Al Ahly Pharos

CBE repaid foreign debt obligations in 9M FY21/22 of USD20 billion.  Egypt's external debt continued to grow to USD157.8 billion as of March 2022, +17% YoY, and 34.6% of GDP.   GCC deposits with the Central Bank of Egypt amounted to about USD14.9 billion as of March 2022, with 8 deposits due to KSA, UAE and Kuwait. Foreign holdings of Egyptian treasury bills rose for the first time in five mo...

- Market Overview - CLHO - ACGC - ADIB - EXPA - GDWA - ARAB - DSCW - Prepared by: Mayada Amin - CETA, CFTe 

Egypt plans to issue international bonds worth USD6 billion in FY 2022/23 to finance its foreign exchange needs. The same article adds that Egypt is negotiating with the IMF a USD15 billion facility.  Acquisition deals recently concluded by Gulf funds (ADQ, PIF) on the Egyptian stock exchange can be repurchased within two years from the date of sale, according to the local media. FRA has approved...

- Market Overview - COMI - EFIH - ELKA - ACAMD - RAYA - UASG - ETEL - ORWE - SWDY - Prepared by: Mayada Amin - CETA, CFTe

El Sisi appointed 13 new ministers in a cabinet shake-up. Key changes: CIB’s retail banking chief, Ahmed Issa, replaces Khaled El Anany at the Tourism Ministry, while Nevine Gamea will make way for Rep. Ahmed Saleh, who had headed the House Economic Affairs Committee. Cairo Glass Chairman Mahmoud Esmat has been named the new public enterprises' minister, replacing Hisham Tawfik.   CBE deputy...

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

The Saudi sovereign wealth fund acquired stakes in four EGX-listed companies for USD 1.3 bn. El Mal newspaper reported that ADQ looks to increase its shareholding in MFPC by an additional 10-15%. Core inflation, which excludes volatile items such as food and fuel, climbed 15.6% on an annual basis in July, up from 14.6% in May.  The cabinet will announce the full details of the measures it will imp...

- Market Overview - ETEL - EXPA - ADIB - Prepared by: Mayada Amin - CETA, CFTe

Annual urban inflation rose to record 13.6%  in July compared to 13.2% in June. On a monthly basis, inflation rose by 1.3% in July, from 0.1% in June, according to CAPMAS.  Egypt will begin cutting back on electricity consumption nationwide from next week in a bid to redirect more natural gas towards exports. Ministry of Electricity achieves a monthly surplus of USD100- 150 million since October 2...

- Market Overview - ORWE - EKHO - ALCN - ADIB - EKHO - EFIH - ELEC - SPMD - prepared by: Mayada Amin- CETA, CFTe

Egypt is in negotiations with China to pay off debt through the sale of strategic assets. Egypt's non-oil exports by 20% during the first half of this year, reaching about USD19.4 billion. Farid: A lot of improvements will be implemented to the listing requirements to encourage a large number of companies to consider public offerings. Emirati fertilizer company CFC Group will establish an ind...

- Market Overview - ETEL - COMI - CLHO - PHDC - EKHO - ESRS - HELI - OLFI - Prepared by: Mayada Amin - CETA, CFTe

If commodity prices are easing and the local currency is weakening, ORWE hits two birds with one stone. ORWE is a high-yield stock with DY15-17%. Stock is trading at 2022 P/E of 4.2x and EV/EBITDA of 4.3x. (Pitch) Foreign reserves slipped to USD33.14 bn in July, down from USD33.40 bn a month earlier. Mohamed Farid has been appointed as acting chairman of the FRA for one year. Brent lost c.10% duri...

Market Overview  Prepared by: Mohamed Othman- CETA, CFTe

Saudi Arabia’s sovereign wealth fund has set up a company to manage its investments in Egypt and is looking at promising sectors such as infrastructure, real estate, health care, financial services, food and agriculture, manufacturing and pharma. Saudi Arabia’s sovereign fund appoints EFG Hermes as an advisor to acquire United Bank. The government has inked an MoU with the Chinese appliance manufa...

- Market Overview - ABUK - HRHO - ALCN - COMI - ETEL - FWRY - EFID - SVCE - Prepared by: Mayada Amin- CETA, CFTe

The EGP continued to slide against the USD and closed at 19.15 yesterday. Suez Canal Authority (SCA) is considering listing 10-15% of three of its companies on the EGX by the end of 2022.  Prime Minister has given orders to solve problems facing the industrial sector, in a meeting with the Minister of Trade and Industry. Qualifying bidders looking to manage and operate the soon-to-be-established s...

- Market Overview - CCAP - HRHO - ISPH - JUFO - TMGH - ACGC - PRCL -Prepared by: Mayada Amin - CETA, CFTe

Egypt’s PMI recorded 46.4 in July, up from a two-year low of 45.2 in June.  Revenues at the Suez Canal reached a record high of USD 704 mn in July (+32% YoY). SCA expects Canal revenues to hit USD7.8-8.0 bn in 2021, up from USD6.3 bn in 2021. ADQ Holding is in negotiations with the Egyptian government to acquire an additional stake of about 10 to 15% in MFPC.  Eight major GCC and foreign investors...

Market Overview  Prepared by: Mohamed Othman - CETA, CFTe

Minister of Finance revealed that the size of the loan requested by the government from the International Monetary Fund is less than USD15 billion. Ministry of Finance has not yet determined the final size of the international bond to be offered in 2022-2023. Free Zone Companies are looking into securing their raw material needs from the local market, to alleviate some of the pressure on foreign c...

- Market Overview - COMI - HELI - ALCN - POUL - SPMD - CSAG - MICH - Prepared by: Mayada Amin- CETA, CFTe

The EGP settled at 19.0084 against the USD during yesterday's trades, leaving it down more than 20% since March.  Remittances from Egyptians working abroad declined 8% y-o-y in May to USD 2.4 bn. Flows were down 23% from USD 3.1 bn in April.  Egypt wants to attract USD 10 bn of foreign direct investment during the current fiscal year, up from an average of USD 7.3 bn a year over the past five...

- Market Overview - RMDA - ESRS - MNHD - HELI - ADIB - AMOC - Prepared by: Mayada Amin- CETA, CFTe

Egypt has again appealed to the UN Security Council to intervene in the dispute with Ethiopia over the Grand Ethiopia Renaissance Dam (GERD).  The distribution arm of Abu Dhabi National Oil Company (ADNOC) has agreed to acquire 50% of Total Energies Egypt for USD 186 mn. Total Energies represents EGP2.52/share out of BINV’s total SoTP valuation of 17.67/share.  315 Egyptian contractors registered...