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The CBE has released the Balance of Payment (BoP)'s performance report for 1HFY2024/25. Key points are: 1) The overall BoP recorded a deficit of USD503 million in 1HFY2024/25, and 2) The current account (CA) deficit has surged by 15% YoY to c. USD11.1 billion. A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week. Further details will be communicated at the conclusion of the mission,” IMF Press Officer Angham Al Shami said.The headline PMI declined from 49.2 in March to 48.5 in April, which was the lowest reading in 2025 so far. The downturn was widely attributed to a weakening of demand at non-oil companies. Lower levels of activity and new work led non-oil companies to rein in purchases of inputs for a second month in a row. Input prices in the non-oil economy rose at their fastest pace in four months in April, however, output prices were unchanged.A tranche of the EUR4 bn grant from the EU could land in state coffers within weeks, EU Ambassador to Cairo Angelina Eichhorst told MENA news agency. The financing, part of a broader EUR5 bn macro-financial assistance package agreed in March 2024, was approved by the European Parliament last month.The Madbouly government has agreed with Italian energy player Eni to raise the purchase price of new natural gas from onshore areas by 60%, a government official said. The hike will apply to output from sites managed by Agiba — a JV between Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC).The state is considering a proposal to allow every family to purchase a residential unit with affordable mortgage terms, including a subsidized interest rate and a repayment period of eight years at most, according to a cabinet statement. The initial plan prohibits selling the properties for a certain period of time.PHDC achieved remarkable 1Q25 sales of EGP80.2 billion, up 148.4% y/y from an already strong 1Q24 and up 286.4% q/q, putting PHDC on track to achieve its FY25 sales target of EGP200.0 billion, which would imply a 32.4% y/y increase.EGAL reported 3Q24/25 KPIs. Net profit after tax of EGP2.5 billion in 3Q24/25 (+42% YoY, -19% QoQ), EGP9.9 billion in 9M24/25 (+89% YoY). Bottom line performance was shaped by relatively tight operating margins along with a foreign exchange loss of EGP813 million that hit the P&L in 3Q23/24.  EGAL is currently trading at FY24/25e P/E of 5.5x. SWDY has acquired a 60% stake in Thomaseen Services to expand into the oil and gas industry. The acquisition consists of Thomassen's Middle East and Africa business unit, filters manufacturing, and its African business affiliate. CLHO stated in a press release that it secured all necessary approvals to increase its ownership in Cairo specialized hospital from 57% to 90% of the company's shares. ISPH cancelled its plan to transfer el sherouk Pharma hospital to its investment arm "AIM" due to obstacles in issuing the needed licenses and approvals. ISPH added that it plans to exit from the hospital within three years.EFID BoD approved the sale of a production line and machinery, which have been previously imported by EFID, to Ahramat Al Nile for General Trade and Food Industries-limited liability, located in Iraq, with total amount of USD3.0 million. 

The MPC is scheduled to meet later today to decide on interest rates. We believe the CBE has the room to ease by up to 200 bps in its meeting today.The Finance Ministry has more than doubled its target for international debt issuances in the draft budget for the next fiscal year, coming in at a total of EGP400 billion (USD8 billion), up from EGP150 billion (USD3 billion) in the current fiscal year, according to official figures. Remittances from Egyptians abroad continued their upward pace at the start of the year, rising 83.2% y-o-y to USD2.9 billion in January, according to a statement from the CBE.  The Finance Ministry expects Suez Canal revenues from transit fees to almost double to USD6.3 billion in the budget draft for FY25/26, compared to USD3.7 billion estimated in the current fiscal year. Suez Canal revenues reached USD3.99 billion in 2024, a 61% decrease compared to USD10.25 billion in 2023, due to lower tonnage, impacted by Red Sea disruptions. Property developer Landmark for Real Estate Development (LMD) is in talks with the Egyptian government to develop a new USD4 billion mixed-use project in Cairo, Managing Partner Hamad Al Abbar said.Chevron — the operator of the last active exploration block in the Red Sea — is reportedly on its way out of the block it operates, Asharq Business reported, citing an unnamed government source. Investment Minister Hassan El Khatib and Tunisian Prime Minister Sara Zaafarani discussed putting into motion a proposal to establish a joint bank to facilitate investment and trade between the nations, according to a ministry statement.Petroleum products' subsidies increased by about EGP28 billion during the 9M24/25, reaching EGP104.9 billion, compared to EGP76.3 billion in the comparable period a year before.MBSC attributable bottom line recorded an impressive EGP495.0 million (+295% YoY, +199% QoQ) during 4Q24, bringing FY24 attributable bottom line to EGP833.5 million (+126% YoY). Enhanced profitability came on the back of sturdy revenue growth and operating margin expansion that trickled down to bottom line. MBSC is trading at FY25e P/E of 8.4x. MBSC BoD approved a capital decrease through the cancellation of treasury shares amounting to 6.1 million shares at a value of EGP61.1 million, resulting in issued and paid-in capital of EGP550.2 million.EFIC will distribute cash dividends of EGP15.00/share over three equal tranches on 30 April, 20 August, and 30 September 2025, for shareholders on record on 27 April 2025. This implies a dividend yield of 10% and a payout ratio of 62% of FY24 earnings. MFPC will distribute cash dividends of EGP1.00/share on 7 May 2025 and EGP2.50/share on 30 September 2025 for shareholders on record on 4 May 2025. DPS totals EGP3.50/share for FY24, implying a dividend yield of 8% and a payout ratio of 48% of FY24 earnings.OCDI intends to sign a co-development agreement with Midar in 3Q25 to develop a 4.2 million sqm land plot in East Cairo.

Monthly urban headline CPI inflation recorded 1.6% in March 2025 compared to 1.4% in February. On an annual basis, urban inflation recorded 13.6% compared to 12.8% in February. Egypt's Fuel Automatic Pricing Committee raised on Friday prices of gasoline and diesel by EGP2, but kept diesel fuel supplied to electricity, food industries, and vehicle gas unchanged.Fitch Ratings affirmed Egypt's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' with a Stable Outlook. S&P Global Ratings revised Egypt's outlook to stable from positive and maintained its B-/B rating for Egypt's long- and short-term local and foreign currency debt. The MPC is scheduled to meet on Thursday to decide on interest rates. We believe the current scene might induce the CBE to act conservatively with a moderate easing, given the uncertainties sweeping global markets triggered by Trump's trade war in addition to persistent geopolitical risks. Despite the pick-up in inflation reading for March and given the decline in core inflation rate, and also taking into account the current uncertainties, we still believe the CBE has the room to ease by up to 200 bps in its upcoming meeting on 17 April 2025.The Madbouly government has plans to set up two integrated textile industrial zones in Minya and Fayoum at a total cost of EGP27 billion.Private companies accounted for 72% of Egypt's wheat imports in 1Q25, while the government secured the remaining 28%. Total interbank market transactions surpassed the USD3.5 billion mark last week, a significant jump from the USD750 million-1.2 billion the market usually sees changing hands each week. Egyptian National Railways signed three contracts worth over USD235 million with US-based Progress Rail to upgrade and maintain parts of the country's locomotive fleet. Some 100 Saudi investors and members of the Saudi-Egyptian Business Council led by the Federation of Saudi Chambers landed in Cairo yesterday to kick off a visit aimed at deepening investment ties between the Kingdom and Egypt.Egypt is set to officially join the EU's research and innovation funding program Horizon Europe in November. The British Ambassador to Egypt said that his country is currently studying a trade agreement with Egypt aimed at reducing customs duties on some products imported by Cairo from Britain, in exchange for the export of Egyptian agricultural crops such as grapes and strawberries to the United Kingdom.Italian company Eni has begun negotiations with global entities, led by Baker Hughes, to implement a plan to drill two new wells in the Zohr field in the Mediterranean Sea, with estimated investments ranging between USD300 million and USD400 million.Data from the CBE revealed that the Ministry of Finance sold on Thursday approximately EGP116.5 billion in six-month and one-year T-bills, surpassing the targeted EGP75 billion in liquidity. The European Union has reduced the initial anti-dumping duty applied to hot-rolled flat steel products from Egypt to 12.8% from the 15.6% it proposed late last month.DOMT's general assembly approved cash dividends distribution of EGP0.85/share for FY24, implying payout ratio of 47.9% and dividend yield of 3.6%. Dividends will be distributed in May 2025.

 Trump dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow trade negotiations with those countries, while raising the tariffs imposed on imports from China to 125% “effective immediately”.The EGP dipped against the USD during trading yesterday, setting a new post-float low as the greenback changed hands for EGP 51.72-51.75.The Sovereign Fund of Egypt (SFE) will begin restructuring five military-owned companies ahead of their planned listing. The firms are filling station operator Wataneya, bottled water company Safi, food manufacturer Silo Foods, fuel retailer Chill Out, and the National Roads Company. The offerings will take place between this year and 2026.Egypt is planning on issuing USD2 bn in sukuk in 2025 through multiple offerings.Some 29 French companies discussed plans to invest in the local manufacturing and transport sectors during a meeting with Industry and Transport Minister.Egypt is preparing to receive a Moroccan government delegation in the coming weeks to continue talks on resolving a trade imbalance between the two countries.Prime Minister Mostafa Madbouly revealed that Egypt has begun taking preemptive measures to address the global trade war, including hedging the purchase of some strategic commodities, most notably wheat. The government has decided not to renew oil price hedging contracts, which expired at the end of last March and covered 35% of the contracts, in light of the sharp decline in oil prices below USD60 per barrel. Egypt's trade deficit declined by 0.58% YoY in January, recording USD3.42 billion, compared to USD3.44 billion in January 2024.Prime Minister Madbouly set the date for offering state-owned assets in downtown Cairo next June.Two new projects with investments estimated at approximately USD58 million within the scope of the Chinese-owned "TEDA-Egypt" industrial zone in the Suez Canal Economic Zone were founded yesterday, in the home appliances and food industries' sectors.QNBE (FV: EGP70.00, OW) recorded healthy results where 1Q25 net profit post-minority interest recorded EGP7,186 million (+14% q/q, +2% y/y). The stock is currently trading at 2025 multiples of P/B of 0.6x and P/E of 2.4x.Banque du Caire proposed capital increase received the approval of the EGX's listing committee. The bank will increase its issued and paid-in capital by EGP1.5 bn to EGP20.5 bn through issuing 750 mn new shares with a nominal value of EGP2 per share.PHDC (FV: EGP8.97, OW) Board approved a EGP1.3 billion loan for its subsidiary to finance the construction of 200 hotel rooms in Hacienda White on the North Coast. In addition, the EGM approved a EGP40.0 million capital decrease through retiring treasury shares.EKHO will pay out cash dividend of USD0.035 per share on its 2024 earnings after its general assembly approved the move. The assembly also approved the distribution of USD14.1 mn in bonus shares.PHAR stated in an EGX release that the record date for its 2024 dividend of EGP3.0/share is 17th of April, 2025. It added that the dividend will be distributed on two installments, the first one is EGP1.5/share with a distribution date of 24th of April, 2025 and the second one is EGP1.5/share with a distribution date of 15th of September, 2025. 

Net foreign assets in Egypt's banking sector rose for a second month running, reaching USD10.2 billion in February, up 17.2% from January's USD8.7 billion surplus. A narrower deficit at commercial banks helped lift the sector's external position, with its net foreign asset deficit shrinking to USD1.9 billion in February from USD3.3 billion a month earlier.Egypt has received a USD1.2 billion disbursement from the IMF as the fourth tranche of its Extended Fund Facility (EFF) program, the Egyptian Cabinet announced.The Egyptian government paid USD800 million in arrears to foreign oil companies by the end of March, bringing the total amount of overdue payments to oil companies to USD6.3 billion since June.High-level Egyptian trade delegation will travel to Canada in mid-April as part of efforts to boost Canadian investment and trade with Egypt, Egyptian-Canadian Business Council head said.Eight OPEC+ countries agreed to raise oil production more than three times originally planned, according to a statement from the group, which includes oil producing giants Saudi Arabia and Russia.BINV's consolidated bottom line post minority recorded EGP1.5 billion (+2.87x y/y) in FY24.BINV's Board approved of a cash dividend distribution of EGP1.25/share amounting to EGP272.95 million, implying a payout ratio of 28.7% and a dividend yield of 5.4% to be ratified by the AGM.Bedaya Mortgage Finance, a subsidiary of HRHO, has closed a EGP1.6 billion securitized bond issuance.United Bank's AGM approved the distribution of cash dividends of EGP825 million to shareholders, which is EGP0.75/share, implying a dividend yield of 5.3%, to be distributed within three months. According to AMIC, auto sales rose 4.3% MoM in February to 10.6k units, up slightly from 10.1k units in January. The figure marks a modest rebound from last month's 22.0% drop. ABUK appointed Hany Dahy as the company's Chairman and Managing Director. 

*Key news articles for today*The International Finance Corporation (IFC) unveiled the list of 11 Egyptian airports slated for development through public-private partnerships (PPP).China's Wu'an Xin Feng signed the contract for its USD1.7 bn integrated metal industries complex in the Ain Sokhna industrial zone with the government yesterday. The Egyptian Electric Utility and Consumer Protection Regulatory Agency (Egyptera) has temporarily halted the acceptance of requests to connect solar power plants to the grid until a regulatory framework for net metering and solar self-consumption is finalized.The House of Representatives approved a grant from the Japanese government worth JPY500 million (USD3.3 million) to the Ministry of Agriculture.Local fertilizer player Agro TH plans to establish its second factory in Sadat City in partnership with an Omani investor with an estimated investment of EGP5 bn.Local home appliances manufacturer Royal Home plans to list 20% of its shares on the EGX within the next 18 months.Instapay transfer fees come into effect on Tuesday, 1 April. Transfers will be subject to a 0.1% fee, ranging from EGP0.50 and EGP20 per transaction.ORAS 4Q24 consolidated net income attributable to shareholders decreased 29.2% YoY to USD31.0 million and adjusted net income attributable to shareholders increased 0.4% YoY to USD117.3 million in FY24. ORAS is currently trading at FY25e PE of 4.9x.JUFO reported 4Q24 attributable net profit of EGP298 million (+108.4% YoY, -69.0% QoQ). FY24 attributable net profit recorded EGP2,735 million (+167.9% YoY), missing our estimates of EGP2,969 million. JUFO is currently trading at FY25f P/E of 8.7x.TMGH and Alameda Healthcare signed a partnership agreement to build a 200-bed hospital in TMGH's Madinaty, with investments of EGP5.0 billion.HELI expects its revenue to reach EGP300.0 billion in ten years.EGCH obtained an EGP10 billion credit facility, from a consortium of 6 banks, to finance the company's nitric acid and ammonium nitrate project. The facility is distributed USD93 million in foreign currency and EGP5 billion in local currency.CIEB Annual General Meeting (AGM) has approved the distribution of cash dividends amounting to EGP3.2 per share, reflecting a payout ratio of 50%. The distribution date is set for April 17, and the record date is April 14.COMI has announced cash dividends of EGP2.50 per share. The distribution date is set for April 10, with a record date of April 7. BTFH announced that the coverage rate for the first phase of the company's capital increase subscription reached 92.11% amounting to 4.95 billion shares. ValU plans to issue securitized bonds worth EGP1 billion during the second quarter of this year.ETEL's assembly approved distributing cash dividends of EGP1.50/share, implying a DPO of 25.4% and a DY of 4.1%.Hilton will set up Africa's first Signia Hotel and Signia Residence in West Cairo's Skywalk. The 200-key hotel will include build on 5k sqm space.The Holding Company for Tourism and Hotels is working on adding 3k keys to its portfolio within the coming three years. 

