Al Ahly Pharos

- Market Overview - COMI - ABUK - ASPI - CLHO - EGTS - SWDY - OIH - prepared by: Mayada Amin - CETA, CFTe

Prime Minister: Egypt is not immune from the squeeze on commodities, rising shipping costs and higher input costs seen worldwide. The government will set out a clear future direction on subsidies when preparing next fiscal year’s state budget in March 2022. Egypt aims to increase Egyptian exports by 15% annually, to reach about USD100 billion. El Sisi inaugurates first phase (100k feddans) of the...

- Market Overview  - COMI - AMOC - AUTO - CLHO - EGTS - MNHD - ATQA - Prepared by: Mayada Amin - CETA, CFTe

The Central Bank decided to extend the deadline for the precautionary decisions to face the repercussions of the pandemic until June 2022 exempting banking clients from all fees and commissions. The decisions included extending the duration of the two initiatives to support tourism until December 2022. The Ministry of Petroleum signed an exploration agreement with the Italian "Eni" with...

Market Overview  - PHDC - ASCM - EGAS - HELI - FWRY - AMOC -  CCAP - MFPC -prepared by: Mayada Amin - CETA, CFTe

FDA authorized Pfizer’s at-home pill, which was proven to be effective against the Omicron variant. Such news should reduce Omicron-induced volatility in global markets. President El-Sisi stated the government is to limit the number of beneficiaries from ration cards.  CCAP’s Egyptian Refining Company (ERC) is close to reaching a preliminary debt restructuring agreement for its USD2.35 bn debt.  A...

- Market Overview - COMI - ABUK - MCQE - ARCC - SPMD - CSAG - ETRS - ISMA - HELI - FWRY - Prepared by: Mayada Amin - CETA, CFTe

Remittances from Egyptians abroad were up 1.5% YoY to USD 8.1 bn in 1QFY21/22. September was a slow month, with remittances dipping 3% YoY to USD 2.6 bn.  The private sector will be given a six-week grace, until mid-February from the new private-sector minimum wage requirement (EGP2,400). Gas and electricity prices have hit new record highs in Europe, threatening economic recovery and putting indu...

- Market overview - ABUK - EKHO - ATLC - FWRY - Prepared by: Mayada Amin - CETA, CFTe

IDHC (FV: EGP22, OW) signed a sale and purchase agreement to acquire 50% of Islamabad Diagnostic Centre for a total consideration of USD72.35 million (EGP1.90/IDHC share). The transaction is expected to close in 1H2022. IDC contributes around 15% to the combined company’s consolidated revenue and consolidated EBITDA. Transaction should not impact dividend distribution plans for IDHC in 2022 and 20...

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

 Suez Canal achieved revenues of USD6 billion from January until the first half of December 2021. Egypt might face a higher wheat import bill as Russia is considering imposing higher export tariffs if wheat prices reach USD375/ton, with a bigger hike proposed if prices reach USD400/ton. CLHO’s BoD approved MCI Capital’s offer price to acquire up to a 26% stake for EGP5.00/share; Shareholders have...

- Market Overview - COMI - HELI - HRHO -EKHO - EMFD -CIEB - ATQA - UASG - Prepared by: Mayada Amin - CETA , CFTe

The CBE decided to keep interest rates unchanged at 8.25% and 9.25% for overnight deposit and lending rates respectively, citing inflation pattern, pick-up in domestic economic activity and continuation of global recovery from COVID-19. Quantities transported from natural gas reached 66.7 billion cubic meters, of which 62.1 billion cubic meters for local market and 4.6 billion cubic meters for exp...

Fed announced it will speed up the taper of its asset-purchase program; Indicated it sees as many as three rate hikes in 2022, of 25 bps each Expect MPC to keep rates unchanged, as real yields on treasuries are still competitive, inflation is still within the CBE's target A new plan to develop exports to Africa will be announced by mid-January 2022 from the current USD3.97 bn Snacks, crackers...

- Market overview - ORAS - EMFD - ESRS - HELI - ORHD - RMDA - Prepared by: Mayada Amin, CETA - CFTe

Egypt’s economy is expected to grow at c.6-7% in 2Q21/22 and end FY21/22 with a GDP growth rate of 5.5% to 5.7% Suez Canal recorded the largest monthly revenues and net tonnage in November, of USD571.3 million and 113.5 million tons, respectively Egypt and Russia are in talks to establish a joint company to supply grains to Egypt and improve its food security Financially distressed SMEs will be gi...

- Market Overview - EGTS - ISPH - MTIE - FAIT - MCQE - RACC -PRDC - Prepared by: Mayada Amin - CETA, CFTe

New tax hikes and development fees got the green light from the House Planning and Budgeting Committee The government made a number of amendments to the VAT, pending Parliament approval The US Federal Reserve’s Open Market Committee meets today and tomorrow, widely expected to announce it will taper its bond-buying program EAST inked an agreement to jointly manufacture Davidoff Evolve cigarettes;...

- Market Overview - COMI - EMFD - CCAP - ORAS -ALCN - OLFI - AUTO -Prepared by: Mayada Amin -CETA, CFTe

Egypt is expected to join the JP Morgan bond index for emerging markets by the end of January 2022 Egypt has emerged as one of Turkey’s most important LNG suppliers so far in 4Q2021, shipping seven cargoes since the beginning of October IRAX BoD announced its approval of the acquisition of 18% of Egyptian Steel for EGP2.5 bn; Transaction will be financed from internal resources, with 50% of the va...

- Market Overview - AMOC - AUTO - ISPH - SKPC - CICH - EGCH - MICH - SWDY - Prepared by: Mayada Amin - CETA, CFTe

MPC Watch| CBE is to keep rates unchanged since inflation rates are still within the target, real interest rates are still attractive, and there is no urge to jump to rate hikes which are costly to the economy The annual core inflation rate, which excludes volatile and regulated items, rose to 5.8% last November, compared to 5.2% in October 2021 MoF raised USD3 billion loan in green and Sharia-com...

- Market Overview - AMOC - ESRS - RMDA - SWDY Prepared by: Mayada Amin - CETA, CFTe

Economists expect the US Federal Reserve to scale back its bond-buying program to begin raising interest rates earlier than expected (March 2022) Fitch Ratings: "Egypt is highly dependent on external financing, exposing it to global liquidity and monetary conditions, which are becoming less accommodative" The restructuring of two army-affiliated companies is ongoing (“Safi” and “Wataneya...