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Al Ahly Pharos

Welcome to our daily podcast featuring the day's top news commentary and technical recommendations delivered to you before the opening bells of the Egyptian Stock Exchange (EGX).Alongside our morning podcasts, we will be publishing a collection of episodes presenting indepth analysis and insights on EGX's equities, all brought to you by Al Ahly Pharos.

Tracks

Technical Analysis
- Market Overview- ABUK- HRHO- MFPC- MNHD- SWDY -POUL- Prepared by: Mayada Amin- CETA, CFTe 
02:09 09/26/2022
Pre-Trading Thoughts
The Madbouly government expects to raise as much as USD 6 bn by selling stakes in state-owned assets by mid-2023, Planning Minister said. Egypt's liquefied natural gas (LNG) exports reached USD 8 bn in FY21/22/. The government will target USD 8.5–10 bn in natural gas revenues in FY22/23.Egypt is targeting digital exports of USD5.5 billion in FY22/23 (+13% YoY).The Ministry of Electricity is looking at the new electricity tariffs and is developing scenarios for the deferred price movements, in light of the exchange rate and the price of natural gas.GB Auto is aiming to start production in their new factory in Sadat City before the end of 2023. GB Auto is offering its customers who booked unavailable passenger cars a replacement option or refunds.Al Nasr Automotive is comparing between two partnerships (Indian & Japanese) offers to manufacture the electric TukTuk with an annual capacity of 50 thousand units annually.Aldar Properties is looking at the New Administrative Capital for potential investment opportunities.Saudi Jamjoom Pharma will open a pharmaceutical factory in Egypt with a value of EGP1.0 billion at the end of the year.FRA highlighted that microfinance lending has reached EGP3.33 billion in the first half of 2022, reflecting an annual increase of 45.3%. Consumer finance increased by 10.18% YoY, to reach EGP16.43 billion by the end of June 2022.ABUK approved a DPS of EGP3.00/share (DY of 12.3%). The first installment of EGP1.00/share with a distribution date of 20/10/2022. The second installment of EGP2.00/share with a distribution date of 29/12/2022.AMOC approved a DPS of EGP0.55/share (DY 13.4%). The first installment of EGP0.30/share with a distribution date of 20/10/2022. The second installment of EGP0.25/share with a distribution date of 22/02/2023.RAKT intends to pump EGP700 million to renovate its production lines in Alexandria in FY22/23. The total investment cost of the renovation project is EGP1.5 billion.A Spanish investor joined the alliance of Madkour Group and Ocean Express, to manage and operate Damietta's dry port at an estimated cost of EGP2 billion. 
03:23 09/26/2022
Technical Analysis
- Market Overview- ABUK- AMOC- CCAP- FWRY- SKPC- ORAS- HELI- HDBK- Prepared by: Mayada Amin - CETA, CFTe
02:20 09/25/2022
Pre-Trading Thoughts
Matching our projections, MPC decided to keep rates unchanged.  The CBE also decided to increase the required reserve ratio to 18% from 14% on deposits held in local currency with a maturity of less than 3 years. The required reserve ratio on foreign currency deposits remains the same at 10%.  Positive impact on economy but banks will bear the cost. Banks with higher a higher deposit base whose maturity is less than 3 years and whose local currency deposit base is quite high will be more impacted by the decision. HDBK most impacted.Minister of Finance: It could take another month or two to finalize IMF funding. The size of the funding will only be decided in the final stages of negotiations. Egypt is looking to China and Japan for new avenues to raise foreign currency funding at a reasonable cost. Targeted funding is around USD500 million from each country. The government is also looking at the possibility of issuing a green Eurobond if market conditions allow.  The government is still looking to hedge against commodities but will wait for the markets to cool further.  The government has finalized its state ownership policy ahead of the economic conference that is being planned for the end of this month. EFIC intends to acquire 100 feddan land to build its new compound fertilizers project with an investment cost of USD500 million. Ministry of Transport received two offers to establish a new company to manage and transport goods via railways. The first was submitted by a consortium comprising ElSewedy-Al-Gharabli Contracting, while the second was submitted by Citadel Investment Group.OCDI is studying investment opportunities such as land acquisitions or company acquisitions and expects FY22 sales to exceed its EGP14.0 billion target.EMFD received bank approval for credit facilities of EGP2.0 billion.EGBE is planning to invest EGP2 bn in non-banking financial companies over the next 3 years, where the bank will acquire direct and indirect stakes in several companies in the sector.HRHO has invested USD50 million in startups since the beginning of 2022, through the venture capital accelerator EV-EFG.Around 11 new marinas for tourist yachts could be set up on the Mediterranean and Red Sea coasts.Suez Canal Economic Zone Authority expects the first phase of the EGP1.5 bn Abbas Berth to start operating in West Port Said port in October 2022. 