Egypt has reportedly set a pricing and payment mechanism for securing LNG supply agreements for the summer months.Chinese firm Di Seta has begun construction work on a USD40 million ready-made garments factory in the Qantara West Industrial Zone.Egypt's merchandise exports reached USD4.3 billion during January 2025, compared to USD3.3 billion in the same month of 2024, a growth of 30% YoY.The House of Representatives approved granting workers an annual bonus of no less than 3% of the insured salary within the new draft labor law instead of 7% of the basic salary.Minister of Finance said that tax revenue jumped 38% YoY in 1H FY2024/25 to EGP913.4 billion.MASR's (FV: EGP8.11, OW) net profit in 4Q24 decreased 48.8% y/y and 62.6% q/q to EGP397.6 million, taking FY24 net profit up 36.9% y/y to EGP2.9 billion. The Board of Directors proposed the distribution of cash dividends of EGP0.25/share, implying a payout ratio of 18.3% and dividend yield of 6.0%. The Board also approved purchasing 85.4 million treasury shares. EFID reported 4Q24 financial results. Net profit reached EGP407 million (+0.9% YoY, +1.4% QoQ). FY24 bottom line came in flat at EGP1,634 million. EFID is currently trading at FY25 P/E of 7.6x and EV/EBITDA of 5.4x.MFPC released FY24 financial indicators. Net profit soared by 153% YoY to EGP15.1 billion in FY24. The company attributed the increase to an EGP7.1 billion rise in FX translation differences from the year before in addition to a EGP1.4 billion increase in interest revenue. MFPC is currently trading at 2025f PE of 6.9x and EV/EBITDA of 6.1x.The FRA gave the nod for EKHO to proceed in its stock dividend distribution to shareholders at 5% of the issued and paid-up capital to reach USD295.81 million, with an increase of USD14.09 million distributed over 56.34 million shares at par value of USD0.25/share (1:20 ratio). 

*Key news articles for today* Arab leaders endorsed Egypt's USD53 bn reconstruction plan for Gaza during yesterday's emergency Arab League summit held in Cairo. Net foreign reserves rose to USD47.4 bn at the end of February 2025, marking a USD129 mn increase from January.Chinese companies are expected to invest USD2-3 bn in moving production to Egypt, particularly the Suez Canal Economic Zone (SCZone), as China looks to maintain export access to global markets amid trade pressures from the US.OPEC+ decided to proceed with an earlier decision to gradually increase oil production from April in a move that will see it unwind long-standing output cuts.An official revealed that the government has excluded Cairo International Airport from the list of airports that will be offered to the private sector for development, management and operation, and has decided to start with a small airport model, explaining that the International Finance Corporation will finish preparing the strategy for the airports' within 3 months.Egypt's trade deficit widened in December 2024 to record USD4.15 billion, up from USD3.67 billion in December 2023, on a faster pace of growth in imports compared to exports.SUGR reported 4Q24 financial results with bottom-line of EGP290 million (+55% YoY, +8.1x QoQ). This brings FY24 bottom-line to EGP1,262 million (-21% YoY). SUGR is currently trading at FY25 P/E of 4.9x.TAQA posted a 26% YoY growth in FY24 consolidated net profit to record EGP702.0 million. Revenues increased by 40% YoY to EGP18.9 billion in FY24.EFIH (FV: EGP28.28, OW) announced that it is participating in the launch of Egypt's first onshore private equity fund, C3 Capital Fund 1, the first-ever Private Investment in Public Equity (PIPE) fund in Egypt. The final close of the fund is expected to be EGP3.0 billion. Pharma sales value increased by 54.7% YoY in the first month 2025 to record EGP21.5 bn, while sales volume recorded a modest 6.5% YoY increase. 

The IMF is set to sign off on Egypt's fourth review of its USD8 billion loan program when the Fund's Executive Board meets on Monday, March 10. Indian plastic packaging manufacturer Flex PET opened its polyethylene terephthalate resin manufacturing plant with investments of USD175 million.Chinese textile manufacturer Zhejiang Cady Industry inaugurated its new USD100 million textile and ready-made garments factory in the Teda industrial zone in Ain Sokhna. French multinational Air Liquide officially opened its EUR80 million medical and industrial gas production factory in the Sokhna Industrial Zone.CBoard, a member of Saudi construction materials manufacturer conglomerate Beam, inaugurated the expansion of a cement board and wall manufacturing facility. India's Abdos opened its USD30 million cosmetics manufacturing plant. The state is set to spend some EGP170 billion on wage and pension hikes during FY 2025-26, according to a Finance Ministry statement. The net foreign assets of the Egyptian banking sector, including the CBE, rose by USD3.5 billion in January to USD8.7 billion. The European Bank for Reconstruction and Development (EBRD) has lowered Egypt's growth forecast for 2025 to 4.2%, down 0.3 percentage points from its previous estimates in September.Egypt has no plans to alter its tax regime in the near future, a senior government official said.The Finance Ministry has secured a USD500 million loan from Deutsche Bank and Bank ABC.EU Commissioner for the Mediterranean Dubravka Šuica is in Egypt today for high-level discussions on the New Pact for the Mediterranean and to ink a EUR90 million project, dubbed Egypt Food Resilience, with the government.The Sovereign Fund of Egypt has formed a committee to list all government companies for the purpose of adding them to the fund during the coming period.The government is reportedly considering imposing taxes on Egyptian companies that generate revenues from abroad, while avoiding double taxation.FWRY reported 4Q24 results. Net profit came in at EGP500 million (+119% YoY, +4.7% QoQ). In 2024, net profit recorded EGP1.606 billion (+125% YoY). FWRY is currently trading at 2025f P/E of 13.1x.ETEL's BoD proposed distributing cash dividends of EGP1.50/share (subject to the general assembly's approval), implying a DPO of 25.4% and a DY of 3.9%.GBCO reported attributable net profit recorded EGP1,135 million this quarter (+82.9% YoY, +52.0% QoQ). FY24 bottom line grew by 54.9% YoY to reach EGP2,928 million. GBCO is currently trading at a FY25 P/E of 4.3x.ORWE reported attributable net profit of EGP329 million in 4Q24 (-25.8% YoY, -46.5% QoQ), bringing FY24 bottom line to EGP2,192 million (+130.3% YoY). ORWE's BoD approved cash dividends distribution of EGP1.60/share for FY24, implying a dividend yield of 6.5%. ORWE is currently trading at a FY25 P/E of 4.1x.POUL attributable net profit of EGP584 million in 4Q24, an increase of 24.0x YoY and a drop of 14.3% QoQ. This brought FY24 attributable net profit to EGP2,387 million (+108.0% YoY). POUL is currently trading at FY25 P/E of 4.3x. ESRS repurchased EGP21.6 billion worth of shares from shareholders opposed to the group's voluntary EGX delisting. EMFD reported an increase of 177.5% y/y and 87.5% q/q in 4Q24 net profit to EGP5.1 billion, bringing FY24 net profit up 126.1% y/y to EGP15.4 billion.CICH 4Q24 net attributable profits post minority recorded EGP616.8 million (+79.4% q/q, +109.9% y/y), bringing FY24 bottom line to EGP2.2 billion (+114.6% y/y). CICH BoD proposed a cash dividend distribution of EGP0.70/share for FY24, implying a dividend yield of 11%. CICH is currently trading at P/B25 of 0.7x and P/E25 of 2.8x.

*Key news articles for today* Egypt plans to “present a comprehensive vision for the reconstruction of the Gaza Strip in a manner that ensures the Palestinian people remain in their homeland and aligns with their legitimate and legal rights.Two consortiums of international energy players are set to invest a total of USD130 million over the next five to eight years in drilling 10 oil and gas exploration wells in East Port Said and the Western Desert.US oil producer Apache is set to kick off a USD60 million drilling program in its Western Desert blocks in March as it looks to ramp up natural gas production by a daily 80 million cubic feet. The project is reportedly part of a wider five-year plan by the company to invest USD3.5 billion in exploration, research, and production in the Western Desert.Spanish medical consultancy WHM is looking into setting up a USD1.8 billion healthcare data center in Egypt through a consortium of investors and in partnership with the CIT Ministry. The Suez Canal's EGP9 billion southern expansion has been completed. The 10 km expansion will improve navigation through the canal by 28%.Egypt is moving forward with plans to set up two industrial zones in Libya with investments of USD250 million, with 22 local players have already expressed interest in setting up shop in the new zones and more are expected to follow in their footsteps.The government plans to increase domestic wheat purchases from farmers by around 11% y-o-y to 4 million tons during the harvest season starting mid-April.The House of Representatives approved the agreement concluded between the Egyptian government and the French Development Agency, providing a loan worth EUR70 million and a grant of EUR800k for the project to establish the Al-Rubiki - 10th of Ramadan – Belbeis railway.Sky Tower for Real Estate Development, in which EMFD holds a stake, signed a partnership agreement with Golden Coast for Hotels, Resorts, and Entertainment Projects to develop a fully-integrated tourism project on the Red Sea.BTFH signed a share purchase agreement to acquire a majority stake in Baobab Group.FRA issued new regulations on insurance companies' investments, giving them sixmonths to meet the new requirements. •             They will need to invest at least 5% of their free funds in open-ended funds that invest in EGX-listed equities. •             They will also invest at least 2.5% of their paid-up capital in open-ended funds that invest in EGX-listed stocks.•             New investments cannot exceed 30% of their total funds allocated for investment.  •             Personal insurance companies can invest up to 10% of their investment-allocated funds in real estate investment funds.

The IMF's Executive Board is to sign off on Egypt's fourth review “in the coming weeks,” IMF Communications Director Julie Kozack said in a briefing to the press. The meeting will also see the board look into a set of fresh funds under the IMF's Resilience and Sustainability Facility.BP's recent discovery at its King Mariout offshore concession could hold up to 4 trillion cubic feet of natural gas, according to early estimates cited by two unnamed government officials that spoke to Asharq Business.  The Industry Ministry has allocated 30 million sqm in Ras El Hekma for an industrial zone, Industry Ministry Kamel El Wazir said, adding that the Ministry is working on setting up three other zones across the country, in Borg El Arab, New Alamein, and Matrouh. The government has also broken ground on the Ras El Hekma airport.According to the Minister of Finance, Egypt will launch a customs facilitation package within weeks to increase competitiveness and ease of goods release, in addition to launching a facilitation package related to real estate tax before the end of this year.Trade balance deficit rose 0.5% y/y to USD3.7 billion in November 2024.The EGX and the European Bank for Reconstruction and Development (EBRD) are working together on a project to boost market liquidity in the EGX. The National Wages Council will meet later today to discuss the minimum wage for the private sector.The Finance Ministry is considering issuing a bookkeeping scheme to account for the FX rate difference between the official and parallel markets for profit earned before the Central Bank of Egypt liberalized the exchange rate in March 2024, with the Ministry currently preparing tax budgets for the upcoming corporate tax filing season, which ends on 30 April.COMI has cut interest rates on its local currency, high-yield CDs by 3 percentage points.  Emirati and Kuwaiti financial institutions have begun due diligence to acquire at least 60% of Banque du Caire (BdC). The Financial Regulatory Authority (FRA) has raised the borrowing limit for micro enterprises by 10% to EGP266k.  ORAS's Orascom Industrial Parks is setting up a 3.5 million sqm industrial zone in Ain Sokhna with projected investments of EGP7 billion over the next ten years. Egypt plans to increase its aluminum production by 200k tons annually within three years, bringing total production to 510k tons, according to Minister of Public Enterprises. This expansion aims to meet domestic market needs and export the surplus. The Minister added that a new project is underway with the private sector to establish a new aluminum plant with modern furnaces, with a production capacity of 600k tons per year.The Ministry of Public Enterprises is developing EGCH with investments of USD400 million within three years. The development will include the production of nitrates, which will add value to the products.French pharma giant Servier's Egypt arm has inaugurated a new packaging and filling line at its 6th of October facility. With this expansion, Servier's total investments in Egypt reaches EGP1.6 billion.

The new social protection package will be announced “within days,” Prime Minister said. The package of minimum wage hikes and pension increases will come into effect starting the next fiscal year. Net foreign reserves inched up to USD47.3 billion at the end of January 2025, marking a USD156 million increase from December.Net foreign assets in Egypt's banking sector reached USD5.23 billion in December, down 12.2% from USD5.96 billion in November. The decline was driven by a widening deficit in the net foreign assets of commercial banks, which widened to USD6.4 billion in December, compared to USD5.8 billion in November.Energy giant BP has made a fresh discovery off the North Coast in its King Mariout offshore concession, with initial reports suggesting the site could yield both gas and oil. Cabinet approved five concession agreements that will see no less than USD225.3 million invested to drill at least 40 wells in areas including the Eastern and Western Deserts.US energy giant ExxonMobil is reportedly planning to dig two new exploratory wells in its Cairo and Masry offshore concessions in 1Q26, with an initial investment of USD240 million, an unnamed government official said.Egypt is reportedly planning to increase crude oil production by 18% y-o-y by the end of the current fiscal year, an unnamed government official told Al Arabiya. Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024, hitting 24 tons, according to the World Gold Council's gold demand trend report for last year.The government is looking to see exports growing at an annual rate of 15-20% to achieve a trade surplus before 2030, Madbouly said, pointing to agriculture exports, which hit a record USD10.6 billion last year.The European Bank for Reconstruction and Development (EBRD) the Finance Ministry inked a cooperation agreement that will see them set up a EUR10 million fund — dubbed the Egypt Account — to finance feasibility studies and advisory services for projects being set up under the public-private partnership model.The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank, signed Egypt's work plan for 2025, under which it will provide USD100 million in funds to support private sector projects in the country.The World Bank is preparing for the second phase of Egypt's budget support program to be paid during this year, after the completion of the first phase in the middle of last year, worth USD500 million, according to the World Bank's regional director, adding that the total value of the program is USD3 billion, as part of a package to support Egypt announced by the World Bank in March 2024 worth USD6 billion, half of which is allocated to support the general budget and the other half to support the private sector.CIEB 4Q24 consolidated bottom line recorded EGP1,944 million (+4% q/q, +44% y/y), bringing FY24 bottom line to EGP8,030 million (+55% y/y, and perfectly in line with Al Ahly Pharos estimate of EGP8,039 million). CIEB is currently trading at P/E25 of 3.1x (based on bottom line post minority and appropriations) and P/B25 of 0.9x. SWDY opened a EGP2 billion cable factory at its subsidiary Elsewedy Industrial Development's Industrial zone in the Tenth of Ramadan. The factory will have a production capacity of 4 million km of fiber-optic cables and 200k km of copper communication cables.EGCH decided to hold an auction to sell unutilized land plots in Aswan with total area of around 35k sqm. According to AMIC, auto sales increased by 24.6% YoY and 19.7% MoM to reach 13k vehicles in December. EGTS's court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 4 March 2025.

Kuwait's Ali Alghanim & Sons Group is looking into setting up an insulin factory in Egypt in partnership with foreign companies as part of its expansion in Egypt. The group is also exploring the development of a tourist resort overlooking the Red Sea.The government holding intensive discussions to resolve the issue of the long-awaited capital gains tax on EGX transactions, and even look for alternatives, a government source said. Egypt has reportedly signed agreements with Shell and Total Energies to purchase a total of 60 LNG shipments in 2025 for around USD3 bn, an unnamed government said.Planning and International Cooperation Minister Rania Al Mashat touted the Suez Canal Economic Zone (SCZone) as a potential hub for Ukrainian grain storage and re-export to Africa during a high-level meeting in Cairo with Ukrainian Agrarian Policy and Food Minister, according to a ministry statement. She also invited international partners to visit the area to explore its potential as a logistics and manufacturing hub.The Liberian crude oil tanker Chrysalis passed through the Suez Canal yesterday for the first time since being targeted in a Houthi attack last July, according to a statement from the Suez Canal Authority. The CBE sold USD1.06 billion in T-bills with a 364-day maturity period, at an average yield of 4.25%.The CEO of the International Islamic Trade Finance Corporation announced that a program was signed with the Egyptian government to provide financing facilities to support petroleum products and food security worth USD1.5 billion, adding that the financing will be allocated primarily to the EGPC and GASC.EFIC released 4Q24 unaudited standalone results posting a 169% YoY (+258% QoQ) to EGP950.5 million, bringing FY24 net profit to EGP1.5 billion, a 161% YoY.Raya Auto plans to establish a USD 50 mn EV assembly plant in Egypt next year, CEO of the Raya Holding automotive unit Mohamed El Naggar told Asharq Business. Head of the Egyptian Drug Authority stated their strategic plan for building inventories for six months to the most important medicine's active ingredients, as a part of solving the scarcity crisis in the Egyptian drug market. Head of suez canal authority Ossama Rabie declared the accomplishment of the canal duplication project and its readiness for operations. Rabie added that the authority issued the navigational charts for the canal.

