  ALCN AMER ISMQ OFH ORWE FWRY  prepared by: Mayada Amin- CETA, CFTe