05:13 09/25/2022
Pre-Trading Thoughts
Federal Reserve raised interest rates by 75 bps, raising rates by 300 bps since the start of 2022. Egypt's MPC committee meets today, and we hope rates would be maintained, taking into account cost-push inflation, commodity prices cooling down, the fiscal deficit, and economic growth. Our projection comes against consensus expectations for a 200 bps rate hike. Sodic is currently not looking to acquire MNHD and is looking at other investment opportunities.HELI plans to invest EGP297.0 million in 2H22 and EGP403.0 million in FY23, and expects revenue of EGP328.0 million in 2H22 and EGP872.0 million in FY23. HELI is preparing to award the construction contract for the construction of the first phase of New Heliopolis, is planning to self-finance its projects in the coming period with no plans to resort to non-bank nor bank financing, HELI has not received acquisition offers on the company.MNHD launched units in Elect and Kinda in Taj City as part of the Cityscape Exhibition, offering payment plans of up to eight years.MNHD is studying investment opportunities on the North Coast, is planning a securitization issuance this year, is aiming to award EGP3.0 billion in construction contracts in FY22MNHD raised real estate unit selling prices by 5-7% during 2022.EAST released FY21/22 bottom line for the year recorded EGP4,030 mn compared to EGP4,280 mn in the previous period, down by 6% YoY. 4Q21/22 bottom line for the quarter came in the red, recording losses of EGP222 mn due to non-recurring tax settlement expenses, whose value is not disclosed yet.  EAST is currently trading at a FY22/23 P/E of 5.0x and an EV/EBITDA of 3.1x.EAST declared in a release the rise in two of their local brands' prices Pall Mall and Viceroy to reach EGP31/pack, effective yesterday.Expedition Investment executed the DOMT (FV: EGP6.00, OW) tender offer, acquiring a 32.9% stake (93.0 mn shares) for EGP 511.6 mn.BINV has approved Giza Systems’ fair value study which values Giza Systems at EGP4.90/BINV share. The offer values Giza Systems at EGP4.00-4.85/ BINV share, after relevant deductions. Pharmaceutical and nutritional supplement producing companies held a meeting yesterday to discuss the impact of the EDA decision regarding the cancellation of licenses for the production of nutritional supplements issued by the Food Safety Authority.Anderson values AMES at EGP821.8 million (EGP52.8 per share), 8% above Tawasol- LimeVest offer and 8.6% above Yas Holding offer. 
