Al Ahly Pharos

- Market Overview  - COMI - ABUK - EFIH - SKPC - prepared by: Mohamed Othman - CETA, CFTe

Net Foreign Assets (NFA) position of the banking system fell to USD-16.7 billion in May, down from USD-12.7 billion in April. Domestic liquidity M2 increased by 1.3% MoM to record EGP6.5 trillion in May. World Bank has agreed to provide Egypt with USD500 million to boost food security. State grain buyer GASC purchased 815,000 tons of French, Romanian, Russian, and Bulgarian wheat for shipments in...

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

We published this morning the earnings expectations for companies under coverage in 2Q2022/FY2022: 1) For 2Q2022, aggregated profits will surge 44% YoY, and remain stable QoQ, 2) For FY2022, aggregated profits will rise 31% YoY, 3) Stocks that will post stand-out results sequentially in 2Q22: HELI, ESRS, IRAX, ETEL, CCAP, 4) Stocks that will witness a shift from losses to profits YoY as of 2022: C...

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

Qatari officials have discussed with the Egyptian government investing USD2-3 billion in the local market, in the form of purchases in company stakes and the real estate sector. The Ministry of Public Enterprise presented HELI's assets with investment opportunities to a delegation of Saudi investors. Prime Minister directed the ministers, the central bank, and the banking sector to coordinate...

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

JUFO 1Q22 financial indicators showing a YoY rise in revenues of 29.1% to settle at EGP2,403 mn. Bottom-line for the quarter reached EGP142 mn, +15.4% YoY. JUFO is currently trading at a FY22 P/E of 15.8x and an EV/EBITDA of 5.9x. EGCH released 3Q21/22 net profit after taxes recorded EGP151 million compared to EGP209 million recorded in 2Q21/22 and a net loss of EGP388 million in 3Q20/21. Sales fo...

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

Contrary to our expectations, the CBE decided to keep policy rates unchanged, citing slowing global activity, normalization of domestic economic activity and slower pace of increase in domestic inflation. During the visit of Qatari Emir Sheikh Tamim bin Hamad Al Thani to Egypt, discussions with President El Sisi were held including boosting cooperation in energy and agriculture, upping trade flows...

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

MPC meets today. We expect a hike of as much as 200bps, as the CBE keeps an eye on inflation and negative real interest rates. Minister of Finance said that Egypt is negotiating with the IMF on Extended Fund Facility (EFF), Standby Credit Facility (SCF), and Policy Coordination Instrument (PCI). Sovereign Fund of Egypt aims to provide attractive investment opportunities for other global sovereign...

- Market Overview - COMI - ABUK - OFH - OIH - MENA - ATLC - Prepared by: Mayada Amin -CETA, CFTe

Egypt and Saudi Arabia signaled their intention to strengthen economic ties during a visit by Saudi Crown Prince Mohammed bin Salman, announcing deals worth USD7.7 billion. The agreements cover key sectors including energy, tech, food, and pharma, including:  Ajlan & Bros inked a USD 3.3 bn agreement to build a facility for storing petroleum products with the Egyptian Arab Supply Chain Group C...

- Market Overview - MNHD - RMDA - SKPC - DOMT - POUL - EFIH - Prepared by: Mayada Amin- CETA, CFTe

Real estate developers are: 1) not permitted to launch the sale of units before obtaining the ministerial decision approving the masterplan, 2) required to open an independent bank account for the project/phase to be launched, 3) to submit a semi-annual financial report, approved by the developer’s auditor, outlining installments collected from buyers and expenses spent, 4) to keep a 5% reserve of...

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

Fitch has cut Egypt’s GDP growth forecast for FY2022/23 to 4.4% from a prior projection of 5.5%. While discussing FY2022/23 budget, Parliament voiced their concerns that the government should rein in its borrowing plans and put a cap on the country’s debt levels. The Suez Canal Economic Zone is working with DP World on a logistics area, that will be followed by an industrial zone soon, according t...

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

Saudi Crown Prince Mohammed bin Salman is scheduled to visit Egypt, tomorrow, as part of a tour of the region that will also include Jordan and Turkey.  The Egyptian Central Depository and Registry will be officially launched in 4Q22, in preparation for the discussions with the Euroclear platform. The government has secured from local farmers around 4.1 million tons of wheat. FWRY reported 1Q22 at...

- Market Overview - ABUK - FWRY - HELI - MNHD  - TMGH - ORAS - SVCE - EDBM - Prepared by: Mayada Amin - CETA, CFTe

The Federal Reserve hiked interest rates by 0.75%. Local exchange rate weakened to 18.77/USD during yesterday's trading.  Electricity prices for residential consumers will remain unchanged until at least the end of 2022. Trade deficit decreased by 39.7% YoY in March, recording USD2.26 billion.   Egypt and Israel will increase gas exports to the EU under an MoU that will run for three years. I...

- Market Overview - COMI - EDBM - AIH - ARAB - ASPI  -EPCO - LCSW - PRCL - Prepared by: Mayada Amin -CETA, CFTe

Fitch expects Egypt to receive USD6.5 bn of IMF funding within 3 months or less. Aldar Properties is considering acquiring MNHD (FV: EGP3.26, OW). Positive for land owners, OCDI (FV: EGP20.02, OW), and BINV (FV: EGP17.67, OW) which holds a 7.50% stake in MNHD. The Prime Minister launched the localization of vehicles production strategy yesterday. Egyptian International Motors (Renault), the Suez C...

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