Our take on Trump's return to the White House, becoming the 47th President of the United States: One of the main channels that might affect Egypt's economy is the fact that Trump's main economic policies might cause an upward pressure on the USD globally. Trump is pro expansionary fiscal policies, and likely to try to boost businesses in the US through tax cuts. This, in turn, might imply some inflationary pressures, which means the Fed might need to revise its pace of easing, that easing was long awaited for by the EMs in general to relief some of the pressure on their currencies. Besides, Trump's expected trade protectionism through tariffs means lower pressure on US current account, which also might mean a stronger dollar. In addition, such kind of trade policies might trigger some fears of a negative impact on the Chinese economy, causing some risk aversion in global financial markets that will eventually affect EMs cost of borrowing.The head of the EGX said that six temporarily listed companies will offer their shares on the stock exchange during H1 2025. Regarding the offering of the companies “Safi” and “Wataniya”, he said that the procedures for listing the two companies have not yet begun, but we are anticipating them soon.Around 500 Turkish garment manufacturers expressed interest in investing in Egypt last year with the total proposed investments amounting to around USD 5 bn, head of the Federation of Egyptian Industry's apparel chamber said. Some 50 Turkish companies have already taken steps to move their operations over to Egypt, investing around USD 150 mn.Government sources said that the average bond issuances in the international markets range between USD2.5 billion and USD3 billion annually until 2028.The government is in discussions with the private sector to finalize studies on setting a more profitable feed-in tariff rate, the set price that the government pays for the electricity projects generate, for its initial phase of waste-to-energy (WtE) projects, a government source said. The new tariffs aim to ensure a good return on investment for companies currently making investments in the sector.China's JA Solar will supply 1.25 GW worth of solar panels for AMEA Power's Abydos 2 project, located in Aswan's Benban, under an agreement with project builder China Energy Engineering Corporation, the solar panel manufacturer said in a statement. No details about the cost of the agreement were disclosed.UAE-based Nas Investments Holding submitted a mandatory tender offer to acquire an additional 57.5% stake in EGX-listed fertilizers player EgyFert (SMFR). The move would bring Nas' total holding in the company to 90% through the acquisition of an additional 5.5 million shares. If Nas hits its acquisition target, the total transaction would be valued at EGP522.5 million, with Nas paying EGP95.0 per EgyFert share, implying a 2024e annualized PE of 8.5x. Nas did not put forward a minimum acceptance threshold.Misr Petroleum will establish and revamp 70 fueling and service stations nationwide in FY25/26, building on the 33 stations upgraded in 2H24, Misr Petroleum Chairman Mohamed Maged Bakheet said. The Financial Regulatory Authority (FRA) has issued a decision setting new increased minimum capital requirements for companies operating in the ins. sector, in line with the Unified Ins. Law ratified last year. TSWDY reached financial close on its 50MW/100MWh battery energy storage system project in Greece. TEGTS's court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 28 January 2025.

Hassan Allam Holding and ADP France have submitted a joint proposal to manage and operate Egyptian airports.UAE-based EV infrastructure company Zero Carbon is currently undertaking feasibility studies ahead of a launch in the Egyptian market.Egypt is planning to carry on importing liquefied natural gas until the country closes the gap between domestic production and consumption in either 2029 or 2030.MPs are expected to give their final approval to a government-drafted cash-based subsidies bill aimed at supporting citizens living under the poverty line.MPs are also set to decide on five draft agreements authorizing the Oil Ministry to partner with foreign companies for oil and gas exploration.International financial institutions invested nearly USD890 million in Egypt's private sector during November, with climate finance, SMEs, sustainable tourism, and renewable energy projects.The General Authority for Investment and Freezones (GAFI) is working with the World Bank and relevant ministries to develop a national strategy for foreign direct investment from 2025-30, with the complete strategy to be announced in “the coming months”.The Central Bank sold EGP60.4 billion worth of three-month t-bills with an average yield of 31.20%, up 0.28 percentage points from its last auction and surpassing the EGP40 billion target. UAE company Green Coast aims to pump investments worth USD50 million into the Egyptian market over the next three years. Finance Minister said that EGP10 billion due to pharmaceutical companies will be provided before the end of this year. The Central Bank of Egypt will issue today one-year treasury bills denominated in foreign currency, worth USD900 million. Egypt is looking forward to increasing the volume of German investments by 20% during the next year, to reach the range of USD3.6 billion.We raised our FV for EFIC from EGP89.00/share to EGP165.91/share and maintain our Overweight recommendation of the stock. EFIC is currently trading at a 2025f PE of 4.7x and EV/EBITDA of 4.0x.Egypt Gas announced signing the shareholder agreement to establish a company for producing polyethylene pipes with a total capital of EGP340 million. The Swiss company, George Fisher, will hold 74% of the new company, Egypt Gas will hold 25%, and the Emirati Corys company will hold the remaining 1%.HELI (FV: EGP18.84, OW) shareholders voted to postpone the capital increase.MASR (FV: EGP8.11, OW) signed an MoU with CCAP subsidiary, ASEC Automation, to construct the second phase of infrastructure and road networks in Sarai, with investments exceeding EGP580.0 million.CIRA reported 4Q24 financial results. Bottom line recorded loss of EGP374 million in 4Q23/24. This brought FY23/24 net profit to EGP35.6 million, a decline of 71% YoY. CIRA is currently trading at FY24/25f P/E of 25.2x and EV/EBITDA of 7.6x.DSCW reported 3Q24 results, showing net profit of EGP319 million (+105.1% YoY, -12.9% QoQ). This brought 9M24 net profit to EGP803 million, a growth of 1.9x YoY. DSCW is currently trading at 2025f P/E of 3.2x and EV/EBITDA of 3.6x.OFH reported 3Q24 net loss of EGP1.5 million compared to net profit of EGP26.4 million in 2Q24 and net loss of EGP0.9 million in 3Q23, leading to a 9M24 net income of EGP2.4 million (-96% y/y).Banque du Caire recorded a net profit during 9M24 of EGP8.6 billion (+90.2% y/y). The National Bank of Egypt recorded a net profit of EGP70.6 billion during 1H24 (+185% y/y). Weekly Commodities Update

The CBE's MPC is scheduled to meet today. We remind you that we expect the CBE to prefer to hold rates unchanged in today's meeting due to persistent inflationary pressures, among other factors.Senior private and public sector figures from Egypt and the UAE inked numerous investments:Cabinet greenlit two power purchase agreements for two separate solar projects for a consortium made up of the UAE's Masdar, Hassan Allam Utilities, and Infinity Power.Cabinet approved a draft decision to establish a USD10 million private freezone for ready-made garments in Sadat City. Sources in the Ministry of Electricity revealed that USD3.5 billion are expected as investments in the renewable energy plant project located in Zaafrana.Egypt's fourth IMF review is set to wrap by tomorrow, with only procedural stages left before the Fund's Executive Board formally greenlights the decision that will unlock USD1.3 billion in financing. Sources said that although the Suez Canal Authority's contributions to the state coffers plummeted 92% y-o-y to EGP1.0 billion in the first quarter of FY24-25, the shortfall was partially offset by a 108% surge in revenues from special funds.Turkish Investment group Erciyas Holding is looking to establish a USD60 million oil, natural gas, and water pipelines factory in Egypt.Turkish clothing manufacturer Eroglu Holding has broken ground on its USD51 million garments factory in the Qantara West Industrial Zone.The government is getting ready to launch the EGP115 billion second phase of the universal health insurance system in the next fiscal year.Egypt may need to seek alternatives to Russian wheat, as Russian farmers are turning their backs against the grain, saying they will sow less wheat in favor of higher-margin crops like peas, lentils, and sunflowers, Reuters reports. HRHO 3Q24 net profit after tax and minority interest recorded EGP697 million (-12% q/q, +76% y/y), bringing 9M24 attributable bottom line to EGP3,309 million (+97% y/y). The company is currently trading at 7.7x P/E25 and 0.9x P/B25.The coverage rate of the private offering of United Bank on the EGX reached 1.06 times yesterday, Wednesday, on the first day of opening the subscription door, which lasts for five days, while the public subscription starts on November 27 until December 3.ValU Consumer Finance Company's financing recorded EGP1 billion during the first half of November, which witnessed the White Friday offers, according to Walid Hassouna, the company's CEO. CANA and Mint Real Estate Assets, a joint venture between Al Ahly Sabbour and the National Bank of Egypt, have set up a new real estate development company called Anchors for Real Estate Development. CCAP's consolidated revenue grew 64% YoY to EGP38.2 billion in 2Q24 supported by solid performances across all subsidiaries. However, the Group's net loss expanded by 255% YoY to EGP1.4 billion during the quarter as a result of an increase in non-operating expenses, including revaluation of Allied Corp and TAQA Arabia shares, as well as legal costs associated with the restructuring and settlement of bank debt.ECAP released weak 3Q24 financial results, with net profit dropping to only EGP2.6 million (-96% YoY, -97% QoQ) on the back of a contraction in operating margins, a surge in net interest expense, along with a FX loss of EGP32.8 million. The stock is trading at FY25e P/E of 6.4x.The European Bank for Reconstruction and Development (EBRD) is set to provide some USD21.3 million in new funding to the Red Sea Wind Energy (RSWE) — a JV between ORAS, France's Engie, and Japan's Toyota Tsusho/Eurus Energy. 

Cabinet spokesperson named banking, airports, pharma, plastics, glass, and petrochemicals as among the sectors where we will see stakes in state-owned entities offered up by the end of June. In addition, there are another 15 stake offerings in the pipeline after the current fiscal year. The Private Sector Partnership Unit in the Ministry of Finance intends to launch six projects through PPP, during 1Q25.The government decided to transfer a number of renewable energy projects that will produce green hydrogen from areas in the east and west of the Nile to three new sites near the Suez Canal Economic Zone, for cost-related reasons.The British company United Oil and Gas announced the completion of the legal procedures related to its exit from the 22% stake in Abu Sinan concession in Egypt.The Ministry of Communications aims to reach USD9 billion in outsourcing industry exports by the end of 2026, up from USD3.7 billion currently.The Tax Authority has canceled the imposition of VAT on services provided by commercial agents and legal representatives of foreign companies and branches of foreign companies operating in Egypt, such as marketing and promotion.MPs are back in the House again today to resume discussions over draft laws that pertain to refugees, the newly amended Criminal Procedures Law, and urban development plans.TMGH (FV: EGP75.00, OW) achieved strong 3Q24 results. Net profit in 3Q24 increased 118.9% y/y and 64.1% q/q to EGP2.5 billion, taking 9M24 net profit up 136.5% y/y to EGP6.3 billion. PHDC (FV: EGP8.78, OW) achieved stellar 3Q24 results. Net profit in 3Q24 reached EGP648.9 million, up 47.0% y/y and down 7.5% q/q, taking 9M24 net profit up 124.2% y/y to EGP2.4 billion.EMFD's net profit in 3Q24 increased 80.0% y/y and 41.0% q/q to EGP2.7 billion, bringing 9M24 net profit up 107.4% y/y to EGP10.3 billion.EMFD's Board approved the IFA report valuing EMFD at EGP10.71/share and Albro North Coast for Developments at EGP14.55/share, with an equity swap ratio of 1.359 shares in the increased capital of EMFD for each share in the capital of Albro North Coast for Developments. This will result in a total issuance of 917.6 million shares in the increased capital of EMFD in exchange for acquiring 675.0 million shares in the capital of Albro North Coast for Developments.We upgraded our FV for JUFO to EGP52.53/share, reiterating our Overweight recommendation. JUFO is currently trading at 2025f P/E of 8.9x and EV/EBITDA of 5.7x.ORWE reported 3Q24 financial results. Net profit of EGP701 million (+8.0% YoY, -23.4% QoQ). This brought 9M24 bottom line to EGP2,173 million (+57.2% YoY). ORWE is currently trading at 2025f P/E of 5.8x and EV/EBITDA of 5.3x.EKHO released 3Q24 consolidated financial results. Net profit dropped 5% YoY (+24% QoQ) to USD34 million. In 9M24, net profit declined 9% YoY to USD124 million EKHO is currently trading on 2025f PE of 7.2x and EV/EBITDA of 3.9x. CNFN's 3Q24 consolidated bottom line expanded to EGP235 million (+24% y/y, +79% q/q). 9M24 net profit recorded EGP410 million (-6%y/y). ValU raised EGP667.3 million in a securitized bond issuance.MNT Halan is considering listing on the EGX in 12-24 months.ARCC's Board proposed a cash dividend distribution of EGP1.585/share for FY23, pending general assembly approval. This implies a payout ratio of 86% and a dividend yield of 11%.RAYA recorded net profit of EGP1.3 billion in 9M24 (+160% YoY). RAYA has tapped Attijariwafa Bank as its financial advisor and Baker McKenzie as its legal counsel for the transaction that will see Africa-focused and London-based PE outfit Helios Investment Partners acquire 49% of subsidiary Raya Foods.Weekly Commodities Update

The Supreme Constitutional Court ruled on Saturday that the 7% flat rate in the Old Rental Law for residential properties is unconstitutional and called on the Egyptian parliament to amend the law.The US Federal Reserve cut interest rates for the second time, this time by 25 bps, bringing them to 4.5%-4.75%.The Oil Ministry launched the Sustainable Aviation Fuel Production Company, which will invest USD530 million to develop production facilities and integrate the facility with other petroleum companies in Alexandria governorate. US multinational conglomerate Honeywell has finished its feasibility study with the European Bank of Reconstruction and Development for SAF production in Egypt, according to a statement from the Ministry.Emirati oil and gas giant Dana Gas is waiting for USD24 million out of a total USD59 million of outstanding dues owed by the government to be paid before it launches a USD100 million project to develop production, the company said.Tourist footfall is expected to reach a record high of 15.3 million in 2024, increasing 5% YoY, according to a statement from the Tourism Ministry. An unnamed Chinese company is looking to set up a USD360 million tire factory in the Suez Canal Economic Zone (SCZone) in partnership with the state-owned Arab Organization for Industrialization (AOI). Austrian wood panels manufacturer Kronospan wants to partner with Nag Hamady Fiberboard Company to set up a 150k sqm production line in the Egyptian company's existing factory to produce MDF, according to a statement by the Industry Ministry. Egypt is committed to repaying loans worth USD3 billion to Gulf banks in November. Egypt will repay some USD1.3 billion in USD-denominated bonds today for debt issued in 2016, according to Al Arabiya, citing unnamed sources. The Shalatin Mineral Resources Company, affiliated with the Ministry of Petroleum, aims to deliver gold to the CBE amounting to a ton by the end of this year 2024.ISPH reported positive 3Q24 results: Bottom line amounted to EGP185 million, up 49.8% QoQ and 3.4x YoY. 9M24 bottom line came in at EGP407 million, up 1.3x YoY. ISPH is trading at 2025 multiples of EV/EBITDA of 3.0x and P/E of 9.8x.EBRD gave its initial approval to a USD120 million equity bridge loan to Obelisk Solar — a special purpose vehicle owned by Norway's Scatec — to fund part of Scatec's 1-GW solar power plant in Nagaa Hammadi to power EGAL's industrial complex with 2 GW of green energy.Ministry of Electricity set the feed-in tariff for solar panels using the battery energy storage system at USD0.023/kWh for privately-owned solar panels and USD0.014/kWh for state-owned solar panels. CCAP's subsidiary, Egyptian Refining Company (ERC), plans to repay USD200 million of its outstanding USD742 million debt by December, company head Mohamed Saad stated. EFID announced the signing of a toll manufacturing agreement in the biscuit business with Misr Food Additives (MIFAD). Phillip Morris increased the prices of its tobacco products for the the third time this year, raising prices by EGP5 across its offerings in the local market.

