Al Ahly Pharos

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

The EGP moved against the USD in local banks yesterday to record 18.37-18.47/USD. The General Authority for Supply Commodities (GASC) set a "limited tender" for the first time in years, to buy an unspecified amount of wheat from only European import origins.  The Egyptian Businessmen Association is preparing a proposal to open accounts in Russian Rubles for Egyptian importers and exporte...

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

-Annual urban inflation in March recorded 10.5% YoY up from 8.8% in February, lower than our projected 11.3%.  -The recently recorded inflation rates and inflation outlook room for another 100 bps rate hike.  Being aware of the costs of high interest rates on the real and fiscal sides at this stage, we believe the CBE will wait and monitor the markets’ reaction to March’s 100 bps hike, before rais...

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

Net International Reserves dropped to USD37.08 billion in March 2022 down from USD40.99 billion in February, for "covering substantial foreign investor outflows, ensuring availability of imported strategic goods, and repaying external debt obligations." Government is still aiming to maintain a primary surplus of 1.3%, the overall budget deficit at 6.2%, and the debt-to-GDP ratio to be le...

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

The EU will provide EUR100 million to support Egypt in response to the rise in food prices due to Russia's war on Ukraine. The Cabinet approved increases in 5 grants from the United States with a total value of USD74.6 million to reach a total of USD569.4 million, in the sectors of health, population, education, higher education, and agriculture. The General Authority for Investment and Free...

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

Inflation forecast for March 2022: We expect annual urban inflation to record 11.3% YoY, and 2.9% MoM, on surging food items, tobacco, housing and fuel, and miscellaneous goods & services after EGP depreciation and the higher impact of global inflation. Foreign exchange resources available at Egyptian banks improved on the back of the demand for the 18% CDs offered by NBE and Banque Misr, whic...

- Market Overview  - COMI - EAST - MTIE - SWDY - SKPC - HELI - MNHD - ATQA - ATLC - prepared by: Mayada Amin, -CETA, CFTe

Egypt PMI drops to 21-month low in March, to 46.5, down from 48.1 in February. Activity and new orders decline sharply as demand stutters. Ukraine war and pound devaluation drive input prices higher. Business confidence falls to record low amid inflation fears.  Saudi Arabia’s sovereign wealth fund could take stakes in military-owned Wataniya Petroleum and the three Siemens-built power plants as p...

- Market overview  - COMI - CCAP - ABUK - ETEL - HELI - HRHO - MNHD - ORAS  - Prepared by: Mayada Amin - CETA, CFTe

BINV’s BOD has accepted a binding offer for the sale of its entire stake (44.7%) in Giza Systems to a subsidiary of STC; The offer values 100% of Giza Systems at an Enterprise Value of USD145 million; Transaction has an implied EV/EBITDA22 of 5.8x and P/E22 of 9.0x; BINV is expected to distribute dividends post the exit Industrial Development Authority decided to have the tender for the new cigare...

- Market Overview  - ABUK - ADIB - CCAP - COMI - EAST - ESRS - ETEL - FWRY - HELI - HRHO - ORAS  - SWDY  - Prepared by: Mayada Amin - CETA, CFTe

1Q2022 Results Expectations| Aaggregated profits will surge 30% YoY, and remain stable QoQ; For FY2022, aggregated profits will rise 26% YoY; Stocks that will witness a shift in performance: EGCH, EGAL, ABUK, AMOC, ARCC, DOMT, DSCW, AMER, MNHD, EFIH Finance Ministry could set oil prices at USD 80-85 a barrel in the FY 2022-2023 budget Minister of Finance noted that Egypt is preparing to issue the...

- Market Overview - COMI - ADIB - EKHO - ETEL - ORWE - SWDY - SPMD - Prepared by: Mayada Amin - CETA, CFTe

Saudi Arabia deposited USD5 billion in the CBE, with one-year maturity that could be rolled over Saudi Sovereign Wealth Fund is looking to invest USD 10 bn in Egypt’s healthcare, education, agriculture, and financial services sectors IMF head has welcomed Egypt’s recent economic measures that tackle the balance of payments shock Cabinet reviewed the highlights of its strategy to encourage private...

- Market Overview  - COMI - ADIB - SKPC - ESRS - ETEL - HELI - HRHO - FWRY - ORAS - Prepared by: Mayada Amin - CETA, CFTe

Qatar plans to invest some USD 5 bn in Egypt, in addition to the USD 2 bn that Abu Dhabi’s ADQ has pledged; Egypt might get USD 3 bn from the Saudi Public Investment Fund and USD 2 bn from Kuwait House of Representatives approved two financing agreements with the International Bank for Reconstruction and Development, and the Asian Infrastructure Investment Bank worth USD720 million Suez Canal Auth...

Market Overview  COMI HRHO EKHO

The government has lowered real GDP growth outlook for FY21/22 to 5.7% and for FY22/23 to 5.5% Government signed a 40-year loan agreement with the French government for EUR776.9 million to fund the 55 new trains for Cairo Metro Line 1  France will ensure that Egypt gets the wheat it needs in the coming months as the war in Ukraine creates supply risks  Monthly fuel import bill approached USD1.05 b...

- Market Overview - COMI - EFIH - ETEL - EMFD - HELI - ABUK - ADIB - AMOC -Prepared by: Mayada Amin - CETA, CFTe

Egypt's budget deficit rose to 5.15% of GDP in 8MFY21/22, compared to 5% in 8MFY20/21 The government identified 131 imported products that have the potential to be manufactured locally, to reduce Egypt's import bill EGX was negatively affected by news on ban of importation of some products like fully manufactured cars and cell phones; Companies noted that there is no ban, but the new pro...

- Market Overview - COMI - EAST - EFIH - ORWE - SKPC - Prepared by: Mayada Amin - CETA, CFTe