Al Ahly Pharos

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today* The OECD sees that phasing out the country’s broad-based energy subsidies to, eventually, reflect global energy prices is a must, adding that fully phasing out subsidies both for electricity and natural gas would help address inefficiencies in electricity use in manufacturing, transport, and logistics, which account for nearly 40% of domestic power demand.   Sources a...

Market Overview 

Annual urban inflation skyrocketed to record 35.7% YoY in February, up from 29.8% YoY in January. Monthly urban inflation surged to 11.4% MoM, the highest on our records. Annual core inflation — which excludes volatile items such as food and fuel — rose to 35.1% in February, up from 29% in January. Meanwhile, monthly core inflation surged to 6.1% from 2.2% in January. The World Bank is expected to...

Market Overview  COMI BTFH ABUK HRHO FWRY  EKHO PHAR prepared by: Mayada Amin - CETA, CFTe

Moody’s Ratings has upgraded Egypt’s credit outlook from negative to positive following the country’s successful acquisition of fresh foreign funds. The Ministry of Finance intends to raise its expectations for interest rates on Treasuries to reach 28.5% in the budget for FY2024-25. The CBE raised EGP87.8 bn in a one-year t-bill auction on Thursday — receiving offers for almost 3x the amount sold....

Market Overview  COMI ADIB HRHO SWDY FWRY  EFIH ORAS Prepared by: Mayada Amin- CETA, CFTe

The CBE decided on Wednesday morning to allow market forces to determine the value of the EGP, while simultaneously raising interest rates by 6%. That is, the overnight deposit rate, the overnight lending rate, and the rate of the main operation were raised by 600bps to 27.25%, 28.25%, and 27.75%, respectively. The EGP formal rate traded at c.49.5 per USD after breaching the EGP50 border. NBE and...

Market Overview 

*Key news articles for today* CAPMAS is expected to release February inflation data on Sunday, 10th March. We expect annual urban inflation to drop appreciably to c.24% YoY, capitalizing on a particularly accommodative base effect.   A staff delegation from the IMF is reportedly in town. Sources said that a staff-level agreement with Egyptian officials will be signed as early as today.   Net Forei...

Market Overview 

President El-Sisi directed the government to expedite the immediate release of goods at the ports, a statement by the Cabinet said. An unnamed Emirati company has submitted a bid for a 40% stake in state-owned Misr Life Ins., a government official reportedly said. The Suez Canal Authority (SCA) will fully fund the plan to expand the Suez Canal from its Finance Ministry-approved investment budget t...

Market Overview 

Budget deficit increased to 5.9% of GDP, recording EGP789.8 billion during 7M23/24, from 4.4% in 7M22/23. Suez Canal revenues declined by 50.7% during the first two months of 2024. The government has conducted preliminary studies on a project to duplicate the remainder of the Suez Canal to better support two-way traffic. Yields on EGP-denominated one-year bills hit a record high 30.061% during the...

COMI ORAS FWRY EFIH Prepared by: Mayada Amin- CETA, CFTe

Egypt received an additional USD5 billion as the final part of the first tranche of the USD35 billion Ras El-Hekma deal with the United Arab Emirates on Friday, the Egyptian Cabinet said. Egypt repaid USD-denominated Eurobonds worth USD750 million, which it offered on February 26, 2019, with a coupon of 6.2%. The government received USD520 mn as part of the USD800 mn sale of the seven historic hot...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

The ADQ on Tuesday deposited the first tranche of its USD35 bn Ras El Hekma investment at the CBE,  El Sisi said. Egypt has inked seven MoUs with international and local companies to develop green hydrogen and renewable energy projects worth USD41 bn in the Suez Canal Economic Zone over the next ten years. The Madbouly government is looking into a proposal from Italian industrial manufacturer Dani...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Prime Minister held a meeting to look at offers submitted for Wataneya state-owned fuel retailer. Taqa Arabia is the only firm to have publicly declared interest, and Shell has reportedly also made a bid. The IMF has resolved key issues with Egypt in a review of its previous USD3 bn loan program from the Fund, setting the stage for an augmented financing package “within weeks”. Egypt's 5-year...

Market Overview 

The government will soon launch an international tender for the management and operation of all the airports in the country, Civil Aviation Minister said. The House gave final approval to an amendment to the 2018 Consumer Protection Law that will see those hoarding key food commodities facing sentences of one year in prison and fines between EGP150k-3 million.  "There are no negotiations rega...

Market Overview  FWRY  GBCO EFIH ETEL prepared by: Mayada Amin - CETA, CFTe

The USD35 billion Emirati investment in Egypt is an important step, but it is not linked to the Fund’s discussions with Egypt. These two topics are completely separate, the IMF’s Middle East and Central Asia head said. Egypt needs to ramp up private sector activity, rationalize spending, and maintain restrictive monetary policy to help boost economic growth, the Organization for Economic Co-operat...

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