Al Ahly Pharos

The government has received several expressions of interest from international investors to look further into the details of the 32 companies to be sold under the government privatization program.  The period from 1-18th of February witnessed the release of goods worth USD3.7 billion from Egyptian Ports, as per the Cabinet statement. The government decided to cancel Cabinet Resolution No. 94 of 20...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Investment banks are expected to finish three days of calls with investors regarding a potential Sukuk issuance by Egypt tomorrow. The Omani Investment Authority is looking for investment opportunities within the Egyptian market. A number of local, Gulf, and European investors submitted offers to acquire stakes in Egypt's largest wind power plants in the regions of Jabal Al-Zayt and Al-Zafara...

- Market Overview  - COMI - CCAP - DOMT - AMOC - KABO - EGAL - prepared by: Mayada Amin- CETA, CFTe

Egypt aims to make its first sovereign sukuk sale as soon as next week. The issuance could be worth up to USD1.5 billion. Demand for USD is unlikely to ease up until Ramadan as traders finish stocking imported essentials. Pressure will also arise in mid-April when dividend repatriation season begins. Bloomberg reported that 12-month non-deliverable forwards eased 1.2% yesterday to 36.025 against t...

- Market Overview  - EFIH - BINV - AMOC - ESRS - ORWE - EGAL - Prepared by: Mayada Amin - CETA, CFTe

Egypt’s external debt dropped by 0.5% q-o-q to just under USD 155.0 bn in 1Q FY 2022-2023 (from July-September 2022).. The figure is up some 12.8% y-o-y from 1Q FY 2021-2022.  The government is considering launching a new export subsidy program at the start of the upcoming fiscal year. The state is also looking into adding new sectors to the subsidy program. The Suez Canal Authority will raise fee...

- Market Overview  - ORWE - ADIB - EMFD - ESRS - SKPC - SUGR - ALCN - Prepared by: Mayada Amin- CETA, CFTe

*Key news articles for today*   IMF is optimistic about Egypt’s privatization program. OPEC+ doesn’t plan to up production to cover the 500k-barrel-per-day production cut Moscow is implementing in retaliation for Western sanctions. LNG production in 2023 is expected to stay flat at around 7.5 million tons, in line with 2022. Oil Minister added that maximum capacity for LNG exports could reach 12 m...

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

EGX Head, the Financial Regulatory Authority, and central bank officials are visiting Saudi Arabia and the UAE to drum up interest as the state gears up for a number of potential IPOs this year. COMI (FV: EGP 69.00, OW) 4Q22 net profit post minority recorded a robust EGP3.95 billion (-10% q/q, +17% y/y, and perfectly in line with our estimates), bringing FY22 net profit post minority to EGP16.11 b...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

MSCI February Rebalancing:  Standard Index Egypt: No Change Small Cap Index Egypt: ESRS and HELI added with no deletions Core inflation hit 31.2% in January, up from 24.4% in December.  President Abdel Fattah El Sisi denied there is any tension with Saudi Arabia.  The government is ready to offer up stakes in all military-owned firms as part of the state privatization program and partner with priv...

- Market Overview  - COMI - AMOC - KABO - BTFH - HELI - ETEL - prepared by: Mayada Amin- CETA, CFTe

Pitch: SKPC | New Gas Formula Improves Margins Substantially; Upgrade FV to EGP22.35. New gas formula announced in October translates into USD5.4/mmbtu of SKPC’s feed gas, way lower than what they used to pay for feed before. Thus, margins are expected to increase remarkably during the coming years. Currency devaluation comes at the right time to offset decline in petroleum and petroleum products...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Moody’s downgraded Egypt’s credit rating yesterday for the first time since 2013 due to reduced external buffers and shock absorption capacity. In its first rating action since last May, the agency said it was lowering its rating to B3 from B2 and changed its outlook to stable from negative. Trade balance deficit declined by 38.5% YoY to reach USD2.15 billion in November 2022. This came due to a 2...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

CBE revealed the sale of one-year treasury bills for USD1.06 billion at an average rate of 4.9%. The government intends to sell 5-20% stakes of around 20 owned companies either through IPO or by selling to strategic investors, starting March 2023. Companies include: Ennpi, EDC, Midor, Assiyut Refining, AMOC, SKPC, Ethydco, ABUK, Emethanex, ELAB, Port Said Containers, Damietta Containers, Housing &...

Market Overview  Prepared by: Mayada Amin -CETA, CFTe

Foreign reserves inched up to USD34.2 billion in January from USD34 billion the previous month Activity in Egypt’s non-oil private sector contracted for the 26th consecutive month in January. The PMI reading fell to 45.5 in January from 47.2 a month before. Policymakers consider amending capital gains tax rules in response to the current exchange-rate volatility. Capital gains tax on gains from st...

Market Overview  Prepared by/ Mayada Amin-CETA, CFTe

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The CBE decided to keep overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 16.25%, 17.25%, and 16.75%, respectively.  Egypt’s current account deficit narrowed by 20.2% to USD3.2 billion in 1Q22/23. The improved performance was attributed primarily to Net FDI inflows doubled to reach USD3.3 billion. Tourism revenues surged more than 43% y-o-y to USD4.1 b...

The Prime Minister announced that stakes in no less than 20 state-owned companies will be offered to strategic investors or on the EGX within the next year. The names of those companies should be revealed next week.   The US Federal Reserve yesterday raised rates by 25 basis points to a target range of 4.5-4.75%, as expected to a large extent in response to signs of cooling inflation and slowing g...