04:58 09/22/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
02:38 09/21/2022
Pre-Trading Thoughts
The Federal Reserve ends its policy meeting today and is widely expected to announce a third successive 75-bps hike.CBE eased some regulations governing importation:·       The Central Bank allows the use of the balances of the parent or affiliated company in foreign currencies in local banks for importation, provided that they are sold to the bank and the bank resells them to the subsidiary. ·       The parent company or the sister company abroad can provide a foreign currency loan to the subsidiary company in Egypt for periods of time from one to five years.·       Importation can utilize transfers from the accounts of partners or shareholders abroad resulting from dividend distributions abroad. ·       Importation can utilize company account balances in foreign currencies existing in local banks if the balances are in local banks until the end of workday on September 19, 2022 only.·       Accepting the proceeds of cash deposits of companies in foreign currencies resulting from export operations within specific neighboring countries (Libya - Syria - Sudan - Palestine - Iraq - Yemen) and using them in import operations.A delegation of Kuwaiti businessmen is scheduled to visit Egypt in October, to discuss investment opportunities.The Minister of Industry held a meeting with Sheikh Khalifa bin Jassim Al Thani, President of the Qatar Chamber of Commerce and Industry, to discuss joint economic cooperation.Incoming shipments of Russian fuel to Egypt have risen sharply in the past months as Moscow looks to alternative markets in the Middle East and Asia in light of Western sanctions.The government has postponed the rollout of the Advance Customs Information (ACI) customs system to air freight to until 1 January.A subsidiary of SWDY signed a new contract worth EGP418 million with PHAR for Eipico3 Biosimilar and Biological factory.EGAL’s board of directors proposed cash dividend distribution of EGP0.50/share, DYf 2.6%.Morocco applied anti-dumping fees on imported Egyptian carpets by 35%.Al-Nasr Motors is negotiating with an Indian company to produce electric tuk-tuks in Egypt.Companies across Alexandria, Beheira and Marsa Matrouh can now sign up to the eighth and final phase of the rollout of the government’s electronic invoicing platform. (EFIH)Payments platform PayTabs (51% owned by HRHO) has expanded its commerce platform Paymes (JV between PayTabs and HRHO) to Saudi Arabia and the UAE.Contact Financial Holding has closed an EGP 2 bn sukuk issuance and plans for EGP4 bn from three issuances during the year. The alliance of Lime Vest Partners Healthcare and Saudi Tawasul Holdings Company raised the offer price for the shares of Alexandria Medical Services from EGP47.67 to EGP49.00 per share.EKHO transferred the trading currency of 888,224 shares to the USD from the EGP, effective today.   
05:09 09/21/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
01:41 09/20/2022
Pre-Trading Thoughts
Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, said that the Fund’s negotiations with Egypt and Tunisia to obtain financing “are in continuous progress, and within a short period they will be completed.”Egypt and Danish shipping giant Maersk could cooperate on a USD 15 bn project to produce clean fuel for ships.HRHO’s CEO Karim Awad is extremely bullish on the countries in which HRHO operates and singled out the Gulf Cooperation Council countries. FRA approved the establishment of Aman Consumer Finance Company and Aman Securitization license.YAS Holding raised its bid to acquire the shares of Alexandria Medical Services Company to EGP48.62 per share.Weekly Commodities Update |           Last Price            WoW Change, %Brent, USD/bbl            88.6     -6.4%Diesel-HSFO Spread, USD/ton          562.1   -16.1%Egypt Urea, USD/ton  850.0   0.0%Polyethylene, USD/ton           1,150.0            4.5%Polypropylene, USD/ton         1,025.0            2.0%Steel/Iron Ore Spreads, USD/ton       456.5   0.0%LME Aluminum Cash Price, USD/ton            2,268.2            0.0%Egyptian Retail Cement, EGP/ton      1,445.0            -1.2%Steam Coal FOB Newcastle Australia, USD/ton            439.0   0.3%rude Palm Oil, USD/MT          802.9   1.0%SMP, USD/MT            3,575.0            1.4%
02:46 09/20/2022
Technical Analysis
Market Overview Prepared by: Mohamed  Othman- CETA, CFTe
01:53 09/19/2022
Pre-Trading Thoughts
The EGX is in serious talks with five or six private sector companies to list on the bourse.Egyptian shares suffered their biggest single-day loss since early July yesterday amid growing investor concerns about global growth.Egypt wants to generate USD8.5-10 bn in natural gas revenues in FY 2022-23, up from USD6.5 bn last year.Prime Minister yesterday signed off on amendments to the executive regulations of the PPP Act aimed at making it easier for private sector firms to partner with the government on key projects.Maha Capital, the investment arm of Qatar Investment Authority, signed an MoU with the Transport Ministry to explore investment in Egypt’s container terminals.The Ministry of Transport is currently in negotiations with financial institutions and international banks, in coordination with Siemens Mobility, to provide the necessary funding for the construction of the second and third lines of the high speed rail.The Suez Canal Authority will IPO the Canal Mooring & Lights Company on the EGX by the end of 2022. The Authority plans to offer 10-15% of the company to investors. According to the CBE, Egyptian banks recorded a net profit of EGP58.9 billion in 1H22.Chairman of the FRA issued a periodical on re-estimating the values of insured assets to ensure they reflect their market values to protect policyholders' rights, and to obligate companies to conduct periodical assessments to all insured assets. First Abu Dhabi Bank Egypt merging process with Bank Audi Egypt will be finalized soon during the third week of October 2022.Steel sales reached new highs in August to record 980K tons (+36% YoY, +104.9% MoM).MNHD signed a EGP1.5 billion construction MoU for the construction of 941 units in Shalya in Taj City.EMFD Board approved credit facility contracts and approved future expansions in the Soul project.MHOT AGM approved distributing EGP3.00/share cash dividends.