The CBE has released the Balance of Payment (BoP)'s performance report for FY2023/24. Key points are:The overall BoP recorded a surplus of c.USD9.7 bn during FY 2023/24.Egypt's current account deficit more than quadrupled, surging to USD 20.8 bn.The oil trade balance surged to USD8 bn deficit in FY2023/24, compared to a USD 410 mn surplus in FY2022/23.The non-oil trade deficit was flat, registering USD31.9 bn in FY2023/24.Suez Canal lost a quarter of its previous year revenues, triggered by regional disruptions, falling by 24.3% in FY2023/24, recording USD6.6 bn.Remittances from Egyptians abroad were almost flat as well, recording USD21.94 bn in FY2023/24.Tourism revenues increased by 5.5% YoY, to USD 14.38 bn in FY2023/24.Net FDI inflows more than tripled YoY recording a record-high USD46 bn in FY2023/24 fueled by Ras Al-Hekma inflows.Net portfolio inflows recorded a net inflow of USD 14.5 bn during FY2023/24, compared to a net outflow of USD3.8 bn in the previous year. The IMF is likely to conduct the fourth review of our USD8 bn loan program in November, a government source said. The review that will unlock a USD1.3 bn tranche was initially scheduled for September, before being delayed to October.Egyptian International Motors plans to invest some USD100 mn in its vehicle manufacturing business (assembling, marketing, and exporting vehicles) as part of a broader push to localize Egypt's auto industry. Automotive player Stellantis plans to invest EUR116 mn in the local manufacture of four vehicle models expected to hit the streets over the course of three years.Egypt pulled in some EGP1.2 bn over the last month and a half by cracking down on electricity theft, according to a cabinet statement.The Suez Canal Economic Zone (SCZone) and the Egyptian Holding Company for Silos and Storage are developing a grain complex for the handling, processing, and storage of grains, with initial investments of USD153 mn earmarked for the first and second phases.Norwegian renewables giant Scatec, Belgium's John Cockerill, John Cockerill-Technip JV Rely, and France's SLB have plans to set up a factory to manufacture electrolyzers for green hydrogen production in Ain Sokhna, according to a statement.ORHD launched Tuban which spans over 1.0 million sqm in the heart of El Gouna.EGAL's board of directors proposed a cash dividend distribution of EGP3.00/share for FY2023/24, implying a payout ratio of 13.3% and a dividend yield of 2.5%.Emirates National Oil Company subsidiary Dragon Oil wants to up its production from the Al Wasl field, CEO Ali Al Jarwan told CNBC Arabia. The company also plans to acquire more concessions in Egypt and Iraq.

Chinese appliance manufacturer Haier laid the foundation stone for the USD40 million second phase of its eco-industrial complex in Tenth of Ramadan City. With a production capacity of 300k refrigerators and deep freezers and offer around 1k jobs and is scheduled to begin production in the last quarter of 2025.Alexandria for Industrial Development (AID), a JV between Alex Steel and Catalyst Private Equity, is in negotiations with foreign investors to build USD120 million worth of factories in the Suez Canal Economic Zone under turnkey contracts.The Tourism Ministry is in talks with China's Chongqing Gaund Holding Group over the construction, management, and operation of a number of luxury floating Nile hotels.The Egyptian government paid USD1.2 billion of the arrears dues of foreign oil companies of USD3.2 billion last week instead of next October, in efforts to increase natural gas production in the country.A Kuwaiti investor intends to invest in the establishment of an integrated project in the chemicals sector in the Baghdadi Industrial Zone of Luxor Governorate.US Federal Reserve officials signaled the possibility of more big rate cuts this year, with Chicago Fed President Austan Goolsbee saying that the current benchmark interest rate was “hundreds” of basis points above the neutral level.The CBE sold nearly EGP54.5 billion in EGP-denominated, three-year treasury bonds yesterday, over 10x its target of EGP5 billion, with an average interest rate of 24.8%, down from 25.2% in the previous auction.The long-planned merger between state-owned Egyptian Ethylene and Derivatives Company (Ethydco) and SKPC may finally be getting the green light, with unnamed sources telling Al Borsa that the agreement is expected to go through by the end of October after the FRA approves the share swap factor between the companies.Saudi Arabia's Public Investment Fund (PIF) is reportedly looking into acquiring a stake in state-owned firm Egypt Gas, Al Mal reports. EGAS succeeded in signing 11 new oil and gas exploration agreements with international oil companies during FY23/24 with investments worth a minimum of USD925 million.United Bank is heading to the Gulf, Europe, and the US to promote upcoming IPO, slated for 1Q 2025. Up to 49% of the bank could end up on the EGX. Businessman Nagib Sawiris revealed that the volume of OIH's investments in gold mines reaches $1.5 billion.EFIH announced today that its subsidiary eAswaaq, along with Post for Investment, a subsidiary of Egypt Post, have launched the “ECOM Africa” company. The company will develop and operate specialized electronic marketplaces targeting the African market. A local consortium will invest USD450 million to build, manage, and operate a 300k square meter dry bulk terminal in Dekheila Port under an initial agreement inked with the Alexandria Port Authority, according to a Transport Ministry statement. The consortium includes four local private and state-owned firms, Mediterraneo Egypt, Latt Trading and Shipping, a SWDY subsidiary, and the Transport Ministry's Holding Company for Maritime and Land Transport.

“The electricity will not be cut off again... and there will be no more load shedding,” Mostafa Madbouly said, adding that the government is working to secure the necessary energy shipments to keep the lights on 24/7.Our natural gas output will return to normal levels before June 2025, Madbouly said, adding that the dip in production was due to the government's inability to pay foreign companies their dues.The Saudi government's planned investment of USD5 billion in Egypt is separate from previous deposits at the Central Bank of Egypt, Madbouly said. Madbouly confirmed that the government is working on an investment plan to offer the Red Sea's Ras Banas to private sector players in a transaction similar to ADQ's Ras El Hekma agreement.Finance Minister Ahmed Kouchouk said Egypt was set to issue USD3 billion in Eurobonds and other debt instruments in the current fiscal year ending June. Egypt will receive USD129 million from the US government as part of its “commitment to advancing joint US-Egypt priorities,” according to a readout from the US embassy in Cairo.Rice, sugar, blended oil, fava beans, white cheese, milk, and pasta will continue to be designated as strategic commodities for another six months after the cabinet approved the decision. American company Capricorn resumed drilling programs in Egypt during 1H24. The company said that it received USD93 million of its dues during that period, compared to USD50 million it received in the same period of 2023.Sources in the Ministry of Electricity said that increasing diesel prices for power stations will achieve savings estimated at about EGP3 billion per month.The government is looking to sell an additional 10% of its stake in ETEL before the end of this year, according to local press.We raised our FV of FWRY to EGP13.00/share, up from EGP6.90/share, and maintain our Overweight recommendation. FWRY is currently trading at an attractive 2025f P/E of 15.7x, significantly below its 3-year historical average of 39.6x. For more details, kindly check our note published on Thursday.According to local media, EMFD plans to allocate investments of USD1.0 billion in Egypt in 2025, is interested in expanding to the Red Sea, and is open to expanding to Ras El Hekma if land is offered for a project.According to local media, the Egyptian Competition Authority intends to extend the decision allowing cement companies to cut their production “the quota system” for another year starting October. CIRA's general assembly approved cash dividends distribution of EGP0.26/share for FY23, implying dividend payout ratio of 120% and dividend yield of 1.9%.The government has resumed negotiations for the sale of the state's remaining 20% stake in Alexbank to Italy's Intesa Sanpaolo Group, which currently holds the remaining 80%. Banque Misr CEO Mohamed El Etreby is becoming the CEO of the National Bank of Egypt (NBE), while current NBE president Hisham Okasha is taking El Etreby's place at Banque Misr. Former Banque Misr chairman Mohamed Barakat has been appointed non-executive chairman of NBE and former EBRD Vice President and CFO Soha El Turky will join the NBE as vice president. The total investments of insurance companies and insurance funds in treasury bills decreased to EGP130.796 billion by the end of June 2024, compared to EGP241.25 billion by the end of last May. Cabinet greenlit a draft presidential decree regarding a 2021 financing agreement with the German government that grants funds to support MSMEs and allow them to create more jobs.The government intends to achieve pharmaceutical exports of USD1.5 billion in FY24/25, up from USD1.0 billion in FY23/24, according to local press.

*Key news articles for today* The headline PMI rose in August to 50.4, rising from 49.7 in July, to signal the first improvement in the health of the non-oil private sector since November 2020.The industry, transport, and investment ministries are mulling the creation of a freezone for African investors as part of the government's long-term goal of increasing trade with the continent.The IMF revealed that Egypt aims to gradually reduce government guarantees in the coming period.Saudi Arabia and Libya have financed the purchase of gas cargoes worth at least USD200 million to help Egypt ease its energy crisis.The Italian Eni is planning to increase the production of “Zohr” field to nearly two billion cubic feet per day early next year.The Ministry of Petroleum intends to import between 6-8 LNG shipments in September.The Egyptian General Petroleum Corporation (EGPC) reached an agreement with the Egyptian Railways Authority to pay off a debt owed to the authority amounting to EGP6 billion over 5 years. Indonesia plans to ink USD3.5 billion worth of trade and investment agreements with African countries — with a particular focus on Egypt, Kenya, South Africa, and Nigeria.The CBE sold some EGP23.2 billion of EGP-denominated three-year treasury bonds yesterday — over 3.5 times its target of EGP5 billion, with an average interest rate of 25.2%.The government is planning to up its strategic wheat reserves from six-months' supply to nine months if it secures the necessary funds.EGCH released 4Q23/24 unaudited financial indicators posting net losses worth EGP32 million during 4Q23/24 as compared to a net profit of EGP46 million in 4Q22/23 and a net loss of EGP411 million in 3Q23/24 due to growing interest expenses. On an annual basis, net profit declined by 94% YoY to EGP70 million in FY23/24, from EGP1.2 billion in FY22/23. EGCH is currently trading at a FY2024/2025 PE of 20.5x.The government plans to limit providing subsidized fertilizers to 8 strategic crops only in order rationalize fertilizers subsidies.Indian companies study injecting investments in Egypt fertilizers, green hydrogen and food industries. TMGH expects its USD revenue to reach USD856.0 million by 2028, supported by the company's hotel portfolio.OCDI launched Ogami, its project situated on 440 feddans in Ras El Hekma on the North Coast. The project offers 1,900 units and is home to the Nobu Hotel and Residences.HRHO have launched asset servicing arrangement and custody arrangement services, which aim to address the unique challenges faced by high-net-worth individuals, family offices, and small- to mid-sized funds in accessing custody arrangement services. 

Work is underway to make it possible for the government to commit to monthly payments to foreign companies working in the oil and gas sector, according to a cabinet statement, in a bid to boost investor appetite.The Finance Ministry will set up a central unit to facilitate customs and tax procedures for companies involved in automotive manufacturing under a decision issued by the Finance Minister.American power tool manufacturer Black+Decker is in talks with the General Authority for Investment and Free Zones (GAFI) to set up a factory in Egypt, according to a statement.Egypt will complete about 30% of the total Dabaa nuclear power plant project by the end of this year, according to the General Director of the Russian company Rosatom.The New Development Bank is considering providing financing to Egypt worth USD300 million. The funding will be directed to projects such as energy efficiency, clean energy, transportation infrastructure, water and sanitation, and digital infrastructure. Egypt's cement production jumped by 33.7% during the 7M2024 to 29.7 million tons, compared to 22.2 million tons in the same period last year.Egypt's imports of Israeli natural gas increased by 18% during current August, reaching approximately one bcf per day currently, compared to 850 mcf per day last July.ORAS reported its consolidated 2Q24 results with net income attributable to shareholders came in at USD19.3 million (-69% YoY, -58% QoQ). This brings 1H24 bottom-line to USD65.4 million, up 34% YoY. ORAS is currently trading at FY25e PE of 6.7x, PE (excluding cash) of 1.9x.18 cement producers have filed a request with the Egyptian Competition Authority (ECA) to extend the quota system for another year. The system, which entails cement production cuts, expired on 23 July.ESRS has submitted a suspension request for the 3 weeks, starting 28 August 2024, with respect to its GDRs traded in LSE. By the end of the requested suspension the Company expects that the IFRS audit (an LSE requirement) of its 2023 financial statements will have been concluded and posted in LSE. The Company will request a restoration of listing once the IFRS audited financial statements are posted.EFIC released 2Q24 consolidated financial results. Net profit increased by 69% YoY (-16% QoQ) to EGP360 million, due to absence of FX gains QoQ. On a half-year basis, net profit increased by 81% YoY to EGP788 million and a NPM of 19.8% in 1H24 versus 17.6% in 1H23. EFIC is currently trading at a 2024f PE of 5.8x Fertiglobe has inked an EUR397 million contract with H2Global subsidiary HINT.CO to supply green ammonia from its facilities in Egypt to the European Union. The agreement will see Fertiglobe supply H2Global with up to 19.5k tons of green ammonia annually beginning in 2027, with total deliveries expected to rise to a cumulative 397k tons by 2033. Fertiglobe will source the green hydrogen it needs to produce green ammonia from Egypt Green Hydrogen. ANOPC will start the trial operations of its diesel complex in Assiyut during 2025. The project's investments reach USD3 billion.TCI, the Egyptian terminal operator unit of AD Ports, unloaded the first 75k metric tons of slag panamax vessel at adabya port by using lighterage operation.

Egypt's annual urban consumer price inflation eased to 25.7% in July from 27.5% in June. The Central Bank of Egypt is looking to raise some EUR600 million from auctioning off one-year EUR-denominated treasury bills. The hot money outflows last week, triggered by the global markets meltdown, represented no more than 7-8% of foreign investors' holdings of our debt instruments, Prime Minister Mostafa Madbouly said.Foreign investors sold some USD600 million worth of local debt instruments during the days leading up to last Monday as they poured their capital into safe-haven assets. Madbouly said that he had asked the Finance Ministry and the Central Bank to renew the subsidized loan program that targets industrial activity.The government is studying shifting tax brackets up in light of continued inflationary pressures.Egypt and the UAE inked an MoU to build a USD3 billion oil logistics zone at Al Hamra Port on the Mediterranean coast.Chinese electronics and household appliance manufacturer Hisense and the UAE's FBB Tech have inked a contract with Chinese industrial developer Egypt TEDA to establish a USD38 million electronic devices manufacturing facility in the China-Egypt TEDA trade zone in Ain Sokhna, according to a cabinet readout.The Electricity Ministry is close to inking an agreement with Emirati state-run renewables giant Masdar to build a 200 MW wind farm. The proposed project will cost USD180 million.Emirati firm Dana Gas has collected USD21 million in receivables from Egypt in 1H 2024, receiving 64% of its dues for the period.Local banks have started opening documentary credits to import a number of goods that were prohibited, after obtaining approvals from the Central Bank of Egypt.Food exports were up 25% y-o-y in 1H 2024 to record USD3.2 billion.The Oil Ministry targets finalizing a natural gas treatment station by mid 2025 to accommodate for the targeted increase in the Egyptian natural gas production. The project costs USD600 million. Energean found two layers full of gas and oil in an exploratory well in Egypt. It expects the well to produce 15 million cubic feet of gas per day, in addition to condensates, during the current week.Apache spent USD50 million on explorations in Egypt during 1H24.ORAS-Toyota consortium plans to execute a wind power station with a capacity of 3 GW, according to local media. The price of laying chicks jumped on the black market to EGP100 as a result of many producers selling laying parent chicks due to the lack of feed during the previous period.Non-banking financial services firm GlobalCorp has raised EGP1.32 billion in a securitized bond issuance. 

