Al Ahly Pharos

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

Real GDP growth rate recorded in 9M FY21/22 was 7.8%, recording 5.4% in 3QFY2021/22, with expectations to reach 6.2% in FY21/22. Prime Minister pledged fresh incentives to draw foreign investors into the country for projects including data centers, LNG terminals, telecom towers, oil and gas pipelines, and wind plants. CBE data showed that external debt amounted to USD145.5 billion at the end of De...

- Market Overview - COMI - EKHO - PHDC - TMGH - MNHD - ABUK - Prepared by: Mayada Amin - CETA, CFTe

International Islamic Trade Finance Corporation will help Egypt deal with rising wheat prices with a USD3 billion increase in financing. Egypt hopes to finalize a fresh assistance program with the IMF within two months, Discussions are to maintain the momentum of growth above 5%. Minister of Petroleum said that Egypt will launch a new bid for oil and gas exploration in the 2H2022.  SKPC released p...

- Market Overview - ADIB - EAST - HRHO - MNHD - MFPC - EFIC - ARAB - EDBM - Prepared by: Mayada Amin - CETA, CFTe

Egyptian Stock Exchange board is discussing an action plan with market stakeholders to revitalize the market. Minister of Finance said that the government will issue the first sovereign Sukuk before the end of the current fiscal year FY2021/22. Minister of Planning expected that economic growth will exceed 5% during 3QFY2021/22, and the full-year growth to be close to 6%. Eight international auto...

Market Overview - COMI - ARAB - ATLC - DSCW - EHDR - KABO - Prepared by: Mayada Amin - CETA, CFTe

 Urea Egypt price index declined to USD720/ton compared to 1Q22 average of USD843/ton. ORAS announces that Suez Industrial Development Company (SIDC), a majority-owned subsidiary, signed an agreement with Al Ahly Capital Holding to jointly develop a 2.2 million square meter industrial park in Abu Rawash. SIDC will be the lead developer of the industrial park. SIDC will also own 25% of the project...

- Market Overview - COMI - EKHO - MFPC - ADIB - CIRA - EFIC - ARAB - Prepared by: Mayada Amin - CETA, CFTe

The CBE hiked rates by 200 basis points, in line with our expectations. Fitch Ratings expected that the net foreign assets of Egyptian banks will continue to recover after the depreciation of the pound, and high interest rates will support the profitability of banks.  The European Central Bank may raise interest rates in July to tackle inflation, despite rising concerns about a recession in the eu...

- Market Overview - ALCN - EHDR - ETRS - UASG - EXPA - CIEB - EAST -  ESRS - ETEL - MTIE - Prepared by: Mayada Amin - CETA, CFTe

The MPC will meet today to decide on policy rates. We expect a hike of as much as 200bps, as the CBE keeps an eye on the inflation round-two effect and shrinking negative real interest rates. CBE Governor: Negotiations between Egypt and the IMF for a fresh assistance program are focusing on a limited amount of funding. The March devaluation of the EGP resulted in a 30% increase in foreign exchange...

- Market Overview - COMI - ABUK - ADIB - EKHO - MTIE - ACGC - ETRS - UASG - CIEB - Prepared by: Mayada Amin- CETA, CFTe

Government Ownership Map is released.   Minister of Petroleum expected the value of investments in the energy sector in Egypt during the current fiscal year to range between USD7-8 billion.  Egypt could receive around 7.5 mn tourists this year, since the number of German tourists visiting the country is likely to rise this year, helping offset the loss of Russian visitors.  The National Council fo...

- Market overview - ESRS - CCAP - AMOC - EFID - ETRS - DOMT - Prepared by:  Mayada Amin - CETA, CFTe

Natural Gas Prices Not to Be Raised for Industrial Sector, ESRS is Sparkling. ESRS is perceived to be the stock that is most reactive to natural gas pricing news. ESRS is a key beneficiary of the current spreads between steel and raw material prices, in addition to the weakness in the local exchange rate. Provided that the government does not enforce one more round of lower prices on building mate...

- Market Overview - COMI - HRHO - JUFO - EFID - ACAMD - ETRS Prepared by: Mayada Amin - CETA, CFTe

Prime Minister Conference discussed five pillars: (1) fostering private sector role and industrial sector to increase local production, (2) a program to increase the share of private sector in the state-owned assets at USD10 billion annually for four years, (3) announcing a four-year plan to maintain a downward trajectory of public debt ratio to GDP and budget deficit, (4) a comprehensive vision t...

- Market overview - ABUK - FWRY - MNHD - ADIB - AMOC - CCAP - COMI - HRHO - RMDA - Prepared by: Mayada Amin - CETA, CFTe

MSCI Egypt Index Changes: HRHO replaced FWRY in the Standard Index; EFIH and FWRY got included in Small Cap Index; PHDC and HELI have been excluded from the Small Cap Index. The execution date is May 31.  A press conference to announce new details of the state’s response to the economic turmoil fallout from Russia’s war in Ukraine will take place this week. Might unlock IMF funding.   The EGP cont...

- Market Overview - COMI - JUFO - SPMD - SKPC - ABUK - AUTO - FWRY - MTIE - Prepared by : Mayada Amin - CETA, CFTe

MSCI EM Index rebalancing announcement will take place tonight, with expectations, based on FF market caps, that HRHO will replace FWRY within the standard index and COMI's FF weight will go down to 75%, from 85%. The press conference to announce new details of the state’s response to the economic turmoil fallout from Russia’s war in Ukraine will take place early next week. Might unlock IMF f...

- Market Overview - COMI - ABUK - EFIH - EKHO - HELI - HRHO - ATLC - Prepared by: Mayada Amin - CETA, CFTE

Production inputs and raw materials will be exempt from a CBE rule handed down in February that has required the vast majority of importers to use letters of credit (L/Cs) to cover imports. Urban inflation recorded 13.1% YoY in April, higher than our expectations of 11.4% for the month; We expect the CBE to raise interest rates by 200bps in its upcoming meeting on 19 May.  Egypt is seeking USD2.48...

- Market Overview - COMI - EKHO - ESRS - FWRY - ABUK - HELI - MNHD - ORAS - ORHD - Prepared by: Mayada Amin - CETA, CFTe