02:57 09/19/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
02:05 09/18/2022
Pre-Trading Thoughts
Remittances from Egyptians abroad fell 15% y-o-y and m-o-m in July to USD2.38 bn, from USD 2.8 bn.Egypt wants to attract USD7.7-8 bn in foreign investment into the oil and gas sector in the current fiscal year.Fees for most vessels crossing the Suez Canal will rise 15% starting 1 January 2023, except for dry bulk ships and cruise ships which will witness a 10% hike instead. The expected increase in revenue is USD600 million from the higher fees.The Ministry of Finance received the applications of 1.4k companies wishing to join the fifth phase of the “immediate reimbursement of export subsidies” initiative.The Qatar Investment Authority is interested to invest in the Egyptian tourism sector, and the hospitality sector in Egypt, whether in existing hotels, or through new investments.The Asian Infrastructure Investment Bank is considering lending the Abu Qir-Alexandria metro project, about EUR250 million.The government wants to attract private sector investment to state-owned Heliopolis Hospital under a wider plan to open up the healthcare sector to private sector players.EFIC stated in an EGX release that the new cabinet decisions of raising natural gas cost won't have a material impact on the company since it produces phosphate fertilizers and not nitrogenous fertilizers. BINV highlighted that it is not in a position to respond to Adnoc offer for Total Energies Egypt on the 15th of September due to unresolved legal issues related to the validity of the transfer notice from current owner TotalEnergies Marketing Afrique (TEMA).Some Active Pharma Ingredients (APIs) utilized in the production of medicine will be exempted from VAT, as per Customs Authority decision.AstraZeneca Egypt plans to invest USD30 million in the local market over the next three years.
03:08 09/18/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
01:24 09/15/2022
Pre-Trading Thoughts
SFE and QIA signed one of three MoUs between Egypt and Qatar during President El Sisi’s visit to Doha. The two countries also signed an agreement to cooperate on ports and social affairs.The Ministry of Transport is looking into 35 affiliated companies for potential listing on EGX.Abu Dhabi Ports acquired 70% of two Egyptian logistics companies, “Transmar” and “Transcargo International” (TCI), at a total deal value of USD140 million.Mopco stated that the new cabinet decision of applying a new gas cost formula for Urea producers, does not have any impact on the company since Mopco already has its own pre-determined formula in a contract valid until 2040. DOMT shareholders agreed to sell 93.0 mn shares to a consortium of investors led by Expedition Investments (a 32.9% stake in the firm). The government has lifted a ban on the export of food staples that it had introduced earlier this year in response to the global food crisis. Al Amal Auto —the sole agent and distributor of BYD and Lada brand of passenger cars— could be forced to shut down its factory due to import restrictions. EGAL released an adjusted net profit for FY21/22 of EGP2.5 billion, up from EGP2.4 billion released previously. Alameda plans to invest EGP5 billion in the Egyptian healthcare sector over the next five years, doubling its investment in Egypt, by adding 1,000 beds.KIA acquired a 4.8% stake in RMDA yesterday for EGP144.4million (EGP3.00 per share).FRA approved ATLC’s request to increase its paid-in capital through a rights issue to EGP437.3 mn (an increase of EGP150 mn), at par of EGP2.50/share. The record date is 29/9, subscription starts 4/10 and ends 2/11. 
