Al Ahly Pharos

- Market Overview  - ISPH - ORWE - AMOC - COMI - CIEB - HELI - prepared by: Mayada Amin- CETA, CFTe

Egypt's PMI rose in June to 49.1, its highest level in almost two years.  The cabinet has denied rumors circulating about the Customs Authority banning the import of a list of goods for a three-month period.  Cabinet approved a decision lifting current controls on foreign ownership of real estate, provided that foreigners pay for their purchases in hard currency and via bank transfer to a sta...

- Market Overview  - ORAS - EKHOA - ADIB - MFPC - ABUK - ACAMD  prepared by: Mayada Amin- CETA, CFTe

Egypt and Turkey officially agreed to restore diplomatic ties and reinstate ambassadors.  EGX Head revealed that there are talks with a large number of private companies to list them on the stock exchange, in the petrochemical, energy, and tourism sectors.  Trading treasury bills on the EGX for primary dealers should start in 3Q23, with plans to make it available for individual investors later nex...

Market Overview  PHAR ABUK SKPC prepared by: Mayada Amin- CETA, CFTe

Pitch: Buckle up for 2Q23 Earnings Season| Earnings will go down sequentially by 14%, which is the impact of lower commodity prices and stable exchange rate. Highest growth in earnings for full year in 2023 (>100% YoY): MBSC, LCSW, POUL, ALCN, FWRY, MCQE, EGCH, DOMT, and SKPC. Some stocks that will deliver positive surprises for 2Q23 in earnings will include ESRS, IRAX, CCAP, GBCO, MCRO, MBSC,...

- Market Overview  - CIEB - ADIB - HRHO - EKHOA - GBCO - ETEL - ISPH - ORAS - prepared by: Mayada Amin- CETA, CFTe

The African Export-Import Bank (Afreximbank) has begun talks with the Central Bank of Egypt and commercial Egyptian lenders to add them to its Pan-African Payment and Settlement System (PAPSS) in 2H 2023, which aims in part to cut African nation’s reliance on the USD over time in regional trade. The Asian Infrastructure Investment Bank (AIIB) is guaranteeing more than USD 200 mn worth of our upcom...

Market overview  Prepared by: Mayada Amin - CETA, CFTe

The Hidden Good in the Bad: MSCI might reclassify Egypt to a frontier market. MSCI has said it could launch a consultation to reclassify its Egyptian indexes from “emerging” to “frontier” or “standalone” status “in the event of further deterioration of market accessibility in Egypt.”  If Egypt was downgraded to a frontier market, it might get similar or better allocation from global funds, dependi...

Market Overview  ISPH SKPC ORHD ORAS CCAP AMOC Prepared by: Mayada Amin - CETA, CFTe

*Key news articles for today*   In a bid to level the playing field between state and private entities, the cabinet approved several draft bills and amendments, including the elimination of tax exemptions granted to some state entities, extending incentives granted to private projects, and streamlining dispute resolution in economic and district courts.    Egyptian non-oil exports recorded a decli...

Market Overview 

The IMF is having good discussions with the Egyptian government. Director of the International Monetary Fund, said that Egypt has taken the right steps in its economic reform agenda and said she was confident there would be progress in the IMF’s talks with the government.  The cabinet will form a special unit to fast-track the government’s privatization program and work directly with the Internati...

- Market Overview  - CLHO - ORHD - JUFO - GBCO Prepared by: Mayada Amin - CETA, CFTe

Qatari investor could announce it will buy a significant minority stake in a state-owned hotels holding company in the coming days. ORHD (FV: EGP20.38, OW) generally reacts positively to the news. A 30% stake in Egyptian Drilling Company (EDC) has been transferred to the Sovereign Fund of Egypt’s pre-IPO fund in preparation to sell the EDC stake to a strategic investor in 4Q 2023. National Bank of...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

The International Finance Corporation (IFC) will come on board as an advisor to the Egyptian government on the state’s privatization program. SCZone Chairman is in New Delhi to kick off a promotional roadshow looking to attract Indian investments to the economic and industrial areas in Ain Sokhna and Port Said. The Suez Canal Authority intends to establish a new holding company, which includes 7 a...

Market overview 

PITCH| BINV to acquire OFH; Good deal for all. BINV's Board approved the acquisition of a minimum of 51% and up to 90% of the share capital of OFH through a MTO via a share swap ratio of 1 share of BINV for 56.76 shares of OFH (based on a number of 4,721,121,620 shares). OFH holds EGP700 million in cash and cash equivalents, and 29.7% of CNFN. If BINV Share is valued at EGP23.50, then OFH sha...

- Market Overview  - COMI - CIEB - ADIB - HELI Prepared by: Mayada Amin - CETA, CFTe

El Sisi has suggested there will be no further devaluation of the EGP if the effect of the exchange rate is taking a toll on the lives of Egyptians. He added that we need to boost exports and lower imports. Turning to international debt markets to support reserves and help meet USD needs is no longer an option, El Sisi said.  US Federal Reserve decided to leave interest rates unchanged for the fir...

Market Overview 

*Key news articles for today* United States Inflation fell to 4.0% y-o-y in May — its lowest level in 27 months and down from 4.9% the month prior. Thus, the Fed is widely expected to leave rates unchanged.  Egypt and Iraq signed 11 MoUs yesterday during Iraqi Prime Minister's visit to Cairo. El Sisi discussed boosting ties on economic cooperation, trade, investment, and the upgrading of infr...

Market Overview  ORAS CCAP GBCO ISPH MTIE prepared by: Mayada Amin - CETA, CFTe