The EGP was changing hands at an average of 49.2 to the greenback — its lowest level since March. Foreign investors reportedly sold some USD600 mn worth of local debt instruments over the past two days.Foreign investments in Egyptian treasuries in July reportedly recorded USD900 mn.The Ministry of Petroleum aims to increase Egypt's production of natural gas by the end of this year to about 5 billion cubic feet per day, compared to about 4.6 billion cubic feet per day currently.The government is gearing up to announce a new package of social protection measures in September, with plans to implement it starting October.The Prime Minister confirmed the completion of the trial operation of the mechanized system to support exports, while currently preparing for its official launch.According to local press, an updated valuation study will be needed to determine the swap ratio of SKPC's deal to acquire Ethydco. Latest valuation study was approved back in July 2023.According to banking sources, banks decided to stop financing private sector fertilizer producers due to alarming default risks specially after natural gas supply interruption and factories stoppage. According to the sources, government-owned fertilizers producers are not affected by the decision. OCI Global has agreed to sell its low-carbon ammonia project in Texas to Australia's largest oil and gas developer Woodside Energy for USD2.35 billion. EAST's (FV: EGP29.26, OW) ordinary general assembly approved the sale of one of its factories in 6th of October. Egypt's food industries exports surged 25% YoY to USD3.2 billion in 1H24.According to data from the CBE, non-governmental foreign currency deposits in Egyptian banks rose USD2.4 billion in the first half of 2024, reaching USD53.0 billion by the end of June.The European Bank for Reconstruction and Development (EBRD) provided a USD20 million loan to CIEB to support small businesses and green investments. The Egyptian Credit Bureau (I-Score) has launched a market analytics platform for banks operating in the local banking system. Valu and solar energy company KarmSolar are setting up an EV charging network in New Cairo's District 5.

Saudi Arabia is looking to turn its deposits with the CBE into investment.The recently-approved USD820 million tranche from the IMF has officially landed in state coffers, Prime Minister Moustafa Madbouly said on Thursday.The government is reportedly planning to import up to 17 shipments of LNG in 4Q24 to ensure the lights stay on after an extended period of power cuts.The government is planning to set up an industrial zone focused on chemical and plastic industries in Alexandria.Local banks are gearing up to issue green bonds between this month and September, the European Bank for Reconstruction and Development (EBRD) managing director for the SEMED region said, adding that the multilateral lender plans to invest in them.Trade deficit decreased to about USD3.57 billion in May, compared to USD3.98 billion for the same month of the previous year, a decrease of 10.3% YoY.The net foreign asset surplus of the banking system shrank 10% to USD12.9 billion in June, down from USD14.3 billion in May. CIEB 2Q24 consolidated bottom line reached EGP1,924 million (-16% q/q, +49% y/y). The stock is currently trading at P/E24 of 3.4x and P/B24 of 1.3x.Customers can now receive and disburse transfers in both USD and EGP across 20 Banque du Caire branches, under a partnership between the bank and Western Union Egypt's official agent IBAG.Tasahel micro-finance, MNT-Halan subsidiary has almost finalized a Sukuk Mudarabah issuance this month. The issuance is around EGP6.5 billion and is awaiting FRA approval in the next two weeks.CNFN has partnered up the Women's Economic and Social Empowerment Program (WESEP), an initiative funded by the USAID and carried out by US-based NGO Pathfinder International, to boost financial inclusion and empower low-income women across Egypt.ABUK released 4Q23/24 unaudited financial indicators. Net profit declined 14% YoY (-83% QoQ) to EGP1.35 billion in 4Q23/24. FY23/24 net profit dropped 4% YoY to EGP13.50 billion. ABUK is currently trading at FY24/25f PE of 5.0x and EV/EBITDA of 3.8x.Egypt signed a shareholders' agreement to establish the Alexandria Supply Chain Company, which will set up a permanent marine facility at Dekheila Port in Alexandria. It represents a partnership between SKPC, GASCO, ECHEM, and Gamma Construction Company. Alexandria Port Authority of the Transport Ministry assigned to SWDY's subsidiary, Elsewedy Electric T&D, the execution of a power station to be completed within one year. According to local press, ISPH plans to sell EGP900 million worth of assets to settle part of its outstanding debt after banks demanded that the pharma distributor reduce its debt-to-equity ratio. DSCW has acquired an additional 16.7% stake in United Dyers, upping its ownership in the company to 99.3%. Auto sales in June rose 27.6% MoM to just over 8k vehicles.AJet, the low-cost carrier under Turkish Airlines, launched flights between Istanbul and Cairo during the summer season, with flights scheduled five days a week.

The IMF Executive Board has added the third review of Egypt's USD8 billion loan program — set for 29 July — back to its calendar.Egypt paid USD3 billion to the IMF in 1H2024 and intends to pay another USD257 million until the end of July.It is possible there were some malfunctions or increased pressure on the electricity grid due to the continued heatwave, which may have led to power cuts, Electricity Ministry spokesman said, as blackouts continue despite the promise of pause.COMI (FV: EGP100, OW) recorded a strong set of results where 2Q24 net profit post-minority interest recorded EGP15,623 million (+31% q/q, +96% y/y), bringing 1H24 bottom line to EGP26,547 million (+96% y/y). The stock is trading at P/E 2024 of 5.8x and P/B 2024 of 1.8x.Brokerage firms looking to trade carbon certificates must have a minimum issued and paid-up capital of EGP15 million to get the greenlight from the Financial Regulatory Authority.The Madbouly government is considering raising the price of subsidized fertilizers by 30% to EGP6,250/ton, according to local press.EMFD (FV: EGP6.74, OW) EGM approved the proposed acquisition of Albro North Coast for Developments and Sky Tower for Real Estate Development.Weekly Commodities Update |   | Last Price | WoW Change, % | Brent, USD/bbl | 82.6 | -2.8% | Diesel-HSFO Spread, USD/ton | 269 | -6.5% | Egypt Urea, USD/ton | 338 | 0.0% | Polyethylene, USD/ton | 1,060 | 0.0% | Polypropylene, USD/ton | 1,000 | 0.0% | Iron Ore 65%, USD/ton | 126 | -0.8% | Steel/Iron Ore Spreads, USD/ton | 389 | 0.0% | LME Copper Cash Price, USD/ton | 9,179 | -5.6% | LME Aluminum Cash Price, USD/ton | 2,295 | -5.0% | Egyptia Retail Cement, EGP/ton | 2,131 | 0.0% | Steam Coal FOB Newcastle Australia, USD/ton | 135 | 0.9% | SMP, USD/MT | 2,566 | -0.8% | Last price may vary week over week in some indices due to time difference

The CBE's Monetary Policy Committee decided to maintain the overnight deposit rate, overnight lending rate, and the rate of the main operation steady at 27.25%, 28.25%, and 27.75%, respectively. The MPC attributed the decision to the decline of the inflationary pressures.The Suez Canal Economic Zone (SCZone) saw its revenues grow 36% y-o-y to hit a record EGP8.3 billion during the fiscal year 2023-2024.Suez Canal revenues recorded USD315 million in June, dropping by 63% YoY, due to less traffic on disruptions in the Red Sea.Emirati sustainability firm Beeah plans to invest AED500 million (c. USD136 million) in Egypt's waste management and sustainability.The EGPC has launched a global tender to import approximately 740,000 tons of petroleum products for delivery next August.SWDY signed a contract to supply transformers for agricultural reclamation projects at a cost of EGP350 million.Shareholders who subscribed to Qalaa Holdings' debt buyback program will start receiving their debt notes starting 1 August until 15 August.Egypt's natural gas output stood at 4.3 bn cubic meters in May, one of the lowest levels in over six years. BP plans to invest some USD200 million to drill two new wells at its Raven natural gas field at the North Alexandria concession. Wesson Group's financial consultancy firm Lionsbridge is looking to set up a USD3 billion phosphoric acid production factory in the Abu Tartour port.MNT-Halan has raised USD157.7 million in a funding round that will contribute to the company's international expansion plans.

Minister Moustafa Madbouly delivered his new government's policy statement to the House of Representatives yesterday and delivered a speech to take MPs through the new government's agenda over the next three years. Main points included (1) an average of 5% growth throughout the entire three-year period, (2) Private investment should make up 60-65% of total investment by 2030, (3) increasing  FDI coming into the country by 14% every year, (4) Increasing the contribution of the industrial, agricultural, communications, and information technology sectors to account for 38% of GDP by the fiscal year ending in 2027, (5) increasing public revenues by 16% every year until the fiscal year ending in 2027.The CBE has released the Balance of Payment (BoP)'s performance report for 9M2023/24. Key points are: The overall BoP recorded a surplus of USD4.1 bn during 9M FY 2023-24, a significant increase from the USD 281.9 mn surplus recorded in the same period in the last fiscal year.Egypt's current account deficit has widened by 225% y-o-y to USD17.1 bn in the first nine months of FY 2023-24, up from USD5.3 bn in the same period in the last fiscal year.The oil trade balance recorded a USD5.1 bn deficit, compared to a USD1.7 bn surplus in the same period a year ago.The non-oil trade deficit improved by USD1.5 bn to USD23.7 bn.Suez Canal transit receipts fell 7.4% y-o-y to USD5.8 bn, with a sharp 57.2% y-o-y drop in the third quarter of the fiscal year after Houthi attacks on vessels passing the waterway started to pick up.Remittances from Egyptians abroad decreased by 17.1% y-o-y to USD14.5 bn during the nine-month period, especially that the EGP flotation didn't take place until early March.Tourism revenues increased by 5.3% y-o-y to USD10.9 bn, up from USD10.3 bn.As for the Financial Account:Net FDI inflows tripled y-o-y to USD23.7 bn, up from USD7.9 bn in the same period a year prior. The lion's share of the inflows came in the third quarter of the fiscal year, where Ras El Hekma agreement was made.Net portfolio inflows recorded USD14.6 bn in portfolio investments in 9M FY 2024-25, compared to a net outflow of USD3.4 bn in the previous year.Remittances from Egyptians working abroad increased in May to about USD2.7 billion, a growth of 74% y-o-y.The International Bank for Reconstruction and Development allocated a soft loan of USD144 million to contribute to the development, modernization and duplication of the “Bashteel - Al Ittihad - Itay El Baroud - Al Nahda” railway line. The Ministries of Industry and Transport are preparing to launch a global promotional campaign to exploit an area of 5 square kilometers of land and logistics areas behind the docks of Sokhna Port, to build a group strategic factories. QNBE recorded, a lower, but still strong 2Q24 net profit post-minority interest of EGP6,699 million (-5% q/q, +70% y/y) broadly in line with expectations, bringing 1H24 net profit to EGP13,742 million (+59% y/y). We remind you that QNBE is among our tier II top picks for 2024. The stock is currently trading at 2024 P/E of 2.9x. Banque du Caire has filed a request with the EGX to raise its authorized capital to EGP50 bn from EGP20 bn. The bank also wants to increase its issued and paid-up capital to EGP19 bn from EGP10 bn.The subscription period of ACTF (Act Financial) for retail investors is set to take place between 9-23 July, while institutional investors between 9-18 July. SWDY shareholders have put sell orders of a total of 427.7 million shares — around 20% of the company — to Electra Investment Holding in response to the latter's offer, whose validity ended yesterday. The voluntary offer submitted by Electra in May targeted a 15-24.5% stake in SWDY, which is over 76% collectively owned by the Elsewedy family.

At the end of the two-day Egypt-EU Investment conference, Prime Minister said that 29 agreements and MoUs had been signed over the event totaling EUR49 billion with EU-affiliated entities. On top of this, a further six agreements and MoUs with non-EU-affiliated entities that export to the EU inked a further EUR18.7 billion.Egypt is looking to raise its target for the renewable share of energy generation to 58% by 2040 in an updated strategy for expanding green power.The government has decided to postpone any hikes to electricity prices until September, a source from the Electricity Ministry said. The government has put off implementing the hikes until the electricity crisis is resolved, the source said.State IPO program is to ramp up again in October.Egypt received seven local and international offers to exploit eight government headquarters in the downtown Cairo area, Minister of Planning said.The new government lineup could be sworn in within a few days.Egypt's net foreign assets recorded their first surplus in over two years.The IMF has scheduled Egypt's third review under the EFF to be discussed by the Fund's executive board on 10 July. Subject to the Board's approval, Egypt will access USD820 million. The current account (CA) deficit inched up to USD7.46 billion in 3QFY2023/24, the highest on record for a single quarter, up from USD6.8 billion in 2Q, bringing up the total CA deficit for 9MFY2023/24 to c.USD17 billion.Remittances from Egyptians working abroad inched up to USD5 billion in 1Q2024 from USD4.91 billion in 4Q2023.Egyptian external debt decreased by the end of 1Q2024 by USD7.427 billion to reach USD160.607 billion, compared to USD168.034 billion in December. The Egyptian Mercantile Exchange (EMX) could begin offering wheat and sugar before the end of the year.The independent financial advisor finalized the study on SWDY's share fair value on 26 June 2024, and concluded that the fair value is EGP52.38/share. SWDY is setting up a copper factory in Saudi Arabia that will go live in six months' time.Steel rebar prices are stable in July at most of local steel manufacturers. The SFE inked a binding offtake agreement with ORAS, Scatec, and Fertiglobe to produce 100 MW of green hydrogen from its Ain Sokhna plant. The Ministry of Finance's Private Sector Partnership Unit is preparing to launch desalination plant projects worth USD2 billion in 4 to 6 plants as a first phase. SKPC started receiving feed gasses and gradually resumed operations in its factories on Thursday. A consortium of TAQA and France's Voltalia will build a USD3.5 billion green ammonia project in Ain Sokhna, under an agreement inked with SFE.The Egyptian Petrochemical Holding Company and MFPC, along with Norwegian firms Scatec and Yara International, will produce green ammonia in Damietta with initial investments of around USD890 million. ETEL inked an MoU with Hungarian telecom company 4iG Group to develop and operate a joint venture for building and managing fiber-to-the-home (FTTH) and fiber-to-the-tower (FTTT) networks, with total investments of at least USD600 million.EBRD will provide COMI with USD60 million for on-lending to local women-led businesses and green investments.HRHO's Corp-Solutions issued EGP433 million of short-term notes. The Ministry of Trade and Industry has extended the sugar export ban for the third time in a row, starting from July until the end of September, to maintain the supply in the markets and support price stability at current levels. All accumulated cars at Egyptian ports until 25 June 2024 will be released in a week, according to a government official. 

Prime Minister said the government will unveil several investment opportunities in key sectors during the joint investment conference between Egypt and the European Union slated for 29-30 June.Prime Minister and several government officials on Thursday held an online meeting with over 200 international investors, representing 110 companies. The conversation centered around the local investment environment and gave investors the chance to ask questions.Egypt's net foreign asset deficit continued to narrow in April, falling to USD3.7 billion in the Egyptian banking system, down from USD4.2 billion in March.President El Sisi and Chinese President during El Sisi's visit to China agreed to allow more high-quality Egyptian products into the Chinese market and to explore local currency-denominated local trade.The World Bank revealed that its program with Egypt regarding implementing the state ownership policy will focus on improving governance in the companies that the state will not exit, working on a clear definition of state-owned companies, and the logic behind state ownership.The expected new increases in electricity segments will be implemented in next July's bill. The new increases are expected to range in the first three tranches at a rate of no less than 30%, while the other tranches will not exceed 40% and will not be less than 30%.The New Urban Communities Authority (NUCA) has suspended land-for-FX sales for Egyptians abroad until it assesses the compatibility of the initiative with the CBE's policies. Foreign investors and companies are excluded from this decision.The CBE is expected to issue USD t-bills this week worth USD550 million.TMGH (FV: EGP75.00, OW) achieved strong 1Q24 results, with sales rising 211.5% y/y and 11.0% q/q to EGP38.0 billion. Net profit in 1Q24 increased 219.8% y/y and 279.8% q/q to EGP2.4 billion, supported by stronger operations and FX gains. We maintain our Overweight recommendation of TMGH on an updated FV of EGP75.00/share, up from EGP73.80/share.EAST reported 3Q23/24 net profit of EGP2,276 million (+12.4% YoY, +28.4% QoQ). This brings 9M23/24 bottom-line to EGP5,172 million (-2% YoY). EAST is currently trading at P/E24 of 5x.We downgraded our FV for ECAP to EGP30.82/share from EGP35.56/share, maintaining our Overweight recommendation for the stock with an upside potential of 51%. Relatively tighter margins were the main contributor to the downgrade.The Financial Regulatory Authority (FRA) approved Abu Dhabi-based electrical equipment manufacturer Electra Investment Holding's bid to acquire a 24.5% stake in SWDY at a price of USD1.05/share.CCAP's shareholders can buy into its debt today after its ordinary general assembly approved the debt payback plan. If the company does not raise the full debt amount tomorrow, it will open a second round of subscription on 9 June.TAQA subsidiary and Egypt-based LNG-focused energy company, Rosetta for Energy Solutions, will provide Elsewedy Industrial Development's Elsewedy Industrial City in Tanzania with LNG under a recently inked MoU.Petroleum Minister launched the pilot operation of the expanded oil refinery of Nasr Petroleum Company in Suez at EGP2 billion investments to magnify high-quality petroleum products. The project's annual production capacity stands at 1.2 million tons, expanding the refinery's annual capacity from 6.5 to 7.7 million tons.PHAR (OW, FV:EGP38.79) issued its consolidated net profit of EGP604 million, up 2.2x YoY. PHAR is currently trading at FY24 P/E of 8.7x. ValU, HRHO's subsidiary, is planning for a securitization issuance worth EGP1 billion mid-July 2024.AIH released positive 1Q24 bottom line of EGP13 million (+41% y/y). The growth is mainly attributed to the positive performance of the company's subsidiaries, Rawaj Consumer Finance and Kahromika.