02:41 09/15/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman - CETA, CFTe
01:29 09/14/2022
Pre-Trading Thoughts
US stocks suffered the worst day since June 2020 yesterday after August inflation data with concerns that Fed could go even larger and hike by a full 100 bps.Five major GCC funds are willing to participate in a financing package exceeding USD10 billion to contribute to the financing of the climate change "Nofi" program. Prime Minister Moustafa Madbouly followed up on more than USD 1 bn worth of MoUs for industrial investment by nine foreign and local manufacturers.The Ministry of Petroleum aims to increase the investments of foreign oil companies operating in the country to about USD7.750billion in FY2022/23, an increase of 35% YoY.FRA has approved new amendments to the rules for listing and delisting securities on the Egyptian Stock Exchange, to facilitate the process. FRA amended rules regulating margin trading, and abolished the maximum limit for margin purchases for the companies and individuals.Any of the Finance Ministry’s issued securities — like sukuk and variable bonds — can now be listed on the EGX.Stock exchange aims to offer 5 or 6 new companies within 6 months, with reliance on the government IPO program. The clearing house is working to launch an app through which investors can easily collect returns and dividends.Cabinet published in the official gazette that the natural gas cost will be revised for nitrogen fertilizers producers, Gass cost is higher than the current cost (USD5.75/MMBtu) if Urea prices are above USD500/ton and lower than the current cost if Urea prices are less than USD500/ton. The floor for the formula is reached when Urea prices hit USD340/ton or below. Bottom Line: The formula is positive for long term margins but will create short term pressure on margins if Urea prices are higher than USD500/ton. ESRS's CEO, Ahmed Ezz, confirmed that the company's investment in Egyptian Steel is a long term one, denying any merger plans between the two companies, or between ESRS and IRAX.  An arbitration ruling of EGP369.4 million and USD0.55 million was issued against MBSC on the arbitration dispute filed by Qalaa Holdings subsidiary the Arab Swiss Engineering Company (ASEC) to resolve a contractual dispute. MBSC is studying the decision and said that it may appeal the ruling.  Edita is in the final stages of acquiring an additional production line for its cake segment for around EGP 20 mn. The company didn’t disclose the name of the company it’s negotiating with or the line’s production capacity. Al Mansour International Distribution Company, Imperial Tobacco's local agent raised the selling prices for its brand "Davidoff" by EGP1-2/pack.  Japanese auto parts maker Yazaki is waiting to receive land to start building a EUR 20 mn factory in Fayoum that will export auto parts under freezone rules. Operations are set to kick off by December 2024.    
04:56 09/14/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman - CETA, CFTe
01:06 09/13/2022
Pre-Trading Thoughts
El Sisi lands in Qatar today to talk investment in his first visit since we normalized relations in early 2021. Egypt Sovereign Fund is currently working on preparing government companies for initial public offerings, with values ranging between USD5.5-6.0 billion, with USD2.5-3.0 billion to be announced within 4 weeks. The government has started preparations for the economic conference that El-Sisi called for.  The Prime Minister held separate meetings with Hassan Abdullah to discuss the most important indicators of monetary policy and negotiations with the IMF. CBE is working to link Russia’s MIR payments system with Egypt’s homegrown Meeza card network. Estimated value of the goods accumulated in Egyptian ports and awaiting the completion of customs procedures for release reached about USD2.6 billion.QIA is waiting for NTRA’s approval to purchase a stake in Vodafone Egypt.Mobile phone sales recorded a decline of around 30% YoY during 7M2022 to stand at 6.85 million devices.IDHC reported 2Q22 attributable net profit at EGP126 million (-60.8% YoY, -57.7% QoQ). For 1H22, net attributable profit came in at EGP422 million (-34.7% YoY). IDHC is currently trading at 2022f P/E of 11.3x and EV/EBITDA of 6.1x. SWDY inaugurated the second phase of its industrial complex in Tanzania that includes an oil-immersed transformers plant with an annual capacity of 2,500 unit. CCAP's Taqa Arabia will explore ways to develop and operate gas transport services in Saudi Arabia after signing an MoU with the Saudi Natural Gas Distribution Company.CCAP stated in a release issued yesterday that it deposited USD18.5 million, which is a value in dispute with a GCC investor in court. EXPA’s BoD agreed to increase the issued and paid-in capital from EGP5.27 billion to EGP6.6 billion, through raising EGP1.32 billion over two phases. TALM disclosed their enrolment numbers for the academic year 2022/2023, by recording a new intake of 1,800 student, +96.5% YoY.DOMT’s shareholders have reportedly agreed to sell almost 53 mn shares to the Expedition investment.Weekly Commodity Update |           Last Price            WoW Change, %Brent, USD/bbl            94.7     -1.5%Diesel-HSFO Spread, USD/ton          670.3   -2.2%Egypt Urea, USD/ton  850.0   -5.6%Polyethylene, USD/ton           1,100.0            0.0%Polypropylene, USD/ton         1,000.0            0.0%Steel/Iron Ore Spreads, USD/ton       459.2   0.0%LME Aluminum Cash Price, USD/ton 2,274.0            -0.7%Egyptian Retail Cement, EGP/ton      1,463.0            0.0%Steam Coal FOB, USD/ton     436.0   -4.8%Crude Palm Oil, USD/MT       803.1   -6.5%SMP, USD/MT            3,575.0            1.4%WMP, USD/MT           3,610.0            5.6%
