Al Ahly Pharos

*Key news articles for today* The General Authority for the Suez Canal Economic Zone (SCZone) is on course to take out a 15-year, EGP30 billion loan from a syndicate of local banks to finance the infrastructure for a number of green hydrogen projects. Part of the loan will be paid in USD to finance imported components. The Asian Infrastructure Investment Bank is considering financing the winning c...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The CBE's MPC will hold its meeting on Thursday, 21 September, to decide on interest rates. We expect the CBE might prefer to keep rates unchanged for the time being, as inflation rates are showing quiet signs of moderation, and to avoid adding burdens on the budget.   Deputy Chair of the House Planning and Budget Committee denied giving comments to the media, which reported yesterday that th...

Market Overview  CLHO DOMT EGAL ARAB ARVA ASCM BTFH prepared by: Mayada Amin- CETA, CFTe

President El-Sisi announced a series of measures on Saturday to alleviate financial strains on citizens, including: Raising the exceptional cost of living allowance to EGP600 for all employees. Raising the annual income tax exemption threshold by 25 percent from EGP 36,000 to EGP 45,000 for all state employees. Raising Takaful and Karama benefits by 15 percent and doubling the exceptional grant fo...

Market Overview  ASCM PHDC ORAS CLHO Prepared by: Mayada Amin - CETA, CFTe

Foreign nationals already in Egypt applying for residence permits will be required to pay their required fees in hard currency starting Saturday, 16 September. Three unnamed firms hailing from the Arab world and China are looking to invest USD600 mn to build wind farms in Egypt. The final buyer of the Beni Suef power plant will repay international creditors' loans directly linked to the plant...

Market Overview  SWDY ORAS ETEL ORWE CCAP prepared by: Mayada Amin - CETA, CFTe

UK's Actis has agreed with the Sovereign Fund of Egypt to purchase the Gabal El-Zeit station for USD350 million. The government has received five offers from investors interested in acquiring the 580-MW wind farm, Planning Minister said, without disclosing the names of the would-be investors. The government agreed with the Gulf sovereign funds that invested in Egyptian companies that their pr...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Pitch: HELI (FV: EGP12.44, OW) Board approved setting up a general assembly to look into the offer submitted by the National Organization for Social Insurance to buy HELI's 7.1 million sqm Heliopark land plot for EGP15.0 billion (implying EGP2,107/sqm) to be paid as a lump sum at contract signing, out of which costs will be deducted. The market is almost fully overlooking the value of HELI&ap...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Annual urban inflation jumped to 37.4% in August from 36.5% in July. Core inflation — which strips out volatile items such as food and fuel — recorded 40.4% y-o-y in August, down marginally from 40.7% in July.    We believe the CBE will press the pause button on its upcoming meeting on 21st September, especially to assess the impact of the 100bps hike decided in its last meeting on August 3rd. The...

Market Overview  CLHO CSAG EFIH EKHOA ORAS ORHD PHDC prepared by: Mayada Amin- CETA, CFTe

Annual urban inflation has inched up to record 37.4% YoY in August, up from 36.5% in July.  On a monthly basis, urban inflation eased slightly to 1.6% MoM in August, compared to 1.9% in July. The Finance Ministry is looking to secure USD1.5-2 billion in fresh loans by 4Q2023. Net foreign reserves were essentially flat in August at USD34.93 billion, up from USD34.88 billion in July. Egypt has repai...

Market overview 

Inflation figures for August will be released on Sunday 10th September. We expect urban inflation rate to continue rising on the rally of food items' prices and uncertainties of FX prospects, recording about 38% YoY. The government has sold lands during January to July 2023 amounting to USD2.5 billion, an official said. Credit Suisse expects the government to announce new deals worth USD1 bil...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Market overview 

Egypt’s PMI recorded 49.2 in August, equivalent to July's figure, as output and new orders fell at modest rates while employment and inventories moved into expansion. A faster increase in input costs reduced overall activity.   Egypt's government plans to use the International Finance Corporation (IFC) to contract with a global consulting firm to develop a clear investment strategy for E...

Market Overview  ELSH EMFD MCQE RACC BTFH EFIC Prepared by: Mayada Amin- CETA , CFTe

Global Investment Company Limited, owned by Emirati businessmen Mohammed Alabbar and Abu Bakr Abdullah Al-Husseini, has acquired 30% of EAST (FV: EGP24.72, OW) at USD 625 million. The transaction implies a price/share of EGP28.90 and a 23/24 P/E of 10.1x. The price is above our FV by 14.5% and 34% above yesterday’s market price. USD150 mn will be made available for purchasing the needed imported r...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

NFL position shrank by USD808 million in July, recording USD-26.3 billion up from USD-27.1 billion in June. Foreign nationals applying for a residence permit after arriving in Egypt will soon be required to transfer the required fees from hard currency into EGP through a local bank or exchange office. Capital Intelligence Ratings lowered Egypt's Long-Term Foreign Currency Rating (LT FCR) and...

Market Overview  OFH ETRS SWDY prepared by: Mayada Amin - CETA, CFTe