Al Ahly Pharos

Fed meeting will start today. Consensus expects the Fed to go ahead with a 75-bps rate hike.  Joint working committees within the Egyptian Stock Exchange, NBE, BM, and BdC are exploring the listing of 38 affiliated companies. Prime Minister launched a digital platform to discuss the State Ownership Policy Document. Egypt's industrial production fell 6.3% MoM in April (Bloomberg). Suez Canal A...

- Market Overview - TMGH - MNHD - HELI - OFH - OIH - EDBM - EHDR - RTVC - Prepared by: Mayada Amin - CETA, CFTe

Minister of Finance said that Egypt could face an extra USD10.2 billion burden the next fiscal year if wheat and oil prices remain at their current elevated levels. Finance Minister invited South Korean companies to invest in our agriculture, industry, transportation, energy, and water sectors. Minister of Finance said that the current time is not appropriate for issuing Eurobonds or Sukuk in inte...

- Market Overview - COMI - RMDA - SWDY - AUTO - EAST - EDBM - AIH - OIH - Prepared by: Mayada Amin - CETA, CFTe

Annual core inflation rate, which excludes volatile items, recorded 13.3% in May 2022, up from 11.9% in April. CBE might opt for tightening by another 200 bps, for real interest rates. Egypt has paid due debts with a total value of USD24 billion YTD, including USD10 billion in foreign debt, and USD14 billion in foreign portfolio outflows. Russian payment system “MIR” will be activated in a few day...

- Market Overview - ETEL  - ORHD - HELI - MFPC - SWDY - FWRY - ARAB - SVCE - RTVC - Prepared by: Mayada Amin - CETA, CFTe

Prime Minister has met with some of the world’s largest asset managers, explaining the government’s privatization plans and promoting the Egyptian economy. The local FX rate weakened yesterday to 18.74/USD.  Projected Inflation figures for May are12.8% YoY (+0.5% MoM), as increases in food items slow down. Ministry of Trade has extended by three months its March ban on exports of wheat, flour, cor...

- Market Overview - AMOC - CCAP - OIH - OFH - MFPC - ORAS - SKPC - EGCH - ATLC - Prepared by: Mayada Amin - CETA, CFTe

The global economy may be headed for years of stagflation, the World Bank warned, slashing its 2022 global growth forecast to 2.9% from January’s 4.1%. The World Bank raised its forecast for Egypt's economic growth for the current year to 6.1%, up from 5.9% in its previous forecast, while growth in 2022/23 was revised down by 0.7 ppt to record 4.8%. Prime Minister is reviewing a draft strateg...

- Market Overview - COMI - ABUK - CCAP - HELI - MFPC - EKHO - MNHD - EGCH - RACC - Prepared by: Mayada Amin - CETA, CFTe

Net International Reserves registered at USD35.495 billion end of May, down from USD 37.123 billion in April, due to external debt repayments of USD2 billion. Madbouly asked the Finance Ministry to prepare a timeline for stake sales in state-owned firms, and the Planning Ministry to produce a list of assets from which the government will fully exit, or offer stakes. The government will likely look...

- Market Overview - ESRS - TMGH - SWDY - ACGC - EGCH - EGTS - SUGR - prepared by: Mayada Amin -CETA, CFTe

GAFI's CEO started a promotional mission to Qatar to discuss pumping new Qatari investments into the Egyptian market. ESRS released solid 1Q22 Net Income after Minority Interest stood at EGP759 million in 1Q22 (+3% YoY, -27% QoQ). The YoY increase in earnings came despite booking EGP1.1 billion of forex losses.  ESRS is trading at FY22e P/E of 2.7x and EV/EBITDA of 3.3x.  IRAX released solid...

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

Inflation for May| We expect annual urban inflation to come in at 12.8% in May, as increases in the food items slowed down significantly during the month. Egypt's PMI hit 47.0 in May, up slightly from 46.9 in April, but still below the neutral point of 50.  The International Islamic Trade Finance Corporation (ITFC) has raised the ceiling for its financing agreement with Egypt to USD6 billion...

- Market Overview - HRHO - ESRS - TMGH - Prepared by: Mayada Amin- CETA, CFTe

Ministry of Finance raised the customs exchange rate to EGP18.64 from EGP17.00, starting June 1st. State grain buyer GASC has purchased 465,000 tons of wheat for USD480/ton including freight. Cabinet discussed several plans to raise institutional investor proportion and public institutional investors' participation in the Egyptian Equity Market. Cabinet approved a number of amendments to the...

- Market Overview - EGX30 - EGX70 - Prepared by: Mayada Amin - CETA, CFTe

PHDC achieved strong 1Q22 sales of EGP5.5 billion, up 62.4% y/y. Net profit in 1Q22 grew 44.1% y/y to EGP295.0 million.  We remind you that PHDC is targeting FY22 sales of over EGP20.0 billion. PHDC is also planning a EGP1.5-2.0 billion securitization in 4Q22. EFIC released positive 1Q22 consolidated bottom line at EGP236 million (+495% YoY). Higher margins was the reason. EFIC is currently tradin...

- Market Overview - AMOC - ESRS - MNHD - RMDA - SKPC - EFIC - EGCH - EHDR - EMFD - Prepared by: Mayada Amin, CETA, CFTe

MSCI EM Index rebalancing execution will be today, where COMI’s FF goes down, HRHO replaces FWRY in the standard index, EFIH and FWRY get included in Small Cap Index, and PHDC and HELI get excluded.   NBE and BM stop offering the 18% one-year CDs, after collecting EGP750 billion into the product and offer a three-year replacement for 14%.  The Financial Supervisory Authority plans to bring the mar...

- Market Overview - AMOC - ADIB - ESRS - ETEL - HRHO - MFPC - TMGH - Prepared by: Mayada Amin - CETA, CFTe

ADQ will invest USD 10 bn in industrial projects in Egypt, the UAE, and Jordan as part of a partnership signed in Abu Dhabi yesterday, within different sectors including agriculture, pharmaceuticals, minerals, petrochemicals, and textiles. The state plans to sell a 20-25% stake in Egypt Aluminum (EGAL) to a strategic investor. The transaction will take place through a capital increase.  The minist...

- Market Overview - ABUK - MFPC - HRHO - EAST - EHDR - LCSW - Prepared by: Mayada Amin - CETA, CFTe

Moody's has affirmed Egypt's credit rating at B2 and changed the outlook to negative from stable, reflecting the rising risks of a significant narrowing in the foreign exchange reserve buffer to meet upcoming external debt service payments. The Prime Minister is leading a delegation of ministers and senior officials to the Emirati capital where they will launch a new industrial partnersh...