05:48 09/13/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
02:18 09/12/2022
Pre-Trading Thoughts
EBRD will provide USD1.3 billion in financing to Egypt to promote its green transformation strategy, which aims to get rid of old power plants and contribute to new wind and solar energy projects.  Egypt intends to sign two contracts for green hydrogen production projects with GCC and foreign entities, with investments of USD5 billion. The government aims to increase tourism revenues to USD30 billion annually from the current USD11-13 billion.  SWDY’s 99.8% owned subsidiary El Sewedy Electric for Trading & Distribution, signed three contracts worth EGP2.2 billion to execute the South Valley development project in Toshka through reclamation of 375,000 feddan. IRAX reported sturdy performance for 2Q22 with consolidated attributable net income standing at EGP2.9 billion (+180% YoY, +144% QoQ), bringing 1H22 earnings to EGP4.1 billion, almost double that of last year. IRAX is currently trading at FY22e P/E of 2.5x and EV/EBITDA of 2.8x.EFIH to buy treasury shares up to 5% of total outstanding shares and approved the disbursement of 0.25% ESOP shares which implies a total cost of EGP66 million.Some local car agencies are storing their share of International car brand quotas in warehouses outside of Egypt to maintain their quotas amidst import restrictions.MICH will start the technical evaluation for the offers submitted by private companies to establish a hydrogen unit under the BOT right-of-use system, in mid-September 2022. OFH denied having any investments in the e-commerce company Capiter.  CNFN highlighted it has enough guarantees on the factoring contracts signed with the e-commerce company Capiter with no significant impact on the profits of the holding company. 
03:07 09/12/2022
Technical Analysis
Market Overview Prepared by; Mohamed Othman- CETA, CFTe
02:07 09/11/2022
Pre-Trading Thoughts
Core inflation climbed 16.7% from a year earlier, up from 15.6% in July.The European Central Bank raised interest rates by a historic 75 basis points — and its head hinted there could be more jumbo rate hikes to come. Suez Canal revenues hit an all-time high of USD 744.8 mn in August (+32% YoY. Tonnage increased 16% YoY to 127.8 mn tons.Suez Canal Authority intends to list subsidiaries on the Egyptian Stock Exchange at the end of this year or early next year.The Customs Authority relies daily on the exchange rates announced by the CBE to determine the customs’ exchange rate.The government started preparing for the establishment of a joint stock company for Egyptians abroad to invest in various economic activities, offering shares in national projects.The proceeds from real estate taxes increased during the first two months of the current fiscal year by 11.3% YoY, to reach 831.1 million pounds.Tax Authority has opened registration for the second phase of the e-receipt system.The Sovereign Fund of Egypt intends to offer 20 desalination plants to the private sector after completing the evaluation process within two months.El-Sisi held meetings with Scatec Energy to discuss the establishment of a project to produce 3 GW of wind energy, and with Australian Energy FFI to discuss generating 9.2 GW of electricity from renewable energy.The Saudi Investment Fund (PIF) plans to invest in the egyptian petrochemicals sector as a part of its USD10 billion investments program (AMOC, SKPC and MICH).ESRS reported exceptional performance for 2Q22 with attributable net income standing at EGP1.8 billion. GPM of 30.3% for the quarter. ESRS is currently trading at FY22e P/E of 2.7x and EV/EBITDA of 3.2x. OCDI relaunched its 464 feddan New Zayed project after being re-masterplanned due to the rezoning of the New Zayed area at large. This should boost sales in an already strong year for OCDI sales in FY22.Expedition Investments bidding to acquire 34% of DOMT (FV: EGP6.00, OW) is now offering to purchase shares for EGP 5.50 apiece, up from EGP 5.00 before.HRHO is close to launching a fund with a capital of EGP1.5 billion that invests in startups, along with HSBC, and several regional and local banks. CIB has acquired a 15% stake in El Sewedy Engineering Industries (SEI) through a capital increase. BINV is going to have to decide by next Thursday whether it wants to preempt Adnoc Distribution’s bid to acquire a 50% stake of TotalEnergies Egypt. CNFN will manage a Sukuk program worth EGP 2 billion for Misr Capital and CI Capital.
04:36 09/11/2022
Technical Analysis
Market Overview Prepared by: Mohamed Othman- CETA, CFTe
01:32 09/08/2022
Pre-Trading Thoughts
NIR declined slightly to USD33.141 billion at the end of August, compared to USD33.143 billion in July.EGP slipped to 19.31 against the USD yesterday from 19.29.The Customs Authority has raised the USD customs exchange rate to EGP 19.31 from EGP 18.65 in June, effective today.The European Bank for Reconstruction and Development (EBRD) is ready to provide as much as USD 1.3 bn in funding to support clean energy projects in Egypt.Putin said he wants to change the landmark agreement allowing Ukraine to export grain via the Black Sea to limit which countries can receive shipments.Cabinet approved a draft decision that sets the prices of industrial land offered to investors under the usufruct system. Oil prices dropped to USD82.60/bbl on fear of global demand.Credit Agricole France will purchase a 4.8% stake in Credit Agricole Egypt today, taking its holdings in the local unit to around 65%, at EGP 6.23-EGP 7.00/share.AUTO is entering into an agreement with Chimera Abu Dhabi to indirectly sell 45% of the shares of GB Lease. GB Lease recorded revenues of EGP275.7 mn during 1H22, representing 6.3% of GB Capital’s top-line and 1.8% of the total group’s top-line. Expedition Investment decided to revise its offering price for DOMT according to Al Mal, after the fair value study at EGP6.90/share. EGAL confirmed funding two-thirds of its USD300 million overhaul by offering fresh stakes through a capital increase. The government plans to sell 10% of its stake in Helwan Fertilizers at EGP1.5 billion.
04:21 09/08/2022
Technical Analysis
Market Overview Prepared by: Mayada Amin - CETA, CFTe
02:21 09/07/2022
Pre-Trading Thoughts
Planning Minister Hala El Said confirmed to Bloomberg that the government backs exchange-rate flexibility, which will bode well for the economy.The Sovereign Fund of Egypt has set up a pre-IPO arm to bring strategic investors onboard ahead of plans to list state-owned firms.Prime Minister: The government will offer new tax breaks for high value industries.Prime Minister: The state isn’t about to pull back from big infrastructure projects, saying they’ll only cost more to execute further down the line.Eni wants to develop LNG projects in the region, including in Egypt, under a plan to invest around EUR 4.5 bn in upstream activities every year until 2025.Egypt is to receive a new 63k-ton shipment of Ukrainian wheat.The Central Bank decided to double the maximum limit for public banks’ lending to companies from EGP250 million to EGP500 million without obtaining prior approval from the CBE, with the aim of helping companies expand their business. If the required loan amount exceeds EGP500 million, the banks will have to secure approvals from the CBE. IDHC announced that its SPA (Special Purpose Agreement) to purchase a 50% stake in Islamabad Diagnostic Center (IDC) has expired, on unsatisfied conditions. However, negotiations are still ongoing. IDHC is currently trading at 2022f P/E of 10.8x and EV/EBITDA of 5.6x.Vodafone Group won’t use the right of first refusal on Vodafone Egypt, in case Qatar Investment Authority submitted an offer to purchase up to 25% stake in Vodafone Egypt (out of ETEL’s c.45% stake). Egypt Post intends to acquire “Egypt Smart Cards”, to support financial inclusion and digital transformation services. “Egypt Smart Cards” currently manages around 20 million cards and transaction value could range between EGP700 million and EGP1.0 billion. Phillip Morris will raise selling prices effective of today for brands Marlboro, Merit, and L&M by EGP1-3/pack. This bodes well for EAST's bottom line as they own 24% of Phillip Morris' newly established manufacturing company United Tobacco.BDO has valued DOMT at EGP 6.90 per share — 38% higher than the price that the Expedition Investments-led consortium is offering shareholders in its ongoing mandatory tender offer. Pachin’s BoD chooses Elite Financial Consulting for the fair value study of the company prior to the acquisition.CSAG is in negotiations with Belgian Dredging International to implement a logistical services project in Al Montazah Palace area in Alexandria. Qatar Ports Management Company is eyeing investments in Ain Sokhna Port, where talks are currently underway to increase cooperation in the maritime transport sector.  ZMID declared 1:1 stock dividends. Record date is 21 September 2022. Distribution date is 22 September 2022.
