Al Ahly Pharos

Market Overview 

A number of US Democratic lawmakers have joined a group of senators in calling on the Biden administration to withhold a quarter of Egypt’s annual USD 1.3 bn of military aid on human rights grounds. ADQ-owned food company Agthia is no longer looking to acquire military-owned bottled drinks firm Safi, Egyptian men living abroad will be able to begin the process of settling any outstanding military...

Market Overview  SWDY  SKPC EGCH

Egypt’s annual urban rate of inflation inched up to 36.5% y-o-y in July, from 35.7% in June. On a monthly basis, inflation slowed for the second consecutive month, to 1.9% from 2.1% in June. Core inflation — which strips out volatile items such as food and fuel — dipped to 40.7% y-o-y in July from June’s 41%. Monthly core inflation fell to 1.3% in July from 1.7% in June.  In tandem with consensus...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The cabinet approved draft legislation to give properties unique digital IDs. The cabinet also greenlit the suspension of the 14% agriculture land tax for an additional year starting from 1 August. The tax has been suspended since 2017. The government approved two presidential decrees allowing Egypt to join the African Development Bank’s Africa50 for Project Development and Financinand Africa50 fo...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The government plans to launch a new export subsidy program by the end of August or the beginning of September. Non-petroleum exports decreased by 17% to record USD16 billion during the first half of the current year, compared to USD19.3 billion in the previous year. Petroleum exports declined by 53%to USD3.7 billion in 5M2023, compared to USD7.9 billion in the same period of 2022. The Ministry of...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Some provisions of the customs law have been amended to facilitate customs release procedures under a decision issued by Finance Minister.  The Supreme Council for Investments is studying offering more incentives to the industrial sector. GAFI will launch its new digital platform within days. The platform will provide investors with the services to establish companies, authenticate contracts at no...

Market Overview  CIEB ADIB MTIE BINV EMFD Prepared by: Mayada Amin- CETA, CFTe

After the USD-denominated CDs issued by public sector banks and the unexpected rates rise by the MPC, and with the next date for the IMF review in September, the market has started to focus, once again on weaker EGP beneficiaries. We remind you that ESRS, EGAL, TMGH, ORHD, and ADIB have not reached full potential in previous market rallies. Reserves inched up to USD 34.88 bn in July from USD 34.81...

Market Overview  ABUK ETEL HRHO GBCO ORWE  ESRS ISPH prepared by Mayada Amin - CETA, CFTe

The Central Bank of Egypt (CBE) hiked interest rates by 100 basis points on Thursday.  The contraction in Egypt’s non-oil private sector slowed to its softest pace in nearly two years in July, suggesting initial pointers of a recovery in market demand following a lengthy downturn. The country’s PMI rose for a fourth consecutive month to hit 49.2 in July from 49.1 in June.   The government, in coop...

Market Overview 

We expect CBE to maintain interest rates at its meeting today in light of the preceding interest rate raises taken in December and March (+500 bps) to attempt to control the then expected rise in inflation. In addition, raising interest rates will be closely tied to the movement in the official exchange rate, which is not expected to happen before 4Q23.    Oil cartel OPEC+ is expected to leave out...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The deficit in Egypt’s banking system net foreign assets widened to negative USD 27.1 bn during the month from negative USD 24.4 bn in May. According to Egypt's agreement with the IMF, the Central Bank pledged not to grant any bank an exception from maintaining open currency positions (which is the difference between assets and liabilities in foreign currency) and to consult with the fund if...

Market Overview  EFID ORAS ALCN BTFH GBCO prepared by: Mayada Amin - CFTe, CETA

Egypt received nearly USD13 billion in remittances from Egyptians abroad in 1H2023. The Fuel Pricing Committee is expected to maintain the prices of petroleum products during the current quarter as a result of the decline in Brent prices in 2Q23, and the stability of the official exchange rate. The International Islamic Trade Finance Corporation (ITFC) aims to inject USD500 million into Egypt duri...

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

EGX30 Rebalancing| Starting August 1, the following stocks will be included in the EGX30 Index: BTFH, BINV, ORHD, ALCN and the following will be excluded: TALM, ISPH, CLHO, RMDA. OCDI (FV: EGP23.30, OW) reported strong 2Q23 sales of EGP5.4 billion, up 83.3% y/y and 93.9% q/q, bringing 1H23 sales up 22.5% y/y to EGP8.2 billion. Net profit in 2Q23 reached EGP147.8 million, up 125.6% y/y and down 21....

Market Overview  CIEB ADIB SWDY ORWE ESRS ABUK JUFO AMOC prepared by: Mayada Amin- CETA, CFTe

We expect the MPC to maintain interest rates at the next meeting in light of the preceding interest rate raises taken in December and March (+500 bps) to attempt to control the then expected rise in inflation and to match the monetary tightening expected by the Fed. In addition, raising interest rates will be closely tied to the movement in the official exchange rate, which is not expected to happ...

Market Overview  ADIB AMOC JUFO ATQA prepared by: Mayada Amin , CETA, CFTe