Pre-Trading Thoughts

Al Ahly Pharos

The IMF is scheduled to complete its third review of Egypt's USD8 billion loan deal by the end of June, and its last review by 2026. The remaining five reviews will take place every six months, with each disbursement programmed to be around USD1.3 billion.

Egypt’s GDP growth slowed to 2.3% in 2Q 2023-24, down from 2.65% in 1Q 2023-24 and 3.9% during the same period last year.

Net Foreign Assets of the banking system improved significantly in February, recording a net liability position of USD21.97 billion up from a NFL position of USD29 billion in January.

Egypt's external debt increased by about 2.1% during 4Q2024, equivalent to USD3.5 billion, according to Ministry of Planning, reaching USD168.04 billion in December 2023 compared to USD164.522 billion at the end of September 2023.

The EU-Egypt Investment Conference is happening on Saturday, June 29, according to a cabinet statement.

The Oil Ministry has been working on a plan that will see state-owned firm Egyptian Petrochemicals Holding Company producing the country’s first sustainable aviation fuels (SAF).

The current account deficit rose in 2Q FY2023-24 to USD6.83 billion, compared to a surplus of USD1.4 billion in the same quarter of the last fiscal year, and a deficit of USD2.8 billion in the first quarter of the year.

HELI (FV: EGP18.84, OW) reported expectedly strong FY23 revenue of EGP15.6 billion, up 756% y/y, and FY23 net profit of EGP7.8 billion, up 1194% y/y.

EFIC will distribute EGP2/share on 30 April, EGP2/share on 20 October, and EGP3/share on 1 December 2024. DPS is a total of EGP7/share, implying a dividend yield of 9%. The company's general assembly approved increasing issued and paid-in capital from EGP727.7 million to EGP1 billion.

Qalaa Holdings (CCAP) announced the closing of an agreement with Financial Holdings International Ltd (FHI), a shareholder in several affiliates of Qalaa, and a creditor to Qalaa and some of its affiliates. The share purchase and debt assignment agreement settles most of the liabilities owed by Qalaa and certain of its affiliates to FHI, and transfers the shareholding of FHI in several Qalaa affiliates to Qalaa.

The government is currently mulling over a project to produce sustainable biofuel from jatropha plants, where laboratory studies are being funded via an Italian grant.

EGAL announced that two companies, namely the Chinese NFC and the Emirati Fleet Energy Company, have submitted technical offers for the rehabilitation project of EGAL’s facility.

AMIC released its figures for February 2024 where auto sales volume in February increased by a 10% MoM and 21.7% YoY to 7.3k units.

BINV released positive FY23 financial results where the bottom-line recorded EGP518 million (-39% y/y). However, after adding the capital gain received from the exit of Total Energies Egypt to the reported net income, the company’s FY23 total income reached EGP1,228 million compared to EGP846 million in FY22 (+45% y/y).

Valu, HRHO’s consumer finance arm, signed an agreement with Noon payments to provide customers flexible payment agreements.

The CBE’s BoD decided to issue the attached supervisory instructions regarding “Requirements for the Stress Tests for Banks,” where an internal assessment report for capital adequacy should be provided, which reflects an assessment of the banks’ ability to deal with various risks.

CANA’s AGM approved 1) increasing the bank’s authorized capital to EGP10 bn from a current EGP5 billion, 2) approving the dividend distribution proposal (free shares worth EGP1.5 billion), which will bring the paid-in capital to EGP6.5 bn

The General Union of Poultry Producers announced the launch of an initiative to reduce the price of chicken by 10 to 15%, and to reduce the price of an egg carton to EGP145 from EGP156.