Al Ahly Pharos

Market Overview  Prepared by: Mayada Amin - CETA, CFTe

The IMF’s executive board has approved a 46-month USD3 billion financial support package for Egypt, saying it will catalyze additional funding of about USD14 billion. The agreement provides for an immediate disbursement of about USD347 million. NUCA approved allocating land plots directly to foreigners on the condition that the land’s value is fully paid in US Dollars. The CBE’s board approved ext...

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

The Federal Reserve raised its benchmark interest rate to the highest level in 15 years by half a percentage point. Officials expect to keep rates higher through next year, with no reductions until 2024. According to a draft law to amend some provisions of the income tax law, the Egyptian government intends to impose a new tax bracket of 27.5% on individuals’ income that exceeds EGP800,000 annuall...

- Market Overview  - COMI - CLHO - JUFO - FWRY - EFIC - SPMD - UNIT prepared by: Mayada Amin - CETA, CFTe

The Minister of Electricity and Renewable Energy confirmed that there are approximately 100,000 MW of renewable energy that will be directed to producing green hydrogen over the next 10 years. Egypt is in negotiations with three major global entities to export 3,000 MW of power to the European power grid through a submarine electrical line to Cyprus and Greece. The amount of carbon-intensive mazut...

- Market Overview  - COMI - EFIH - MNHD - TMGH - EAST - ATQA - ALCN - MPCO - RACC prepared by: Mayada Amin- CETA, CFTe

Saudi Arabia’s sovereign wealth fund is in advanced talks to acquire Egypt’s state-owned United Bank in a deal that could be worth about USD600 million (EGP14.76 billion). The transaction implies higher-than-sector-average multiples. In light of the mounting pressures, we expect the CBE to considerably hike interest rates by 200bps, maybe sooner than its meeting planned on 22nd December, with a li...

Market overview  Prepared by: Mayada Amin- CETA, CFTe

Stocks that did not fully reflect inflation and exchange rate weakness: CIEB, EFIH, JUFO, TMGH, ORHD, PHDC, HELI, EKHO, ORAS. The cabinet approved plans for Egypt to join the New Development Bank, a multilateral lender set up by Brazil, Russia, India, China, and South Africa (the BRICS). The House of Representatives has given a preliminary nod to the government’s proposed Retail Stores Bill. A Loc...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Annual urban inflation rate in Egypt jumped to 18.7% in November, up from 16.2% in October. According to local media, the CBE renewed its instructions not to approve requests to import 13 commodities without obtaining its prior approval. Vodafone Plc’s South African subsidiary, Vodacom, has closed the acquisition of its parent company’s 55% stake in Vodafone Egypt. On a separate note, QIA acquisit...

Market Overview  Prepared by: Mayada Amin- CFTe, CETA

We published this morning our earnings expectations for companies under coverage in 4Q2022/FY2022/FY2023, where 4Q2022 should be a stable quarter YoY, with some developments. The CBE clarified that the draft law amending some provisions of the Unified Tax Procedures Law submitted by the government is only related to exchanging information with foreign tax authorities and not with the Egyptian Tax...

- Market Overview  - MENA - RAYA - ADIB - ATLC - EAST prepared by: Mayada Amin - CETA, CFTe

We issued this morning our equities strategy for 2023, titled "Despite Challenges, Valuations Do Stand Out", in which we present:  •Macro Backdrop| A Bumpy Road to Recovery •Equity Strategy| An Overdue Catch-Up Supported by EGP Weakness •Data Screens| All-in-One Deck •Sector Reviews| Outlook, Hopes, Fears, Top Picks, and Stocks Awaiting Catalysts The IMF’s executive board will discuss Eg...

- Market overview  - ISPH - PHDC - CCAP -,TMGH - ORAS - SKPC - ACGC - ARAB - Prepared by: Mayada Amin, CETA, CFTe

Trade deficit decreased by 41.3% YoY in September, on an annual basis, to USD2.44 billion. Exports increased by 11.6% YoY to USD4.11 billion, while imports decreased by 16.4% YoY to record USD6.55 billion. Suez Canal revenues jumped to USD7.2 billion during 11M2022, an increase of 26% YoY.   Assistant Minister of Transport for Operation and Budgets revealed the ministry's efforts to prepare 1...

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

Minister of Finance expects the first installment of the IMF loan of about USD750 million to be received during December, which represents 25% of the total value of the USD3 billion loan. Minister of Finance expects the issuance of Panda bonds worth USD500 million before the end of March 2023. Egypt's PMI dropped from 47.7 in October to 45.4 in November. The government could sell stakes in co...

Market Overview  CLHO ISPH MNHD OFH EMFD TMGH prepared by Mayada Amin- CETA, CFTe

Federal Reserve Chairman confirmed that smaller interest rate increases are likely ahead and could start in December. Remittances from Egyptians abroad are set to rise 2.5% this year, according to the World Bank’s latest forecast. The International Islamic Foundation affiliated with the Islamic Development Bank is close to activating the USD6 billion financing agreement with the Egyptian governmen...

- Market Overview  - HELI - CCAP - ASCM - ORWE - AFDI - AMOC - AMIA - OCDI - prepared by: Mayada Amin - CETA , CFTe

The Egyptian government has finalised agreements with Emirati firm AMEA Power to build a solar park and a wind farm with a combined capacity of more than a gigawatt (GW) in a USD1.1 billion deal, the cabinet said.  29 global firms including IBM, Amazon, Microsoft and Majid Al Futtaim will up their investments in our outsourcing industry under agreements inked with the CIT Ministry’s Information Te...

- Market Overview  - HELI - CIRA - EKHO - ORHD - FWRY - prepared by: Mayada Amin - CETA, CFTe