Al Ahly Pharos

MSCI said it would not “implement any changes as part of upcoming index reviews for any securities classified in Egypt.”  Inflation figures for April recorded 30.6% YoY from 32.7% YoY in March 2023.   Macro targets revealed by Ministry of Finance and Ministry of Planning for FY23/24: Real GDP growth will inch down to 4.1% Headline inflation will average 16.0% over the 12-month period Fiscal defici...

Market Overview  Prepared by: Mayada Amin, CETA, CFTe 

-SUGR Pitch| Stock price has been witnessing a sharp incline, recording 66% rise YTD. The movement only proves how highly correlated the company’s stock price to FX rates and global sugar commodity prices.  With speculations of another currency devaluation within 2Q23, along with the consensus estimates for global sugar prices rising by an average of 11% throughout 2023-2027 by early May compared...

Market Overview  COMI ADIB AMOC HRHO HELI  MNHD AUTO Prepared by: Mayada Amin - CETA, CFTe

Ministry of International Cooperation launched the joint national strategy between Egypt and the World Bank Group for the period 2023-2027. Emirati investors are interested to acquire stakes in Banque du Caire and Arab African International Bank. The Finance Ministry has proposed allocating EGP 586.7 bn to public investments for FY23/24, up 56% YoY. Within the FY22/23 fiscal budget, allocations to...

Market Overview  ORWE CCAP ESRS SKPC ACAMD Prepared by: Mayada Amin - CETA, CFTe

The Federal Reserve hiked interest rates by another 25 bps on Wednesday hinting to the end of its tightening cycle. Fitch Ratings has downgraded Egypt’s sovereign credit rating for the first time since 2013, cutting it to B from B+ with a negative outlook. Egypt’s net foreign reserves inched up to USD 34.55 bn in April from USD 34.45 bn in March. IMF MENA Director: “There is strong collaboration b...

Market Overview 

The tourism ministry is expecting to receive a record 15 mn tourists this year (c. USD15 billion in revenues) up 28% from 2022. Urban Communities Authority received over the last month some USD inflows in return for advance payments from Gulf investors for large land plots. Cabinet is considering fixing the interest rate for a large number of different vital sectors for a period of one year, inclu...

Market Overview  ABUK FWRY HRHO ORHD ISPH ADIB Prepared by: Mayada Amin - CETA, CFTe

CBE: Foreign currency private sector deposits increased during March by about USD471 million to reach USD16.5 billion by the end of March, and added USD884.6 million in 1Q23. Individual deposits increased by about USD293.9 million in March, to reach about USD29 billion, and added USD500 million in 1Q23.  The government will establish an emergency fund for day laborers and workers in the informal e...

Market Overview 

Egypt's net foreign liabilities widened in March by about USD1.47 billion, to exceed USD24.46 billion, compared to about USD23 billion in February 2023. Prime Minister held talks yesterday with the CEO of Abu Dhabi sovereign wealth fund ADQ to discuss the fund acquiring more assets in Egypt. Finance Minister met with his Qatari counterpart to discuss boosting investment inflows from Qatar as...

Market overview 

Pitch| Regardless of the way out of the maze, the market is playing FX-rate musical chairs. ORHD, EGAL, and ESRS current market prices are not reflecting yet the current exchange rates, and thus they have a significant upside from the current prices. AMOC, ORAS, SWDY and MFPC are showing some upside from the current market prices, but not as high as first group. If we were to choose between DSCW a...

Market Overview  COMI HRHO RMDA EFIH QNBA Prepared by: Mayada Amin - CETA, CFTe

The government will offer EGP10 billion worth of loans at a subsidized 11% interest rate to tourism players. Moody's said that Egypt's assets sale development is slower than expected.   Imports worth USD23 billion have been released from Egypt’s ports since January.   Russia will not allow the Ukraine Black Sea export deal to continue beyond May 18.   The government allocated EGP397 bill...

Market Overview  AUTO FWRY EFID ORHD ABUK Prepared by: Mayada Amin - CETA, CFTe

S&P Global Ratings affirmed its B/B long and short-term foreign and local currency credit ratings for Egypt, but they revised their outlook on the country from stable to negative. The action reflects risks that the policy measures implemented by the Egyptian authorities may be insufficient to stabilize the exchange rate and attract foreign currency inflows. The government is set to increase sp...

Market Overview  ADIB CIEB EFIH TMGH CLHO EGTS Prepared by: Mayada Amin - CETA, CFTe

The Non-Deliverable Forward Contracts on the EGP hit 44/USD, Bloomberg reported.  Prime Minister met with SFE head and chairwoman to follow up on its efforts to attract investments.  The Export Development Fund has sent the proposal for the new program to the export councils for review and comments before final approval.   The initiative to facilitate the import of cars by Egyptians abroad attract...

Market Overview  HRHO CCAP MNHD ORAS PHAR Prepared by: Mayada Amin - CETA, CFTe

The IMF wants Egypt to make more progress on privatizing state-owned companies and moving to a flexible exchange rate before it goes ahead with the first review of the country’s USD3 bn assistance package.  CBE Governor: Relaxing the supply issues and increased competition will result also in a healthier and faster inflation reduction…Interest rates are not the optimum solution. The market is expe...

Market Overview  AMOC SKPC ADIB ETEL EGCH Prepared by: Mayada Amin - CETA, CFTe

The government raised the local wheat purchase price to EGP1,500 per ardeb. US inflation reached 5% YoY in March 2023. Turkey is offering to trade with Egypt using local currencies. An alliance consisting of Smart Engineering Solutions and Frenell GmbH will establish two electricity generation stations using concentrated collectors system with a total power of 70MW and an investment cost of EGP11...