04:03 09/07/2022
Technical Analysis
- MARKET OVERVIEW - Prepared by: Mayada Amin- CETA, CFTe
03:05 09/06/2022
Pre-Trading Thoughts
Qatar Investment Authority is negotiating purchasing up to a 25% stake in Vodafone Egypt, out of ETEL’s c.45% stake in Vodafone Egypt. Potential transaction valuation post capital gains tax is EGP5.50-10.30/ETEL share. COMI will raise its capital to EGP 29.82 bn from EGP 19.85 bn, through a rights issue. The bank would issue 1 bn shares at EGP 10 to be financed from general reserves for the period ended 31 December 2021. ADIB will move forward with an EGP 1 bn capital increase to raise its capital to the minimum required EGP5 bn, after the Financial Regulatory Authority released its approval. ADIB will offer an additional 100 mn shares at EGP 10 per share to existing investors. The total value of mortgage finance provided by banks and companies reached EGP 49.23 billion, until the end of August 2022, extended for a total of 446,934 clients. Aman Microfinance, a subsidiary of RAYA, is negotiating an EGP 1 bn credit facility with four banks. EGAL received wholesale export orders, mostly from European countries, to supply it with cold-rolled aluminum coils, after the recent escalation by Russia to stop supplying gas to Europe indefinitely. EGAL exports 60% of its production capacity to several markets, including 13 European countries, most notably Germany, Italy, France, Greece and the USA.The Holding Company for Chemical Industries has chosen the American company “ABC” as a general contractor for the Kima 2 development project, in replacement of Tecnimont.  ASEC Mining Company – Ascom- recorded 1H22 profit of EGP68 million, compared to losses amounting to EGP36.25 million in 1H2021, driven mostly by revenue growth.  Amr Ahmed Lotfy Shehata Morsi was appointed as CEO and Managing Director of AMOC.  Weekly Commodity UpdateOPEC+ alliance decided to reduce oil production by 101 thousand barrels per day in the month of October, to cancel the increase approved in September. Oil rose to USD96.10 a barrel. Brent, USD/bbl  96.1        -5.9%Diesel-HSFO Spread, USD/ton    685.4     -4.0%Egypt Urea, USD/ton      900.0     14.6%Polyethylene, USD/ton  1,100.0  0.0%Polypropylene, USD/ton               1,000.0  1.0%Steel/Iron Ore Spreads, USD/ton              456.9     5.0%LME Aluminum Cash Price, USD/ton        2,297.8  -8.2%Egyptian Retail Cement, EGP/ton              1,463.0  0.0%Steam Coal FOB Newcastle Australia, USD/ton    435.0     2.9%Crude Palm Oil, USD/MT               861.5     -6.2%SMP, USD/MT   3,524.0  0.0%
03:29 09/06/2022
Technical Analysis
- Market Overview- COMI- AUTO- ESRS- SWDY- FWRY- MNHD- EGTS- SKPC- Prepared by: Mayada Amin- CETA, CFTe
02:40 09/05/2022