Foreign investments in the secondary market for treasuries recorded a net sale on Monday of EGP1.7 billion, the first after the EGP flotation early March. Foreigners bought EGP326 million worth of treasuries and sold about EGP2.04 billion. American energy company Apache invested USD137 million in exploration activity in Egypt during the 1Q24. The government is looking to cut down on its spending on bread subsidies to bring the selling price closer to the “massive” cost of production, Prime Minister said. He explained that the government will continue to subsidize bread. Prime Minister also signaled that we could see more fuel price hikes as the state looks to “restore balance” between cost of production and end price by the end of 2025. This will happen “gradually” and will not include diesel. Prime Minister said that the Electricity Minister will prepare a plan as to how the government can completely cut its spending on electricity subsidies over the coming four years. Households with light consumption will continue to see their electricity bill heavily subsidized but the government will be able to cover the cost through other outlets. The government is looking into importing wheat from Mexico, Zimbabwe, and Sweden in a bid to diversify its wheat across different continents, a government official said.  Prime Minister said that he assigned the Ministers of Electricity and Petroleum to develop a clear plan to bring load-shedding to an end, with the end of daylight saving time, no later than next November or December. The USD concessions by individuals and companies to banks and exchange offices since 6 March 2024 has reached about USD3 billion, sources said. Saudi Arabia's Public Investment Fund (PIF) is in talks to acquire an unspecified minority stake in local agriculture firm Daltex Corporation through a capital increase. GV Investments' automotive arm GV auto will start locally manufacturing Chinese state-owned auto manufacturer FAW Group's cheapest EV model in 1Q25. The production will mainly target ride-hailing services.. The companies will spend up to USD20 million on industrial facilities.We issued a valuation update for BINV where we maintain our Overweight recommendation on an updated FV of EGP34.17/share given the company's recent round of new investments. CNFN subsidiary, Sarwa Insurance, targets EGP80 million in profits by the end of this year and plans to increase its paid-in capital from EGP138 million to EGP250 million during the first half of the fiscal year 2024-2025.

Egyptian Banks Report Extraordinary 1Q24 Results Amid Surging Interest Rates; Upside Potential Is Hard to Ignore As highlighted before, post the recent 600 bps increase in policy rates and the EGP devaluation, we expect another year of exceptional profits with impact starting to appear in 1Q24, spearheaded by COMI and ADIB, supported by:1)Strong Interest income, driven by:•Stronger NIMs.•Balance sheet expansion with the weakness in local currency, high inflation, and FC availability which entices LC lending. 2)Strong non-interest income, driven by:•Stronger FX gains.•Higher net fees and commission income, associated with improved trade finance activity.Egyptian banks are delivering ROEs north of 30%, and most of them are trading below book values while being well provisioned.We believe those banks present the best value, trading at cheap valuations with good fundamentals: ADIB, QNBA, HDBK, EXPA, and CIEB along with COMI.Suez Canal revenues declined about 57% during January to 12 May, decreasing to USD1.576 bn compared to USD3.66 bn in the same period last year, due to disruptions in the Red Sea.Three Malaysian companies reportedly intend to pump investments worth USD150 mn into the chemical industries and renewable energy sectors in Egypt.ADQ has delivered the second tranche of the USD35 billion Ras El Hekma agreement on Sunday. The tranche consists of USD14 bn fresh inflows and USD6 bn in the form of a previous UAE deposit at the CBE.Kuwaiti real estate player Urbnlanes Developments and the British IHG Hotels & Resorts will set up two new hotels in Egypt with combined investments of USD85 million. To open their doors in 2028.The Sovereign Fund of Egypt will be touring the Gulf next month to drum up investment.The Planning Ministry is looking into launching an industry-focused sub-fund under the SFE.Banque Misr and NBE are considering stopping the issuance of one-year high-yield certificates of deposit (CDs) that were issued at the start of the year.FWRY reported positive 1Q24 results: Net profit came in at EGP307 million (+149% YoY, +34% QoQ). Bottom line performance was attributed to: Strong revenue growth, margin expansion, and higher interest income. FWRY is currently trading at 2024f P/E of 19.9x.TMGH declared EGP0.22/share cash dividends (DY of 0.4%). Record date is 27 May-24. Distribution date of first EGP0.11/share installment is 30 May-24 and second installment is 31 Jul-24.ZMID declared EGP0.15/share cash dividends (DY of 2.5%). Record date is 27 May-24. Distribution date of first EGP0.05/share installment is 30 May-24 and second installment is 29 Aug-24.SWDY is to distribute cash dividends of EGP0.50/share on 29 May-24 for shareholders on record on 26 May-24. DY is 1.4%.EGAL raised its selling prices by a range of EGP13-15k per ton in May, according to local media. Cleopatra Group plans to kick off operations at its new USD50 million ceramics factory in June.CANA released positive 1Q24 results where net profit pre-appropriations recorded EGP611 million (+144% y/y, -35% q/q). CANA is trading at the lowest multiples in our banks' coverage universe on P/E24 of 2.0x and P/B24 of 0.55x, on ROAE of 32%.CIRA's Board approved the collaboration with SEIC and Social Capital Impact to allow them to conduct due diligence. Weekly Commodities Update Last Price | WoW Change, %Brent, USD/bbl | 82.8 | -0.2%Diesel-HSFO Spread, USD/ton | 287.9 | 4.6%Egypt Urea, USD/ton | 302.0 | 0.0%Polyethylene, USD/ton | 1,030.0 | 0.0%Polypropylene, USD/ton | 975.0 | 0.0%Iron Ore 65%, USD/ton | 132.8 | 1.2%Steel/Iron Ore Spreads, USD/ton | 383.4 | 0.0%LME Aluminum Cash Price, USD/ton | 2,483.

CCAP: What Does One Year Forward Look Like? In light of the potential debt settlement deals and restructuring plans of CCAP, we ran an exercise to examine the impact on the FV of the stock if the announced plans succeed. According to our assumptions and calculations, CCAP's debt will go down to EGP9,376.5 million (EGP2.35/share) by the end of 2024, while the number of shares will increase to 3,991.4 million shares, based on a capital increase of around USD231 million. We also updated the relative valuation for CCAP's subsidiaries and applied a conglomerate discount of 20% which resulted in a FV of EGP3.00/share (compared to EGP3.10/share in our previous update before the restructuring). Thus, we believe that the debt settlement and restructuring process including the capital increase will not erode CCAP's FV.Government sources said that some local and foreign investors intend to acquire varying percentages of the Egypt Aluminum and Delta Steel companies. The sources added that there are other offers to acquire two other companies owned by the Holding Company for Pharmaceuticals, explaining that the dollar amounts targeted to be collected from these deals range from USD2.5 billion to USD3 billion. The government is studying a World Bank recommendation for the creation of a new entity to which the ownership of all state-owned companies would be gradually transferred.Minister of Finance said that the first draft of the new income tax law will be prepared in six months, to be subject to dialogue with the private sector and business stakeholders.COMI (FV: EGP100.00, OW) recorded a strong set of 1Q24 results where net profit post-minority interest recorded EGP11,924 million (+65% q/q, +97% y/y).BTFH announced that its wholly-owned subsidiary, Beltone Leasing and Factoring, has signed a sale and leaseback agreement and factoring facility totaling EGP400 million with a real estate development company in Egypt.CNFN's subsidiary, Contact Pay, has inked a strategic partnership with e-payments firm Damen to work together to build a comprehensive digital payment ecosystem. Banque Misr's Misr Digital Innovation (MDI) has so far invested EGP2.5 billion in Onebank, which is set to be the country's first digital bank. The International Finance Corporation (IFC) has agreed to grant Banque du Caire USD100 million in financing to be on-lent to micro, small, and medium enterprises, and female entrepreneurs.CCAP sent a release regarding the debt purchase offer submitted by QHRI. The FRA decided to extend the period of participation in the debt purchase to the shareholders on 27 May 2024. Qatari state-owned oil and gas company QatarEnergy is set to acquire a 40% working interest in ExxonMobil's Cairo and Masry offshore concessions under a farm-in agreement inked by the two parties.According to local media, TMGH (FV: EGP73.80, OW) achieved 1Q24 sales of EGP63.5 billion.According to local media, PHDC (FV: EGP7.11, OW) achieved 1Q24 sales of EGP28.9 billion, up 326.6% y/y and up 18.0% q/q.According to local media, MASR (FV: EGP5.24, OW) achieved 1Q24 sales of EGP14.8 billion, up 725.5% y/y and down 1.6% q/q.HELI (FV: EGP18.84, OW) Board proposed the distribution of EGP1.34/share cash dividends, implying a DY of 14.3%.EFID signed an eight-year tenor loan with a value of EGP990 million to finance new production lines to boost capacity. Egypt's ceramics exports dropped 33% YoY to USD24 million in 1Q24 due to geopolitical instabilities in the region.

Egypt's foreign debt climbed by USD3.5 billion in the three months ending December 2023 to reach USD168 billion. Monthly headline urban CPI inflation recorded 1.1% in April 2024 compared to 1.7% in the same month of the previous year and to 1.0% in March 2024. Accordingly, the annual headline inflation rate recorded 32.5% in April 2024, compared to 33.3% in March 2024.CBE data revealed a decline in the UAE's debt to Egypt during 4Q23 to USD21 billion, compared to USD22.2 billion in September (before the deal of Ras Al Hekma). At the same time, Saudi loans to Egypt increased to USD12.9 billion, compared to USD12.5 billion in September.Egypt is working to get Apple to set up a factory in the country, Prime Minister Moustafa Madbouly said.International Finance Corporation (IFC) Vice President for Africa is in Cairo today and tomorrow to meet with senior figures in the public and private sectors and other development organizations to identify ways to support the state's privatization program.Greece will be employing over 5k Egyptian farm workers starting this summer for temporary agricultural work as part of an agreement signed in 2022 with Egypt.US-based tire manufacturer Prometeon Tyre plans to invest EUR100 mILLIOn in Egypt over the next five years to boost production and support research and development, the group's CEO was quoted as saying.The government is looking into setting up its first freezone for outsourcing services over the coming year.Eight international institutions are participating in arranging the external loan directed to the monorail in the Administrative Capital and 6th of October City, at a value of EUR1.88 billion.The American company Valco Energy revealed that its dues owed by the EGPC amounted to USD50.5 million, the result of implementing the agreement to merge its concessions retroactively starting in 2020. It stated that this value decreased from USD67.5 million in October 2022, after renegotiation the EGPC.According to local media, TMGH (FV: EGP73.80, OW) laid the cornerstone of its Banan project in Riyadh which is expected to generate sales of SAR40.0 billion.ADIB recorded an outstanding 1Q24 consolidated bottom line post minority of EGP2,116 million (+110% y/y, +90% q/q). The bank is currently trading at 0.9x P/B24 and 2.9x P/E24.FAIT (FV: EGP33.00, OW) released exceptionally strong 1Q24 consolidated financial indicators, where the bottom-line recorded EGP6.1 billion (+178% y/y, +849% q/q). FAIT is currently trading at P/E24 of 2.9x and P/B24 of 0.6x.TAQA released 1Q24 consolidated unaudited financial indicators. Net profit increased 16% YoY to EGP102.8 million.CCAP sent a release in response to the FRA's inquiries regarding the debt settlement and the potential capital increase disclosure published last Tuesday. Citadel Capital Partners Ltd. has decided to freeze 100% of the shares to be transferred to Citadel Capital Partners and the shares of its related parties for a period of two years starting from the date of issuance of the capital increase shares. Egypt's natural gas consumption has increased by 300 million cubic feet per day to reach 6.1 billion cubic feet during May 2024.

CAPMAS is expected to publish inflation readings for April on Thursday, 9 May. We expect annual urban inflation to record c.32%, lower than 33.34% in March, mainly on a relative calm in some food items.Net foreign reserves increased by USD696 million from the month before to USD41.1 billion at the end of April, reaching their highest level in more than four years.The EGX's long-awaited sharia-compliant index is to launch before the end of June. Egypt's headline PMI registered in April 47.4. This was down from March's 47.6 and the second-lowest reading in the past year. Suez Canal revenues registered USD330.3 million in April 2024, lower by USD575.1 million YoY.Egypt intends to pay USD845.3 million to the IMF during current May, divided into six tranches.The Egyptian Stock Exchange is preparing to receive three new offerings on the main market during the current year, out of six expected to be implemented. The Minister of Justice, revealed a decision from the Real Estate Registry Authority stipulating that when registering the ownership of any contract for foreigners, proof of the transfer of the value of the housing unit from abroad to the banking system must be submitted.The government is working to amend the economic zones law in a bid to make domestic economic zones more attractive in the face of international competition.Foreign energy companies' arrears owed by the electricity sector in Egypt reached USD450 million as of the end of last March, sources said.SEIC signed a conditional agreement with Social Impact Capital (SIC) to indirectly acquire CIRA's free float shares through capital increase in SIC. SIC will use the cash injection to launch a mandatory tender offer to buy CIRA shares at price of EGP14.00/share.CCAP released 4Q23 results. CCAP reported a consolidated net profit of EGP4.8 billion in 4Q23, a 1071% YoY growth (+134% QoQ). 2023 net profit grew 419% YoY to EGP6.5 billion. The company is currently trading at a 2024f PE of 5.3x and EV/EBITDA of 2.5x.Qalaa Holding Restructuring I Ltd. (QHRI), an SPV by Ahmed Heikal, Hisham El Khazindar and Karim Sadek, who collectively own 23.487% of CCAP, is offering to buy the outstanding debt from the lenders of CCAP (total amount equal to USD325 million). The total amount of debt to be settled (which has been accepted by some of the lenders) amounts to USD231 million. Egypt is planning to ramp up natural gas production 8% YoY next fiscal year to an average of 5.7 billion cubic feet a day. Assiut National Oil Processing Company (ANOPC) targets operating five units in its hydrogen cracking complex by 2H25 with investments worth USD3.1 billion.FWRY is holding preliminary talks with six Saudi companies over a potential partnership. The company also held talks with companies in the UAE and Kuwait, according to local press.

