Al Ahly Pharos

- Market Overview  - Prepared by: Mayada Amin - CETA, CFTe

Egyptian pound has weakened on Tuesday where its 12-month non-deliverable forward (NDF) fell to a fresh all-time low to EGP38 per dollar, Bloomberg Al Sharq reported.   According to Al-Mal newspaper, the government received foreign offers to acquire a 20-30% stake in Beni Suef Electricity. However, the government is yet to decide whether it will be offered to strategic investors or in IPO on EGX. ...

Market Overview  Prepared by : Mayada Amin - CETA -CFTe

The SFE’s pre-IPO fund is set to offer stakes in 2-3 state-owned companies to strategic investors or via public share sales in April. Stake sales in 11 of the 32 companies in the government’s privatization program will be managed through the pre-IPO fund. Strategic investors from the Gulf could spend USD4 billion to buy into local firms in a first phase of stake sales. Qatari investors are eyeing...

Market Overview  ORWE ORHD ACAMD  MICH ALCN Prepared by: Mayada Amin, CETA, CFTe

*Key news articles for today* Net foreign reserves inched up to USD34.35 billion in February from USD34.22 billion in January 2023.  Budget deficit increased by 4% YoY to EGP367 billion during 1H22/23 as government expenses increased by 19.7% YoY. This came due to a 36.2% YoY hike in interest expenses accounting for 41.7% of total expenses. The cabinet released a statement denying rumors that mass...

Market Overview  Prepared by: Mayada Amin - CETA- CFTe

Egypt’s PMI posted 46.9 in February, compared to 45.5 in January. The net foreign liability position of the Egyptian banking system widened to USD21.7 billion in January from USD20 billion in December. The President announced a EGP150 billion program that includes wage increases and a higher minimum wage for civil servants, higher pension payouts for state employees, and a higher income tax exempt...

Market Overview  ASCM ISMQ CICH AMIA Prepared by: Mayada Amin- CETA, CFTe

Gasoline prices in Egypt, as of today, will rise by 7-11%, in light of Brent and exchange rate movements. The cost of mazut will increase by 20% to EGP6k per ton except for food and electricity producers, who will continue to be charged EGP4.2k per ton. Diesel prices will remain unchanged at EGP7.25 per liter. International wheat prices are heading to their lowest level in 17 months, which prompte...

- Market Overview  - CCAP - PHDC - MNHD - ATLC - ELSH - AFDI - prepared by: Mayada Amin - CETA, CFTe

Planning Minister: Egypt and Qatar are considering establishing a joint investment fund. Prime Minister during talks in Doha: Egypt is on its way out of its economic crisis and the currency shortage witnessed over the past year is almost at an end. Qatari investors will be allowed to repatriate profits and pledged not to introduce capital controls on FDI. Egytpt's CDS rates rose 55 basis poin...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

We remind you that MSCI EM rebalancing for February will be executed today, during which inflows of USD 1-2 million are expected for ESRS and HELI since they were added to the MSCI Egypt small-cap index.  The Ministry of Finance updated its targets for the budget deficit in FY22/23 to 6.8% of GDP, compared to the 6.1% budgeted originally. Key changes: Exchange rate, Brent at USD90-95/bbl, up from...

Egypt, the UAE, Jordan, and Bahrain signed agreements to establish nine joint industrial projects at an investment cost of USD 2 bn.  AUTO consolidated attributable net income in 4Q22 amounted to EGP8,714 mn compared to EGP413 mn in 4Q2. FY22 bottom-line recorded EGP9,985 mn compared to EGP1,408 mn recorded in FY21. The sharp incline was backed by the MNT-Halan divestment (EGP8.2 billion). We have...

Market Overview  ABUK ADIB EKHOA JUFO ALCN CSAG SWDY Prepared by: Mayada Amin- CETA, CFTe

Bloomberg reported that GCC countries await stability in Egypt's FX rate and an in-depth economic reform program before the injection of billions worth of investments into Egypt. Prime Minister is heading to Qatar today in a bid to push forward talks for fresh Qatari investment. Egypt is set to take its inaugural panda bond issuance to the market in early FY23/24, noting that early plans put...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Egypt's USD1.5 billion Sukuk issuance was c.4x oversubscribed, which narrowed the final yield to 10.875% from an initial guidance of 11.625%. Cabinet approved yesterday setting price floors for corn, soybean, and sunflower crops sold by farmers to the government, to encourage farmers to increase production and lower the country’s import bill. FDI in 1QFY22/23 reached USD3.3 billion (+94% YoY)...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Egypt's sovereign sukuk of USD 1.5 bn was about 3.5x oversubscribed.  The final guidance price is 11.125% (± 1/8th). The government is planning to list Misr Life Insurance by the end of 1H2023. EGCH (Kima) is targeting to secure USD300 million to finance new production lines; 600 million tons for nitric acid and 800 million tons of ammonium nitrates. Kima may cooperate in this project with AB...

Market Overview  COMI AMOC ABUK CCAP ORHD ORWE ETRS EGAL prepared by: Mayada Amin- CETA, CFTe

A delegation from the EGX, the Central Bank of Egypt, and the Financial Regulatory Authority (FRA) wrapped up on Friday the week-long roadshow in Riyadh, Abu Dhabi, and Dubai where they met with 20 investment funds and institutions to raise interest in the government’s privatization program.  EBRD is expecting the domestic economy to grow at 4.3% in FY22/23 and 5.0% in FY23/24, on the back of high...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe