Al Ahly Pharos

Market Overview  COMI RMDA CLHO HELI ABUK  AMOC  prepared by: Mayada Amin - CETA, CFTe

The Federal Reserve enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%. Minister of Finance said that the government might issue local Sukuk at the present time, given the current adverse conditions of international markets, worth USD500 million to USD1 billion. Egypt is working to resolve differences with the IMF in talk...

Market Overview  COMI CLHO TMGH ABUK  ADIB AMOC ETEL  HELI  HRHO  RMDA  SWDY  prepared by: Mayada Amin- CETA, CFTe

IMF: Egypt still suffers from gaps, including the high debt burden and large financing needs, hence the necessity of decisive development in adopting the deep financial and structural reforms that Egypt needs to increase the competitiveness of its economy, enhance transparency, and strengthen resilience against shocks. IMF lowered its growth forecast for global growth to 3.2% this year and 2.9% ne...

- Market Overview - COMI - ORWE - ACGC - MICH - SUGR - Prepared by: Mayada Amin - CETA, CFTe

US Federal Reserve starts its two-day policy meeting today. The consensus is that the Fed will go ahead with a second consecutive 75-bps rate hike to control inflation. Egypt, Jordan, the UAE, and now Bahrain, have identified USD3.4 billion worth of joint investment projects in the first phase of a USD10 billion industrial partnership signed in May.  EGX officials have held a series of meetings wi...

- Market Overview - COMI - ABUK - ADIB - AMOC - CCAP - ETEL - CLHO - RMDA - SKPC  -Prepared by: Mayada Amin - CETA, CFTe

Egypt’s external debt jumped 17% y/y in 3Q FY2021-2022 to USD157.8 billion. Long-term debt accounted for around 83% of the total figure.  Jordan will impose pre-clearance fees for Egyptian imports and mandate the use of letters of credit (L/Cs) for financing trade with Egyptian companies. The Financial Regulatory Authority is studying obligating companies listed on the stock exchange to increase t...

- Market Overview  - Prepared by: Mohamed Othman- CETA, CFTe

Economic and Social Development Plans for FY2022-23 target an economic growth rate of 5.5% and estimated investments about EGP1.4 trillion, compared to EGP1.2 trillion estimated for FY2021-22, with GDP at current prices targeted at EGP9.22 trillion. Russia and Ukraine signed a landmark agreement to resume grain exports through the Black Sea.  The European Central Bank raised interest rates by a la...

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

Egypt has approved pre-listing procedures for Watenya and Safi, as the first step toward stock market listings. Serbia will export grain, primarily wheat, to Egypt, as both countries agreed to boost political and economic cooperation. Egypt’s exports to its 5 largest trading partners in the world increased recording about USD4.97 billion in 4M22, compared to USD2.34 billion in 4M21. An Egyptian-fo...

- COMI - ABUK - AMOC - AUTO - CCAP - ORWE - PHDC - HELI - MFPC - OIH - Prepared by: Mayada Amin- CETA, CFTe

The government is planning to add another 450k family to the Takaful and Karama and raise the personal income tax exemption threshold to EGP 2.5k from EGP 2k. GASC canceled the tender to purchase an unlimited amount of wheat, due to high prices, reaching USD443 per ton. Egypt's exports of natural gas jumped by 406.5% YoY to USD2.8 billion in 1Q22. Russia and Ukraine are approaching an agreeme...

- Market Overview  - ABUK - COMI - HELI - TMGH - AUTO -,Prepared by: Mohamed Othman- CETA, CFTe

Energy, Climate Change, and the Grand Ethiopian Renaissance Dam (GERD) were all up for discussion yesterday during talks between El Sisi and German Chancellor Olaf Scholz in Berlin. El-Sisi called for cooperation and coordination between Egypt and Europe in various fields. “All the gas that can be extracted from the eastern Mediterranean can be exported from Egypt to Europe with the capabilities w...

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

African Development Bank BoD approved a USD271 mn loan to Egypt within the program to guarantee food security, as part of a FY2022-23 facility of USD1.07 bn in cooperation with WBG and ADB. MNHD’s Board stated that OCDI’s indicative acquisition price range of EGP3.20/share to EGP3.40/share does not reflect MNHD’s value.  ORHD’s Makadi Heights is preliminarily considering bank debt to finance the f...

Market Overview  Prepared by: Mayada Amin, CETA, CFTe

IMF and Egyptian officials held “productive discussions” on a fresh assistance program during staff-level talks, which took place between 26 June and 7 July.  Fuel Pricing Committee decided to hike fuel prices by an average of 7.5% compared to 2Q2022, and increase diesel prices to EGP7.25/L from EGP6.75/L.  Net International Reserves (NIR) dropped by 6% MoM by end of June to USD33.38 billion, as t...

Annual urban inflation retreated to 13.2% YoY in June down from 13.5% in May, as food & beverages item recorded a slower annual increase, 22.3%, and a decline by 1.8% MoM.  Trade deficit dropped in April by 53% YoY to USD1.70 billion. The value of exports increased by 54.2% to USD4.94 billion, while imports decreased by 2.7% to USD6.64 billion. Egypt's PMI fell to 45.2 in June from 47.0 i...

The Egyptian economy grew at a 6.2% clip in FY2021/22, up from 3.3% the previous year, as positive growth was recorded across all sectors. Egyptians' remittances rose by 7.7% YoY during 4M2022 to reach about USD11.1 billion. In April, remittances recorded 24% growth, registering USD3.1 billion. Egypt purchased 444,000 tons of Russian, French, and Romanian wheat directly from traders, for deli...

The government reviewed the performance of the FY2021/22 budget. Primary surplus recorded 1.3%, while the overall deficit recorded 6.1% down from the 6.8% in FY2020/21. The Suez Canal recorded its highest ever annual revenues in FY2021/22, recording USD7 billion, up from USD5.8 billion in the previous fiscal year. Egypt's exports increased during 1Q2022 by 44.3% to reach USD14 billion. Howeve...

- Market Overview  - COMI - Prepared by: Mohamed Othman- CETA, CFTe

Cheap valuations, higher yields, faster growth, and the revival of the Chinese economy could make a bull case for EM assets, as per some global investment banks. (Bloomberg)  There are signs that demand for fuel could begin to fall as soaring oil and gas prices increase economic pressure on consumers. Foreigners' outstanding balance of T-bills plunged to around USD10 billion in March and USD9...