Banks' net foreign assets position improved significantly by c.78% from a net liability position of USD13.2 billion in February to a net liability position of USD2.8 billion in March.Finance Minister now expects the country's primary surplus to come in at 5.75% by the end of the current fiscal year.China's state-owned Xinxing Ductile Iron Pipes Company has begun construction on a USD146 million ductile iron pipe factory in the TEDA industrial park, according to an SCZone statement. The Ministry of Communications aims to increase digital exports by 30% by the end of this year to exceed USD8 billion.Egypt aims to increase industrial investments by about 10% during 2024 to reach at least USD3.6 billion.The General Authority of the Suez Canal Economic Zone signed with the Thai company Hi-Tech a contract granting a usufruct for an area of 64k sqm in the Qantara West area to build a sportswear factory with investments amounting to USD20 million.Amr El-Kady, CEO of the Tourism Promotion Authority, revealed its intention to launch a major marketing campaign to promote Egyptian tourism in 12 to 14 markets in May.Banque du Caire will receive a line of financing worth USD25 million from the International Islamic Trade Finance Corporation and the Saudi Export-Import Bank to help Saudi SMEs expand their presence in Egypt and encourage non-oil exports to Egypt.SKPC released 1Q24 unaudited financial indicators. Net profit grew 7% YoY and declined by 13% QoQ to EGP559 million in 1Q24. SKPC is currently trading at 2024e PE of 6.6x and EV/EBITDA of 4.7x.SKPC's BoD also approved stock dividends of 1:5, increasing the company's issued and paid-in capital from EGP1.5 billion to EGP1.8 billion distributed over 907 million shares and financed from 2023 profits.SKPC is distributing cash dividends of EGP1.25/share distributed over two tranches. The first tranche worth EGP0.75/share will be distributed on 29 May 2024, while the second tranche worth EGP0.50/share will be distributed on 25 September 2024. the dividend will be distributed for shareholders on record on 26 May 2024. Implied dividend yield is 4.6%.EGAL reported indicators for 3Q23/24 with net profit after tax coming in at EGP1.8 billion, almost flat QoQ and 19% lower YoY. Meanwhile, 9M23/24 bottom line surged to EGP5.2 billion (+33% YoY). EGAL is currently trading at FY23/24e P/E of 4.6x and EV/EBITDA of 3.8x.Egypt's total iron and steel exports dropped 8% YoY to USD478 million in 1Q24.HELI (FV: EGP18.84, OW) signed a contract with Middle East for Real Estate Development and Investment to co-develop an 894 feddan land plot in New Heliopolis, with a minimum guarantee to HELI of EGP23.8 billion. This project is in addition to the 865 feddan project in New Heliopolis that is also to be co-developed by Middle East for Real Estate Development and Investment.AMIC released its numbers for March 2024, showing a drop in PC sales by 53% MoM and 41% YoY to record 2.8k units, bringing PC sales to 13.4k units in 1Q24 (+9% YoY).COMI intends to borrow USD50 million during 2H24 from the European Bank for Reconstruction and Development with the aim of financing finance green projects in Egypt.Businessman Ahmed Tarek is reportedly studying investing USD100 million in the healthcare sector over the coming three years and is considering acquiring a 20% stake in an EGX-listed pharmaceutical company, according to local press.

The CBE's net foreign liabilities' position shrank in March by about 84% to be limited to USD1.38 billion, compared to USD8.7 billion in February, the lowest since March 2022.The IMF revealed that the government is developing an electronic system for government procurement and studying the strengths and weaknesses of the public procurement system to improve the management of public investments.Saudi Arabia's Ajlan & Bros Holding has filed an offer to the government to secure a land plot in Sharm El Sheikh's Ras Gamila for the establishment of ten hotels. The first phase will see Ajlan commit USD1.5 billion for the development of the hotels, excluding the price of the plot.Egypt has reportedly received the second USD820 million tranche under the IMF's USD8 billion loan program. The Oil Ministry is reportedly stopping all LNG exports to European markets starting next month.The private sector is expected to pour close to EGP10 billion into setting up projects in former HQs of government ministries that are currently being offered up as part of the state's privatization efforts, move to the new administrative capital, and plan to develop the downtown area, Planning Minister said.The disruptions in the Red Sea prompted the CBE to expect weak purchases of foreign currency revenues from the Suez Canal during the year starting from March 2024 until February 2025. The bank expected to buy about USD3.4 billion from the Suez Canal, which is a limited value compared to previous expectations of purchases.SWDY's general assembly approved a cash dividend distribution of EGP0.50/share for FY23, implying a payout ratio of 45.5% and a DY of 1.4%.SWDY's general assembly approved decreasing the company's issued and paid-in capital from EGP2.17 billion to EGP2.14 billion through redeeming 30 million treasury shares with a value of EGP30 million. The Madbouly government plans to launch tenders for an unspecified number of water desalination projects in the Mediterranean Sea, Red Sea, and the Suez Canal within weeks.MASR (FV: EGP5.24, OW) AGM approved the distribution of EGP0.20/share cash dividends (DY of 5.1%) over two tranches: EGP0.10/share in May 2024 and EGP010/share in October 2024.OLFI is distributing cash dividends of EGP0.95/share, implying a payout ratio of 81% and a DY of 8.4%. Record date is 2 May 2024 and distribution date is 5 May 2024.DSCW shareholders approved the distribution of cash dividends of EGP0.17/share, implying a payout ratio of 66.6% and a DY of 11.2%.According to local press, EDA approved increasing the prices of some drugs in light of the increase in production costs attributed to the EGP devaluation. Sourced added that price increases of some drugs reached 50%. The implementation of price increases will occur gradually over stages.BINV has finalized acquiring 68.9% of OFH (3.31 billion shares at an average price of EGP0.44/share). According to BINV's CEO, the Sawiris family now owns around 20% in BINV after the transaction.Sohoula consumer finance, Banque Misr's arm, aims for securitization issuances worth more than EGP1 billion divided into two issues each worth EGP500 million, one to be finalized in 1H24 and the second towards the end of the year. Shell Egypt will begin the 11th development phase of the West Delta Deep Marine offshore concession in 3Q24. Weekly Commodities Update

The CBE has increased cash withdrawal limits from EGP150k to EGP250k per day from banks, and from EGP20k to EGP30k per day from ATMs.World Bank expects Egypt's GDP growth to decline to 2.8% in FY2023/24 from 3.8% in FY2022/23, 0.7 percentage point drop from its previous forecast in January, exacerbated by the repercussions of the Middle East conflict on Suez Canal and tourism. Growth is expected to record 4.2% in FY2024/25.The Renewable Energy Authority and the Sovereign Fund of Egypt are planning to open up bidding for the second half of the Zafarana wind farm in the latter half of the year. The government unveiled its plans to build two solar power plants for EGPC worth over EGP1 billion, to be financed by a grant from the EU.Egypt's fuel imports increased to USD3.3 billion during 1Q24, an increase of 6% compared to the corresponding quarter of last year.ESRS (FV: EGP97.02, OW) reported its 4Q23 and FY23 consolidated financial results with solid operational performance. Net attributable income came in at EGP1.0 billion in 4Q23, 82% higher YoY, and reversing 3Q23 loss of EGP508.8 million. This brings FY23 attributable loss to EGP113.0 million vs. a net profit of EGP4.3 billion in FY22. ESRS is currently trading at FY24e P/E of 1.4x.ESRS's Board of Directors is holding an extraordinary general assembly to consider reducing the company's capital through retiring treasury shares worth EGP910.5 million.Qalaa Holdings (CCAP) has signed a debt settlement agreement with Banque Misr, Banque du Caire, Arab African International Bank, and Al Ahli Bank of Kuwait whereby Qalaa settles the entirety of its debts for a total of EGP4.547 billion as follows:1.            Selling 239.1 million shares, representing 17.68% of TAQA Arabia, with Qalaa retaining the right to repurchase those shares within five years, and the banks having the right to resell those shares to Qalaa in the sixth year.2.            A registered 60,127 sqm land plot overlooking the Nile in Tibeen area.3.            Compensations for variations in exchange rate and stock prices. MOPCO clarified that the merged company net profit on 31 December 2023 was EGP3.59 billion, and the net profit of the merging company was EGP5.97 billion in the same period. It added that the merged company net profit was reported in the equity section of the merging company financial statement in FY23. Local free market urea prices increased from EGP16k to EGP20k per ton during the last month with the start of the summer cultivation season.Petrotreatment is planning to float its shares on EGX during the coming period.HELI (FV: EGP18.84, OW) expects to complete its financial assessment of the three offers it received from Hyde Park Developments, MASR (FV: EGP5.24, OW), and Mountain View to co-develop 500 feddans in New Heliopolis before the end of April 2024 in preparation for selecting an offer.DOMT shareholders approved cash dividend distribution of EGP0.50/share to be distributed in May 2024. This implies a dividend payout of 31% and dividend yield of 4.2%. Weekly Commodities Update|Last Price | WoW Change, % Brent, USD/bbl | 90.5 | -0.8% Diesel-HSFO Spread, USD/ton | 363.1 | -5.3% Egypt Urea, USD/ton | 328.0 | 0.0% Polyethylene, USD/ton | 1,030.0 | 0.0% Polypropylene, USD/ton | 970.0 | 0.0% Steel/Iron Ore Spreads, USD/ton | 394.1 | -3.3% LME Aluminum Cash Price, USD/ton | 2,448.1 | 1.5% Egyptia Retail Cement, EGP/ton | 2,095.0 | -0.1% Steam Coal FOB Newcastle Australia, USD/ton | 129.3 | 0.1% SMP, USD/MT | 2,550.0 | 0.0% Last price may vary week over week in some indices due to time difference

Trade deficit amounted to USD2.08 billion in January, compared to USD3.32 billion for the same month in 2023, a decrease of 37.2%.The Italian "Eni" revealed that it spent USD230 million in 2023 on the development works in Zohr Field, bringing its total expenses on the field to USD6.2 billion.The government discussed main criteria for establishing new special free zones, including the type of the activity, size of employment, exported portion of the output, dependence on local input, and others.Authorities are in talks to lease a floating storage regasification unit (FSRU), with plans to dock the terminal at the Gulf of Suez.The government has developed a mobile application to enable users to view and report commodity prices.Customers have sold nearly EGP10.5 bn worth of foreign currency at the National Bank of Egypt's, Banque Misr's, and Banque du Caire's foreign currency exchange bureaus since the float of the EGP.The Real Estate Tax Authority targets EGP8 billion in revenue in the next fiscal year.Expats have until Monday, 29 April to register for the expat car-for-FX initiative.The government is embarking on a project to make Greater Cairo a more attractive tourist destination.El Sisi promised to continue implementing economic reforms based on “the localization of industry, expansion of the agricultural area, increase of foreign direct investment, and support for the private sector, while providing the necessary social protection measures for the most vulnerable classes.”ESRS (FV: EGP97.02, OW) reduced its local rebar and flat steel prices by 12% and 17% to EGP40.7k/ton and EGP41.7k/ton, inclusive of 14% VAT. The study of the technical and financial offers submitted for the rehabilitation of EGAL's facility is expected to take one month, according to local media. EFID declared cash dividends of EGP0.43/share for FY23, implying dividend payout ratio of 18.4% and dividend yield of 1.3%. Dividends will be distributed on April 24, 2024 and record date to be on April 21, 2024.ABUK and Helwan Fertilizers submitted a request for the government to revise the subsidized fertilizers prices due to the higher production cost after floatation. Investment management firm Act Financial is looking to raise EGP700 mn selling off a minority stake next month. EGP 500 mn will come from the sale to investors via private placement and the remaining EGP 200 mn will come from the public offering. The Cairo Twenty-Four website stated that Kuwaiti investors submitted an offer to acquire Banque du Caire.

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 bnThe 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. 

Will EGP flotation trigger drug price revisions?Thoughts on potential impact on producer sales and FVsAccording to local media, Egyptian drug producers intend to officially request for a price increase of at least 50% during their upcoming meeting with EDA to absorb the rise in production costs.Accordingly, we expect a gradual increase in drug prices to be implemented soon, reflecting a positive impact on pharma market growth as well as producers' revenues and gross profit throughout 2024. This impact will not reflect immediately, but will be gradual as repricing is approved on several rounds.Two scenarios for price increases •   1st scenario: a minimum of 30% increase in pharma market sales, mirroring pharma market growth in 2023 which was driven solely by increase in ASP•   2nd scenario: a rise of 50% in pharma market sales, which is the percentage demanded by pharmaceutical companies-ISPH to benefit the most out of any price increase, whether 30% or 50%, since it is an FX-neutral stock with no direct costs in foreign currency - The upside potential in RMDA and PHAR is not meaningful unless the price increase is 50% or more The World Bank Group (WBG) announced over USD6 billion in support to Egypt over the next three years. The WBG will provide the funding through a comprehensive program that includes USD3 billion for governmental programs and an additional USD3 billion for the private sector. Egypt's credit outlook was lifted to positive from stable by S&P Global Ratings, which affirmed the rating at B-. The EU will disburse some EUR1 billion worth of concessional loans in the short term, Egypt's ambassador to the EU. The remaining EUR4 billion will be extended in tranches starting the end of this year, he added. The soft loans will come with interest rates of no more than 3% and will be paid over no less than 20 years. Customers have sold over EGP3 billion worth of foreign currency at the National Bank of Egypt's foreign currency exchange bureau. Minister of Finance said that the allocations for health and education are increased by 20% in the FY2024-25 budget despite planned rationalization and fiscal consolidation, adding that subsidies for bread will increase to EGP120 billion up from EGP83 billion in the current budget, while fuel subsidies are estimated at EGP147 billion up from EGP119.4 billion. The Trade Ministry has extended its ban on the export of sugar for three months. The ban, which runs through June 2024, exempts surplus quantities beyond local market needs and this marks its second extension since December. The government is working with the Central Bank of Egypt to secure the FX needed to import 1 million tons of sugar in order to fill the needs of the domestic market.  According to local media, the Egyptian Drug Authority (EDA) will hold a meeting next Tuesday to discuss the pharma pricing scheme following the central bank's decision to float the EGP. The Ministry of Transportation finalized the allocation of 9.5 million feddans in Suhag and Aswan to investors by the end of last January mainly for launching wind and solar power stations. Among the investors are ORAS, Aqua Power, Nowais, and Masdar. MASR (FV: EGP5.24, OW) launched Theqa, a property warranty which is designed to substitute maintenance deposits by requiring the customer to pay for maintenance and operation services without any additional increases or differences for up to 20 years upon receipt of the unit. On a separate note, according to local media, MASR is working to acquire a 400 feddan land plot on the North Coast and aims to grow its total land bank to 20,000 feddans. The Indian Rana Group wants to establish a green hydrogen project in Egypt with USD

EU leaders have sealed a EUR7.4 billion deal with Egypt to help boost the economy, in an attempt to bring stability to the region and avert another migration crisis in Europe.Egypt has requested from the IMF USD5 billion as a first tranche it will receive next April.After the float of the EGP, the government has made easing the backlog one of its top priorities, with some USD3 billion worth of goods released in the span of a few days, the Prime Minister said.JP Morgan Bank will make available, within days, an amount of EUR350 million for the Monorail line project in the New Administrative Capital and 6th of October City, to accelerate the operations and disburse dues and payments to the implementing companies.The government will soon launch a tender to select an international consulting firm to develop a plan and prepare the necessary studies for an electricity linkup with Greece that will enable exports of Egyptian renewable energy into Europe.Five investors of Arab and foreign nationalities are studying investment opportunities in the Egyptian healthcare sector during the coming period.The New October City Development Authority received 60 requests from investment companies and real estate developers to obtain investment plots of land according to the payment mechanism in US dollars transferred from abroad.Egypt has received humanitarian aid worth USD13.3 million since the beginning of 2024, according to the Financial Tracking Service website issued by the Office for the Coordination of Humanitarian Affairs.The Egyptian-Australian Business Council seeks to localize 30 Australian companies in Egypt during the current year, with investments amounting to USD600 million.CLHO (FV: EGP5.30, OW) reported 4Q23 results.Net attributable profit stood at EGP107 million in 4Q23 (+36.0% YoY, -19.0% QoQ), bringing 2023's net attributable profit to EGP418 million (+28.4% YoY). CLHO is currently trading at 2024f P/E of 17.0x and EV/EBITDA of 8.2x.The government reportedly wants to keep no more than 20% of HELI (FV: EGP18.84, OW), ZMID, and ELSH by the start of 2025.KIMA released FY24/25 budget with a net profit of EGP821 million and total revenue of EGP6.7 billion, including EGP5.1 billion of export revenue. KIMA is holding a general assembly on 20 March 2024 to approve increasing the company's paid-in capital by EGP4 billion to EGP9.9 billion through a rights issue at EGP5 per share as par value in addition to EGP0.05 per share as issuance expenses. The Egyptian Natural Gas Holding Co. (EGAS) plans investing USD2.6 billion during FY24/25 to develop 20 wells.EGAS is setting up a new venture in the KSA, dubbed Modern Gas Saudi Arabia, which will be 80% held by units of the state-owned natural gas player.Weekly Commodities Update |   | Last Price | WoW Change, % | Brent, USD/bbl | 85.3 | 4.0% | Diesel-HSFO Spread, USD/ton | 387 | 2.0% | Egypt Urea, USD/ton | 406 | 0.0% | Polyethylene, USD/ton | 1,040 | -1.9% | Polypropylene, USD/ton | 970 | 0.0% | Steel/Iron Ore Spreads, USD/ton | 388 | 2.0% | LME Aluminum Cash Price, USD/ton | 2,225 | 1.4% | Egyptian Retail Cement, EGP/ton | 2,080 | 0.0% | Steam Coal FOB Newcastle Australia, USD/ton | 131 | -2.5% | SMP, USD/MT | 2,640 | 0.0% | Last price may vary week over week in some indices due to time difference

