Al Ahly Pharos

Undisclosed foreign institutions have acquired a majority stake in Global Corp for Financial Services, in a transaction worth EGP 914.7 million. Transaction at 9x P/E and 2.6x P/B.  Implications on the valuation for CICH, GB Capital and ATLC means FV of EGP 8.91, EGP 10.90, and EGP10.45, respectively. PHAR topped other pharma players for market share in volumes sold during 1Q22, to record 52.8 mil...

- Market Overview - COMI - ABUK - ORAS - RMDA - HRHO - EMFD - JUFO - Prepared by: Mayada Amin - CETA, CFTe

PMI improved slightly in April to 46.9 up from March's 46.5, but still remained below the 50.0 threshold that separates growth from contraction, as non-oil private sector activity contracted as the Ukraine war added to cost pressures. Net International Reserves inched up to USD 37.12 billion at the end of April, from USD 37.08 billion a month earlier. The details of the FY2022/23 budget inclu...

- Market Overview - COMI - ABUK - ADIB - AUTO - CCAP - EKHO - ESRS - ETEL - HELI - MFPC - Prepared by: Mayada Amin - CETA, CFTe

The Fed raised its benchmark interest rate by 0.5%, the largest since 2000 as a response to inflation pressures. The Fed also indicated it will begin reducing asset holdings on its balance sheet in June. Ministry of Finance decided to raise the customs dollar rate to EGP17 in May, up from EGP16 in the previous month. Minister of Finance said that the Ministry expects achieving a primary surplus of...

- Market overview  - COMI - AMOC - ESRS - EMFD - MFPC - SKPC - SWDY - MNHD -,prepared by: Mayada Amin - CETA - CFTe

IMF is currently in the technical discussions phase with the Egyptian authorities in terms of the anticipated loan program. IMF’s Director of the Middle East and Central Asia Department said that the level of Egypt’s external debt is not alarmingly high, noting that the main bulk of the public debt is in the local currency, but work should be done to reduce its rates gradually. Cabinet approved th...

- Market Overview  - COMI - EAST - EKHO - HRHO - AMOC - MFPC - ORAS - SKPC - prepared by: Mayada Amin - CETA, CFTe

El-Sisi issued instructions to the government to support and stimulate the economy, through higher private sector participation in state-owned assets, the listing of companies owned by the armed forces on the stock exchange before the end of this year, reactivating the government IPO program Government wants state institutional investors to pour more funds into EGX, particularly through pension an...

- Market Overview  - ABUK - ADIB - CLHO - COMI - ETEL - HRHO - RMDA  - SKPC - prepared by: Mayada Amin - CETA, CFTe

Standard and Poor’s (S&P) has affirmed Egypt’s long and short-term foreign and local currency sovereign credit ratings at B/B, supported by significant external support.   Fitch affirmed Egypt rating at 'B+'; Outlook Stable, backed by the "recent record of fiscal and economic reforms, the large economy with robust growth, and strong support from bilateral and multilateral partne...

- Market Overview  - ABUK - SKPC - EGCH - HRHO - prepared by: Mayada Amin - CETA, CFTe

IMF: Egypt is taking several clear and specific steps to restore economic balance, and a program is being prepared that takes into account social protection measures while completing reforms. The government will announce by mid-May the “State Ownership Policy Document,” as the national strategy aimed at expanding private sector participation in the economy.  Prime Minister reviewed the proposed st...

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

The IMF now expects the Egyptian economy to expand at a 5.9% clip in FY 2021-2022, and 5.0% in FY 2022-2023. The IMF pointed out in one of its meetings that Egypt has obtained a "rapid financing", with no further details. The IMF revised its projection for global growth from an estimated 6.1% in 2021 to 3.6% in both 2022 and 2023. Minister of Finance formed a committee headed by the Mini...

- Market Overview  - COMI - ESRS - FWRY - HELI  - SKPC  - SWDY  - CCAP  - Prepared by Mayada Amin - CETA, CFTe 

The World Bank lowered its annual global growth forecast for 2022 down from 4.1% to 3.2%, citing the impact that Russia’s invasion of Ukraine. Egypt's external debt has increased to USD145.5 billion in December 2021, up from USD137.4 billion in September (5.9% QoQ increase). Saudi Shura Council approved a draft agreement between the governments of Saudi Arabia and Egypt regarding the investme...

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

The decision to temporarily suspend some international companies from the list of companies approved to export to Egypt was due to their failure to comply with factory registration requirements. No Saudi products would be blocked from entering the country. Exporters in the fourth phase of the export-support program will see only 8% deducted from subsidies on shipments made starting July 2021, due...

- Market Overview  - COMI - EAST - EFIH - CLHO - FWRY - ORAS - prepared by: Mayada Amin - CETA, CFTe

The Balance of Payments (BoP) for 2Q2021/22:  Overall balance recorded a deficit of USD326 million; Current account deficit was slightly down to USD3.8 billion, as trade deficit went down to USD10.6 billion, mainly as oil exports went up to USD5 billion up from USD2.9 billion; Tourism recorded the highest revenues at USD3 billion, FDI recorded the same level of USD1.6, net portfolio investment rec...

- Market Overview  - ESRS - ETEL - COMI - HRHO - MFPC - ORAS  - prepared by: Mayada Amin - CETA, CFTe

FAB withdrew VTO on HRHO EAST declared to participate in the capital of the United Tobacco Company with 24% of the company’s capital amounting to EGP100 mn. United Company will solely bear the total cost of the value of the new license, without EAST bearing any costs in this regard. United Company will lease the building and the current production lines dedicated to the production of Phillip Morri...

- Market Overview  - COMI - FWRY - TMGH - ABUK  - CCAP - CLHO - AUTO - EKHO - Prepared by: Mayada Amin - CETA, CFTe

ADQ acquired state-owned stakes in five EGX-listed companies yesterday for USD1.8 bn. The Prime Minister gave instructions to develop a strategy to recover from the repercussions of the global crisis. Ministry of Finance approved the Tax Authority’s proposal to not disburse export rebates to projects operating under the free zone status. The EGP moved against the USD in local banks yesterday to re...