Al Ahly Pharos

Market Overview  ACAMD  ACGC CICH ORAS UASG ETEL DSCW Prepared by: Mayada Amin - CETA, CFTe

Ministry of Finance proposed a new set of taxes and fees on luxury products and services, with the intention to raise tax revenues for the next fiscal year.  Tax changes that would reduce income tax for lower earners and raise tax for those on higher incomes received approval from the House Planning and Budget Committee on Thursday. Those would raise the personal income tax exemption threshold to...

Market Overview  ETEL EFIH EFIC MTIE POUL QNBA Prepared by: Mayada Amin - CETA, CFTe

Qatari Finance Minister said that Qatar is committed to fulfilling its pledge last year to invest USD5 billion in Egypt. The Finance Ministry is looking to secure more long-term concessional loans from regional and international development banks to fund healthcare, education, and food spending. The CBE expects Egypt to receive USD15.2 billion in dollar funds during the coming 12 months from April...

Market Overview  COMI CIEB ADIB HRHO CCAP ETEL EFIH SKPC ORAS  Prepared by: Mayada Amin - CETA, CFTe

The African Development Bank has allocated USD 2.2 bn for water projects in Egypt. At the National Dialogue, officials called for a ‘unified industrial law’ that would merge the disparate legislation currently in effect and set up an authority tasked with eliminating bureaucratic hurdles and simplifying licensing rules for the industrial sector. The government is spending a total of EGP180 bn on t...

Market Overview  COMI ALCN ACAMD ACGC SIH CIEB DSCW FWRY Prepared by: Mayada Amin - CETA, CFTe

Oman and the Sovereign Fund of Egypt are looking into establishing a joint investment fund, which would participate in the state offering program and invest in projects across Egypt, with plans to inject USD5 billion in investments in Egypt over the next 3 years. Egypt's exports of liquefied natural gas recorded about 600 thousand tons during the month of April 2023, bringing the total export...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

Fears of a US recession are causing investors to look again at emerging markets, with an intention to increase exposure in the coming 12 months. The African Development Bank (AfDB) has agreed to provide insurance coverage for USD 345 mn of Egypt’s first USD 500 mn CNY-denominated bond issuance.  The European Bank for Reconstruction and Development aims to provide EUR 1 billion in financing to the...

Market Overview  DOMT EFID CLHO RMDA BTFH DSCW ACAMD  Prepared by: Mayada Amin - CETA, CFTe

The Monetary Policy Committee left rates unchanged, with the decision supported by cooling global and domestic inflation on the back of lower energy prices and better supply chain conditions. Abu Dhabi National Oil Company (ADNOC), Saudi Petromin, and Emirates National Oil Company (ENOC) are competing for a 20-25% stake in Wataniya. Egypt’s unemployment rate came in at 7.1% in 1Q23, down 0.1 ppts...

Market Overview  AUTO ORWE ALCN AMOC CCAP HRHO ORHD Prepared by: Mayada Amin - CETA, CFTe

The CBE has hired Barclays as the international financial adviser for the sale of its 99% stake in the state-owned United Bank. We expect April’s urban inflation reading to give the CBE a chance to keep rates on hold at its meeting today. Fitch Ratings downgraded four Egyptian banks' Long-Term Issuer Default Ratings to B from B+ and Viability Ratings to B from B+, and maintained their outlook...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The Supreme Investment Council approved 22 measures aimed at attracting more foreign investment. The decisions include: Reducing the cost of establishing companies, Expanding the issuance of the Golden License, Facilitate land ownership, Alleviate financial and tax burdens on investors, and Incentives for transportation and housing sectors, especially in new cities.  The EBRD has cut its Egypt gro...

Market Overview  ISPH ACGC ARAB RMDA CIRA TALM Prepared by: Mayada Amin - CETA, CFTe

NI Capital is preparing to sell stakes in seven state-owned companies as part of the government’s privatization program, two of which are expected to be complete by the end of the fiscal year, or June 2023.   The Ministry of Finance started accepting the paperwork for reimbursing exporters for the sixth phase of the export rebates program (EGP10 billion in total). Cash reimbursements will be made...

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

COMI (FV: EGP 69.00, OW) 1Q23 net profit post minority recorded a robust EGP6.1 billion (+43% y/y) on the back of strong margins, robust non-interest income, lower provisions, and lower effective tax rate. Stock is trading at P/E 2023 of 8.3x and P/B 2023 of 1.8x, on an attributable basis, post minority and appropriations of EGP18.8 billion (growth of 30% YoY). We update our FV on ADIB to 35.00 wi...

Market Overview  COMI RRMD CCAP HRHO CIRA ORWE ETRS Prepared by: Mayada Amin - CETA, CFTe

The government successfully sold 10% of its stake in Telecom Egypt, raising almost EGP3.95 billion. We expect April’s urban inflation reading to give the CBE a chance to keep rates on hold at its next meeting and assess the impact of the latest 500 bps hikes. The market is now expecting the CBE to postpone further EGP depreciation until after it secures foreign currency inflows to avoid exchange r...

Market Overview  Prepared by: Mayada Amin - CETA , CFTe

Expect to see fast movement on privatization transactions in Egypt, including big-ticket asset sales, before the end of June. Moody’s signaled that it could downgrade Egypt’s credit rating for the second time this year if its external position continues to deteriorate. ACWA Power, Alcazar Energy, and Infinity are reportedly among seven companies interested in acquiring Egypt’s two largest wind far...

Market Overview  CLHO HRHO ACAMD  CIRA HELI RAYA FWRY Prepared by: Mayada Amin - CETA, CFTe