The two exchange companies affiliated with the National Bank of Egypt and Banque Misr attracted more than EGP2 billion in proceeds from concessions on foreign and Arab currencies in favor of the EGP, since the CBE's decision to liberalize the FX rate on 6 March.The Prime Minister said that the demand for the USD, as confirmed by the Governor of the CBE, has begun to decline in light of the wide availability made by the bank and the speedy release of goods from customs in recent days.A delegation led by European Commission President will be in town today. A package worth EUR5 billion through 2027 is expected, with as much as EUR1 billion of that fast-tracked for disbursal 1-2 weeks down the road a senior EU diplomat told press.Foreign investors have poured over USD3 billion into Egypt since the CBE floated the EGP, a government source said. The number is expected to jump to USD30 billion before the end of the year, they added.The CBE raised EGP217.9 billion-worth of one-year t-bills and EGP46.8 billion-worth of six-month t-bills on Thursday. The bank's one-year bills received offers over 13x its original ask and its six-month bills 4x its ask. The average yield for the one-year bills dropped down to 30.14% from 32.30% the week before, while the six-month bills' average yield dropped to 29.91% from 31.84% the week before.Egypt's blockbuster cash infusions, currency devaluation, and interest rate hike are not quite enough for Fitch to adjust the country's credit rating, the agency's head of Middle East and Africa sovereigns said.US energy company Chevron plans to start drilling the first extraction well in its Nargis 2 gas field in the eastern Mediterranean by 4Q24, with initial investments amounting to USD60 million. Chemicals and fertilizers exports council targets increasing the sector's exports by 30% to USD9 billion in 2024 from USD7 billion in 2023.Raya Information Technology, a subsidiary of RAYA, is in advanced stages to acquire a local BPO outsourcing player, according to local press.The total insurance premiums increased by 30.4% to reach EGP74.1 billion, compared to EGP56.8 billion during 2022.

Egypt's Banking Sector Poised for Another Leap Year Amid Surging Interest RatesWe believe that Egyptian banks are well positioned to benefit from the current macroeconomic conditions, and we expect another year of exceptional profits with impact starting to appear in 1Q24.Key Factors Driving Strong Growth: Stronger NIMs: supported by higher yield on treasury investments even on stable exposure.Strong non-interest income growth will be driven by stronger FX gains on the revaluation of financial assets in FC.The EU will provide Egypt with a EUR7.4 billion (over USD8 billion) package varying between grants and loans. Egypt has recently released a portion of accumulated goods across various ports totaling USD3 billion, Prime Minister stated during a cabinet meeting.Prime Minister said that there are indicators of improved liquidity as the confidence of citizens, tourism companies, and Egyptians abroad in the EGP improved, increasing the transfers and concessions on the USD.A member of the General Importers Department of the General Federation of Chambers of Commerce, said that banks have accelerated the pace of release for priority sectors, such as food, medicines, and production supplies, since the beginning of this week.Egypt has collected USD685 million from the second phase of the initiative to facilitate the import of cars for Egyptians abroad since its launch at the end of October.The government raised the price of wheat supply during the coming season by 25% compared to the indicative price it set at the beginning of the season to reach EGP2,000 for ardeb.South Valley Petroleum Holding Company added new oil reserves to its recoverable production of about 46 million barrels since July 2023 until March 2024.SWDY reported 4Q23 and FY23 consolidated results recording attributable earnings of EGP2.0 billion (-12% YoY, -18% QoQ), leading to FY23 earnings of EGP10.1 billion (+87% YoY). At the current market price, SWDY is trading at FY24e P/E of 10.8x and EV/EBITDA of 4.6x.10 banks raised the limit for international purchases through credit cards after the CBE directed banks to lift restrictions on the use of cards. EFG Finance, HRHO's subsidiary, has obtained a license from the FRA to launch its new subsidiary, which will specialize in providing an innovative package of financial solutions and services specifically designed to meet the financial needs of SMEs in Egypt. The new company is expected to begin operations over 2Q24.Several companies including CNFN, MNT-Halan's Tasaheel, GB Capital, and Rawasi Urban Development are in talks with the Financial Regulatory Authority (FRA) to move ahead with sukuk issuances worth a combined EGP10 bn. CNFN's Contact Pay customers will now be able to make use of OPay's channels, which includes over 90k points of sale and payment kiosks.Adnoc and BP's USD2 billion bid for Israeli natural gas giant NewMed Energy has been put on ice, amid uncertainty created in the external environment. The Oil Ministry has devised a plan that will see state-owned firm Egyptian Petrochemicals Holding Company (ECHEM) producing the country's first sustainable aviation fuels (SAF).According to local media, the Pharmaceuticals Division of the Federation of Egyptian Chambers of Commerce intends to ask the Egyptian Drug Authority that the approved increase in drug prices that the Authority will agree on should be around 50% at least, to absorb a large portion of the expected increase in production costs after the floatation. 

Egypt expects to receive between USD5-6bn [EUR4.6-EUR6.5bn] in funding from the EU under a major 'cash for migrant control' pact which is set to be finalised this weekend. The IMF intends to provide about USD1.5 billion to Egypt within weeks, within the framework of the loan program that was agreed to increase last Wednesday from USD3 billion to USD8 billion. Customers have sold over EGP1.05 bn worth of foreign currency at the National Bank of Egypt's foreign exchange bureau Al Ahly Exchange, Banque Misr's Misr Exchange, and Banque du Caire's Cairo Exchange following the central bank's decision to float the currency last Wednesday. The UAE's largest FX bureau and remittances company, Al Anasri Exchange, has seen a “remarkable increase” in transfers sent from the UAE to Egypt as Egyptian expats go back to using official money transfer channels post float. The government will use 50% of the money generated through its privatization program as well as the country's primary surplus to service and reduce outstanding debt in the upcoming fiscal year, according to Finance Minister. The Ministry of Finance intends to set a ceiling on government guarantees as part of its plan to limit external debt, with a debt ceiling that cannot be breached without a Presidential greenlight. Finance Minister said that the budget for FY2024-25 includes revenues of EGP2.5 trillion, while expenditures will reach about EGP3.8 trillion. There will be no tax increases for investors in the next fiscal year. Additionally, mandatory solidarity contributions to the universal health ins. system will be deducted from taxpayers' tax base. Four international companies are competing to win gold exploration concessions in two areas near the Sukari mine in southern Egypt, during the first global bidding offered by the Shalatin Mineral Resources Company, including “Lotus” Canadian Gold and Russian "Infinity". Moody's has upgraded the long-term deposit ratings outlook of five local banks to positive from negative. The five banks are: National Bank of Egypt, Banque Misr, and Banque du Caire, COMI , and Bank of Alexandria.  BTFH turned profitable in 2023 after years of losses, recording EGP369 mn in net income compared to a net loss of EGP269 mn in 2022. BTFH is seeking to complete the dual listing process for its shares on the Nasdaq Dubai stock exchange during the coming period. The sources expected that the registration process would be completed by the end of this year or first quarter of 2025. The National Bank of Egypt (NBE) is considering investing over EGP2.5 bn to acquire at least 20% of an unnamed major real estate firm.                    Abu Dhabi Commercial Bank and ADIB are the latest in line to revise their monthly credit card FX spending limits. Aman Holding for Financial Services, a subsidiary of RAYA, is planning an EGP3-4 billion Sukuk issuance during 2024. FWRY intends to settle on the company's most appropriate partner for the digital bank and conclude the studies within a couple of months.   SWDY's subsidiary, Elsewedy Electric for Electrical Products, wants to establish a USD50 million power transformers factory in Saudi Arabia in partnership with an unnamed Saudi partner. OPEC still sees strong demand for oil this year and next, saying in its latest monthly report that it still sees demand rising 2.25 million barrels per day this year and 1.85 million bpd in 2025. It sees some room for global growth to pick up and, if it does, drive even more demand.

*Key news articles for today*The OECD sees that phasing out the country's broad-based energy subsidies to, eventually, reflect global energy prices is a must, adding that fully phasing out subsidies both for electricity and natural gas would help address inefficiencies in electricity use in manufacturing, transport, and logistics, which account for nearly 40% of domestic power demand. Sources at the Ministry of Electricity estimated the arrears of foreign companies operating in the sector at more than USD500 million at 2023-end. Egypt is looking to be re-listed in the JPMorgan Emerging Markets Government Bond Index, following its recent economic reform steps, according to the Minister of Finance. Minister of Trade and Industry, revealed that Egyptian merchandise exports recorded c.USD6.12 billion during the months of January and February 2024, compared to USD5.7 billion during the same period in 2023. On the other hand, trade deficit during December 2023 recorded USD3.03 billion, compared to USD2.57 billion during the same month of the previous year. The volume of transactions in the USD interbank market between Egyptian banks amounted to USD2.569 billion during the first 3 days of the flotation decision. The Holding Company for Construction intends to offer majority shares from Al-Nasr Housing and Development, Al-Maadi Development and Construction, and Misr Reinforced Cement Works companies within the framework of implementing the government offerings plan.COMI has raised the monthly maximum cap on FX transactions abroad to the equivalent of EGP75k-200k depending on account type, up from EGP25k-175k. Egyptians abroad can now also withdraw the equivalent of EGP3.5k-10.5k from ATMs abroad every month, up from EGP2k-6.5k. COMI also increased the monthly ceiling on FX transactions at home to EGP50k for all account types, up from EGP3.5k-12.5k. DOMT (FV: EGP13.42, EW) reported 4Q23 results: •                  Attributable net profit for the quarter recorded EGP100 million (-2.7% YoY, -2% QoQ), which is the weakest throughout the whole of FY23. FY23 attributable net profit recorded EGP454 million (+71% YoY).•                  DOMT BoD proposed cash dividends distribution of EGP0.50/share, implying a payout ratio of 31% and a dividends yield of 3%.•                  DOMT is currently trading at a FY24 P/E of 7.5x.  Norwegian renewables developer Scatec's planned solar plant to power EGAL's Nagaa Hammadi industrial complex will be set up with investments of USD1.1 billion. The solar plant will produce 2-GW worth of green power. The developer will finance the project, conduct the required studies, develop the plant, and install the needed equipment.Chems The Ministry of Petroleum targets injecting investments worth USD535 million in Zohr field during the coming fiscal year. Meanwhile, Petrobel targets investing USD614 million during FY24/25 to increase crude oil and gas production rates to 179k BOE per day.

Annual urban inflation skyrocketed to record 35.7% YoY in February, up from 29.8% YoY in January. Monthly urban inflation surged to 11.4% MoM, the highest on our records.Annual core inflation — which excludes volatile items such as food and fuel — rose to 35.1% in February, up from 29% in January. Meanwhile, monthly core inflation surged to 6.1% from 2.2% in January.The World Bank is expected to extend around USD3 bn in financing to Egypt, Finance Minister Mohamed Maait said.Local banks have bought and sold over USD2.5 bn on the interbank market since the EGP float Wednesday morning.Minister of Finance said that it was agreed with the New Urban Communities Authority (NUCA) that the public treasury would receive no less than 50% of any investment NUCA gets.Minister of Finance stated that the total budget deficit rose to 6.7% of GDP during 8MFY23-24, up from 5% in the same period of the previous fiscal year.Egyptian customs released basic goods worth USD780 million during the past Thursday and Friday, according to Customs Authority's head.The CBE raised EGP94.4 bn in a nine-month t-bill auction — raising almost 4x its target EGP25 bn. It also sold EGP25 bn worth of three-month t-bills.Minister of Finance also said that the government is now targeting a primary surplus of no less than 3.5% for the fiscal year 2024-2025.Minister of Finance said that the government's allocation to fuel subsidies will remain unchanged until the end of the fiscal year even if fuel prices change. The Finance Ministry is in talks with the Federation of Egyptian Chambers of Commerce to scrap the 11% subsidized loans for industry and agriculture introduced last year in light of the interest rate hikes introduced last week.The Finance Ministry will allocate no more than EGP280 bn to public investment in next fiscal year's budget.ORHD (FV: EGP26.26, OW) reported 4Q23 results. Net profit in 4Q23 increased 255.0% y/y and 10.5% q/q to EGP1.0 billion, bringing FY23 net profit up 69.2% y/y to EGP2.8 billion. We raise our ORHD FV from EGP20.38/share to EGP26.26/share as a result of raising the EGP/USD FX rate embedded in our valuation of the residual land in El Gouna.ARAB reported FY23 net profit of EGP99.8 million, compared to FY22 net loss of EGP18.2 million. According to local press, QIA has resumed negotiations to acquire ETEL's stake in Vodafone Egypt. QIA and ETEL are still in negotiations on the size of the stake and are expected to reach an agreement within few weeks. The government is studying selling another 10% of its stake in ETEL this year or beginning of 2025, according to local press. SKPC's general assembly approved the distribution of cash dividends of EGP1.25/share, implying a dividend yield of 3.7%. The general assembly also approved a stock dividend at a ratio of 1:5.MOPCO's general assembly approved the distribution of cash dividends of EGP2/share, implying a dividend yield of 3.2%.CICH's 2023 net income expanded 31% y/y to record EGP1.04 bn.FAIT OGM approved distributing cash dividends of USD0.06/share, equivalent to EGP1.85/share. This implies a payout ratio of 27.8% and a dividend yield of 4.9%.SODIC's securitization subsidiary, SODIC for Securitization, is set to offload all its shares to Beltone Holding after its general assembly approved the decision on Thursday. HRHO's micro-finance arm Tanmeyah and Egypt's Micro, Small, and Medium Enterprise Development Agency (MSMEDA) will lend out a combined EGP200 mn to local microenterprises under an agreement inked between the two sides.RAYA reported 2023 results. Net income stood at EGP441 million in 2023 (+27% YoY). Revenues grew by 53% YoY to record EGP31.3 billion.Weekly Commodities Update

The past few days have been terrible for cryptocurrency markets, with the market cap of crypto falling below USD1 trillion US dollars, down from USD3 trillion at its peak in November. The sell-off comes as investors rotate out of the riskiest assets due to macroeconomic headwinds and rising interest rates. Once touted as a hedge against inflation and the future of money, can cryptocurrencies rally? We discuss the outlook for the crypto space with fintech expert Varun Mittal.

In today's podcast we cover four crucial cyber and technology topics, including: 1.Zero-Day being exploited to take over confluence servers 2.Clipminer redirecting transaction funds to criminals earns nearly 2 million USD3.Leaks reveal Conti had firmware abuse concept 4.ExpresssVPN exits India over new law requiring user data storage I'd love feedback, feel free to send your comments and feedback to  | cyberandtechwithmike@gmail.com