Al Ahly Pharos

·         Fitch Rating said that Egyptian banks’ Viability Ratings (VRs) could come under pressure, if the banks’ foreign assets continue to drop. ·         A group of Gulf banks completed arranging a USD3 billion joint loan for Egypt, equally divided between Islamic and green financing, for a period of 3 years. ·         Egyptian Tax Authority said that a draft law approved by Cabinet imposes a l...

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

Egypt plans to develop industrial mining cities for the extraction of gold, copper, and phosphate.  The Minster of Petroleum said that Egypt is benefiting from the additional high returns from the export of LNG, which were not taken into account in the budget projections, creating a relative compensation for the increase in oil prices. The trade deficit decreased by 12.5% ​​during October 2021 to...

- Market Overview - COMI - ABUK - FWRY - MTIE - CERA - Prepared by: Mayada Amin - CETA, CFTe

-The World Bank upgrades its forecasts for Egypt's GDP growth to 5.5% in FY2021/22 -Bloomberg: Investors expect the Egyptian bond market to deliver more gains this year as it offers attractive real interest rates -Federal Reserve Chairman Jerome Powell said that the US economy is both healthy enough and in need of tighter monetary policy  -FWRY announced providing different e-payment solution...

- Market Overview - EAST - ABUK - EXPA - FWRY - OFH - ETRS - MFPC - Prepared by: Mayada Amin - CETA, CFTe

·         Core inflation inched up at 5.97% YoY in December up from 5.8% in November ·         The Central Bank of Egypt issued a circular yesterday outlining the conditions and procedures for granting "emergency liquidity support " to banks operating in Egypt ·         EXPA aims to achieve a net profit of EGP917 million in 2022, compared to a target profit of EGP473 million in 2021 ·   ...

- Market Overview - AMOC - DOMT - ORWE - ATLC - Prepared by: Mayada Amin - CETA, CFTe

-EFIH Initiation of Coverage| We arrived at a DCF valuation for EFIH of EGP42.08 billion, implying a FV post capital increase of EGP23.67 per share, an upside of 20.6%, with an overweight recommendation. EFIH is currently trading at 2022f P/E of 43.7x, and EV/EBITDA of 33.9x, at a discount of global peer average of 59.4x and 33.0x; respectively.  -Customs Authority will begin a three-month trial e...

- Market Overview - ABUK - ETEL - PHDC - EGAL - EXPA - UEGC - Prepared by: Mayada Amin - CETA, CFTe

·         Inflation figures for December 2021 will be released by CAPMAS tomorrow morning. We expect urban headline inflation to record c.6% YoY, as some food items' prices cool down relatively, but favorable base effect starts to fade away. ·         Net International Reserves inched up by about USD26 million in December 2021, due to increments in foreign currencies and gold components. ·   ...

The Cabinet has discussed the legislative amendments proposed on the capital gains tax with some government and industry stakeholders including FRA and ECMA heads. The Solar Energy Development Association (SEDA) are lobbying to scrap a newly-imposed 5% import tariff on solar panels, requesting that the Ministry of Electricity cancel the duty which was introduced in November. The exports of the che...

- Market Overview - MTIE - FWRY - TMGH - HELI - CCAP - AMOC - DOMT - ETEL -Prepared by: Mayada Amin - CETA, CFTe

- Market Overview - ABUK - OFH - AMOC - EGTS - RACC - POUL - Prepared by: Mayada Amin CETA, CFTe

Purchasing Managers Index rose to 49 in December, up from 48.7 in November. The climb was due to lower rates of decline in output and new orders,an improvement in tourism activity, and a sharp rise in export orders that was the strongest since February. Seven international companies were awarded exploration and production licenses for eight oil and gas concessions in the Mediterranean, the Western...

- Market Overview - ACAMD - ALUM - ATQA - EPCO - MCQE - OLFI - RTVC - Prepared by: Mayada Amin - CETA , CFTe

Suez Canal revenues increased by 12.8% YoY during 2021, reaching a record USD6.3 billion. Export revenues grew to record levels as well, amounting to USD31 billion in 2021. The government intends to build 60 wheat silos in partnership with the private sector, each with a capacity of 60,000 tons. The budget's overall deficit increased to EGP266.95 billion, about 3.7% of GDP during 5MFY2021/22,...

- Market Overview - COMI - EAST - ESRS - SKPC - GDWA - SWDY - HELI -PHDC -EGTS - Prepared by: Mayada Amin - CETA, CFTe

The Ministry of Supply is set to decide the price of subsidized bread by end of March, according to the government’s plans to increase the price of subsidized bread which is currently sold for EGP 0.05 per loaf but costs EGP 0.6-0.65 to produce. The government is considering restructuring the water consumption segments, the accounting categories for customers, and the method of accounting, both fo...

The price of subsidized sugar will increase to EGP10.5 per kg Starting January 2022, up from EGP8.50 currently (23.5%), Supply Minister Ali Moselhy said. Foreign investments in Egyptian T-bills declined by about 8% MoM in October to reach EGP347.6 billion (USD22.14 billion) down from EGP378.2 billion (USD24.1 billion) in September. Egypt expects to import 5.3 million tons of wheat in 2022, 4% less...

- Market Overview  - ESRS - ASPI - GGCC - MTIE - Prepared by: Mayada Amin- CETA, CFTe

- Market Overview - FWRY - MFPC - MTIE - PHDC - AIH - ABUK - SVCE - Prepared by: Mayada Amin - CETA, CFTe

-El Sisi gives instructions to move to cash subsidies instead of handing over subsidized fertilizers to peasants. Impact discussed in e-mail note. Beneficiaries: ABUK, MFPC, AlexFert (EKHOA), EFIH. -HELI announced that it has agreed to enter into a co-development agreement with Mountain View for the Heliopark land plot, which is 7.1 mn sqm. HELI stated that total revenues for the company from the...

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

The Industrial Development Authority intends to complete the procedures for licensing new cigarettes producers, despite the withdrawal of 3 companies in protest of the conditions. IDA is to complete bidding procedures and hold a technical clearance session on Sunday, January 23, and conclude the bid on April 3, 2022. EGAL has signed with a German contractor an agreement to provide consultancy serv...