Al Ahly Pharos

- Market Overview - COMI - ABUK - ALCN - AMOC - CCAP - CIEB - PHDC - SKPC - TMGH Prepared by: Mayada Amin - CETA, CFTe

Egypt’s foreign reserves were effectively unchanged at nearly USD 33.2 bn in September. The CBE is working on designing onshore non-deliverable forwards (NDFs) and options to hedge against the risk of currency depreciation.  The National Bank of Egypt and Banque Misr are now offering 5.30% on three-year CDs and 5.15% on five-year deposits, up from 2.15-2.25%.  At least four banks (CIB, HSBC Egypt,...

- Market Overview - COMI - HELI - ABUK -  AUTO -  EFIH - FWRY - ORWE - SWDY - Prepared by: Mayada Amin - CETA, CFTe

The government has concluded the valuation for assets worth USD15 billion to offer them to foreign investors. Suez Canal revenues recorded USD683.2 million in September (+21% YoY), supported by 9% growth in volumes. Eight Austrian water companies are in Egypt to discuss investment in the water, wastewater and desalination projects.  The Administrative Capital for Urban Development Company presente...

- Market Overview - COMI - EMFD - ABUK - CCAP - AMOC - HRHO - Prepared by: Mayada Amin - CETA, CFTe

The IMF should reach staff-level agreements on “sizeable” loans to Egypt and Tunisia “very soon," IMF Managing Director Georgieva told Reuters.  Egypt’s PMI recorded 47.6 in September, unchanged from that seen in August. Output and new business fall sharply, Overall input costs rise at a marked pace, but Headcounts expand for the third month in succession.  The EGP yesterday registered 19.67...

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

Net foreign assets (NFAs) of the banking system declined from USD-19.4 billion in July to USD-20.09 billion in August (net foreign liabilities (NFLs)) position. We assume those movements are related to the CA deficit.  We expect urban annual inflation to increase to 14.9% YoY (1.4% MoM) on continued increase in some Items including food items and tobacco. The IMF will release its latest World econ...

- Market Overview - COMI - ESRS - ABUK - AMOC - FWRY - PHDC - SKPC - SWDY  Prepared by: Mayada Amin - CETA, CFTe

Minister of Planning noted that real GDP growth in Egypt reached 6.6% in FY21/22. The market is anticipating the release of large quantities of imported strategic commodities from Egyptian ports, including feed (corn and soybeans), to increase the supply in the market and limit the successive price increases. A Russian wheat shipment of 42k tons is scheduled to arrive at Alexandria port today. Min...

Market Overview  COMI ESRS FWRY HELI MNHD prepared by: Mayada Amin - CETA, CFTe

The Central Bank held a meeting with the directors of treasury and money management in banks, to discuss a proposal related to the possibility of launching high-interest savings certificates on the dollar (at 3% interest rate) targeting Egyptians abroad.  Egypt’s economic conference will take place on October 23-25, where Ministers will get together with senior members of the business community. E...

- Market Overview - COMI - AUTO - MNHD -  HELI - PHDC - Prepared by: Mayada Amin - CETA, CFTe

Import challenges facing manufacturers should be resolved within two months, El Sisi said. Egypt received 4.9 million tourists in 1H2022, compared to 2.6 million tourists in 1H2021. This points to tourism revenues of USD10 billion in 2022.  The pre-offering fund of the Sovereign Fund of Egypt has started to list and acquire the assets that it plans to offer to strategic investors before the public...

Market Overview ABUK AUTO CCAP HELI ORHD UASG SKPC DSCW ELSH Prepared by: Mayada Amin - CETA, CFTe

Enterprise reported that the government has formed a new council of economic advisors, adding that the council will see prominent members of the business community that can provide support to the government through our current challenges. The government aims to go ahead with the listing of “Wataneya” and “Safi” before the end of this year. Minister of Planning said that the government is about to...

- Market Overview - ABUK - HRHO - MFPC - MNHD - SWDY  -POUL - Prepared by: Mayada Amin- CETA, CFTe 

The Madbouly government expects to raise as much as USD 6 bn by selling stakes in state-owned assets by mid-2023, Planning Minister said.  Egypt's liquefied natural gas (LNG) exports reached USD 8 bn in FY21/22/. The government will target USD 8.5–10 bn in natural gas revenues in FY22/23. Egypt is targeting digital exports of USD5.5 billion in FY22/23 (+13% YoY). The Ministry of Electricity i...

- Market Overview - ABUK - AMOC - CCAP - FWRY - SKPC - ORAS - HELI - HDBK - Prepared by: Mayada Amin - CETA, CFTe

Matching our projections, MPC decided to keep rates unchanged.   The CBE also decided to increase the required reserve ratio to 18% from 14% on deposits held in local currency with a maturity of less than 3 years. The required reserve ratio on foreign currency deposits remains the same at 10%.   Positive impact on economy but banks will bear the cost. Banks with higher a higher deposit base whose...

Federal Reserve raised interest rates by 75 bps, raising rates by 300 bps since the start of 2022. Egypt's MPC committee meets today, and we hope rates would be maintained, taking into account cost-push inflation, commodity prices cooling down, the fiscal deficit, and economic growth. Our projection comes against consensus expectations for a 200 bps rate hike.  Sodic is currently not looking...

Market Overview  Prepared by: Mohamed Othman- CETA, CFTe

The Federal Reserve ends its policy meeting today and is widely expected to announce a third successive 75-bps hike. CBE eased some regulations governing importation: ·       The Central Bank allows the use of the balances of the parent or affiliated company in foreign currencies in local banks for importation, provided that they are sold to the bank and the bank resells them to the subsidiary.  ·...

Market Overview  Prepared by: Mohamed Othman- CETA, CFTe

Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, said that the Fund’s negotiations with Egypt and Tunisia to obtain financing “are in continuous progress, and within a short period they will be completed.” Egypt and Danish shipping giant Maersk could cooperate on a USD 15 bn project to produce clean fuel for ships. HRHO’s CEO Karim Awad is ex...