Market Overview
ADIB
ESRS
EKHOA
ARAB


prepared by: Mayada Amin- CETA, CFTe

Cyprus’ Energy Minister Giorgos Papanastasiou said yesterday that his country is prepared to supply natural gas to Egypt to re-export to European marketsز

Oil Ministry to unveil full incentives policy framework during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2024) which is being held in the UAE until Thursday, Oil Minister Karim Badawi said.

Egypt will pay about USD818 million to the IMF during November, according to local press. The government has already paid USD259 million in commissions, additional fees, and interest due to the Fund on November 1.

The budget achieved a primary surplus of EGP90 billion during 1Q FY24/25, representing more than four times the surplus achieved in previous years, according to a press citing Ministry of Finance statement.

Finance Minister Ahmed Kouchouk laid out three near-term priorities to ensure economic stability and stimulate private sector growth. K

The House is set to vote on an amendment to extend the tax dispute settlement deadline to 30 June 2025.

The General Authority for Supply Commodities has encountered higher wheat supply prices than usual during a global tender on Monday.

The value of Egypt's agricultural exports increased by about 32% YoY during the first 10M2024, recording USD4.1 billion.

The CBE sold one-year EUR denominated T bills worth EUR642.8 million in an auction with an average return of 3.5%.

The Egyptian Railway Authority of the Ministry of Transportation will bid for the development of Tanta–El Mansoura–Damietta Rail Project in January 2025, according to local media. The qualified consortiums include Talis-ORAS, Alstom-Al Rowad, Siemens-Madkour, Chinese CRSC, and Korean LS- KNR.

SIC has offered to purchase some 284.3 mn of CIRA’s shares at EGP 15 a piece, EGP 1 higher than previously expected. This implies transaction value of EGP4.26 billion and would imply FY24/25f P/E of 26.6x and EV/EBITDA of 4.3x.

The General Authority for Investment (GAFI) and Educational Buildings Authority aim to attract investments to establish 1k schools by offering fresh facilities.

HRHO's subsidiary Tanmeyah is planning to expand by adding 100 more branches in the next period.

CICH announces the issuance of a securitization bond with a total amount of EGP3.919 billion to Tasaheel.

CICH Asset Management received the regulatory greenlight to open the subscription door for its CI Sector Fund, a diversified investment fund, starting 11 November and for a two-month period.

CNFN now announces its expansion plan by providing its new digital finance and an investment platform services soon.

ATLC's general assembly approved the issuance of an accumulated cash dividend of EGP0.599/share for the year 2023 implying a payout ratio of 78.3% and a dividend yield of 14.4%.

FWRY announced that its fully in-house developed Soft POS solution has successfully completed the MPOC certification cycle.

Mobily, a leading Technology, Media, and Telecom company in the Kingdom of Saudi Arabia, and ETEL have signed a cooperation agreement to land the first Saudi submarine cable linking Saudi Arabia and Egypt.

Egyptian Cabinet approved the contractual agreement between the Universal Health Insurance Authority (UHIA) and eHealth, a subsidiary of EFIH.

Memphis pharma appointed a new CEO "Tarek Mahrous Salman" after the resignation of the old CEO Bassem Abdallah.

Egypt is set to establish three new shipyards in partnership with the private sector in the Suez and Red Sea governorates, with investments exceeding USD100 million.

Market Overview


Prepared by: Mayada Amin - CETA, CFTe

The IMF will begin the fourth review of Egypt’s IMF loan program tomorrow. Three main areas will be subject to discussions during the review.

The IMF team will be discussing green financing through its Resilience and Sustainability Facility next week. The government applied for an additional USD1.2 bn in long-term, low-cost climate financing from the IMF's Resilience and Sustainability Facility back in August.

President El-Sisi said, during his meeting with the Director of the IMF Kristalina Georgieva, that the current priority is to ease the pressures and burdens on citizens and to contain inflationary pressures.

The government has reportedly hiked the prices of natural gas for households by EGP0.40-1 per cubic meter as part of wider plans to phase out fuel subsidies, according to press.

The CBE is reportedly allowing local banks to issue letters of credit for the import of non-essential goods, including cars, based on each lender’s USD reserves. The move is expected to help clear the backlog of non-essential import requests that have been piling up since 2022.

Ebda’s Nile Fund for Industrial Investment, and the Sovereign Fund of Egypt’s industrial sub-fund are reportedly exploring cooperation to set up new companies specialized in the local manufacture of imported production inputs.

The USD continued its rise against the EGP during the first day of the week, exchanging hands at up to EGP 49.10 and inching closer to its peak recorded during August.

The CBE will sell EUR600 million T-bills for one year today, Monday, that will replace another one-year T-bills that has matured and was worth EUR656.7 million with an average yield of 4%.

The National Tunnels Authority, affiliated to the Ministry of Transport, is expected to receive EUR500 million within days, from 4 international institutions contributing to financing the Abu Qir metro project in its first phase.

COMI (FV: EGP130.00, OW) recorded a strong set of results where 3Q24net profit post-minority interest only recorded EGP14,801 million (-5% q/q, +77% y/y), bringing 9M24 bottom line to EGP42,348 million (+89% y/y). The stock is trading at P/E 2025 of 4.0x and P/B 2025 of 1.3x.

MNT-Halan microfinance subsidiary Tasaheel Finance has issued EGP3.92 bn worth of securitized sustainability bonds.

Al Ahli Bank of Kuwait - Egypt achieved a 131% growth in profits during the first 9 months of 2024, recording EGP5.4 billion compared to EGP2.3 billion in profits during the same period last year.

GB Auto Rental, GBCO subsidiary, has obtained approval from Ministry of Transport to license the rental of transportation vehicles including buses, trucks, and industrial equipment.

According to local media, GBCO SME lender Kredit has secured EGP875 mn in credit financing from a syndicate of nine local and international banks.

Auto sales in September dropped 5% MoM to record 9.5k vehicles, down from 10K in August, according to figures AMIC.

According to local press, informed sources estimated the actual expected increase in mobile network service’ prices at about 15%. Sources expected authorities to implement the increase before the end of this year.

The Suez Canal Economic Zone intends to establish a pharmaceutical industrial zone on an area of ​​4 million square meters.

Alexandria Pharma will pay out a dividend of EGP30 per share on its FY 2023-2024 earnings, with the payment set to be made on 20 November.

OPEC+ has agreed to delay a planned December oil output increase by one month.

EGAS has launched a tender for the development of the Satis gas field in the North El Burg offshore concession after the BP-Adnoc JV abandoned the concession.

Egypt’s chemicals and fertilizers exports reached USD7 billion during 9M24, up from USD5.3 billion in 9M23.

Weekly Commodities Update

Market Overview
COMI
CIEB
EKHOA
ETRS
ATLC

IMF’s Managing Director Kristalina Georgieva kicked off talks with Egyptian officials, including Prime Minister Moustafa Madbouly and CBE governor Hassan Abdalla yesterday after landing in Egypt.

The USD rose more than 0.4% against the EGP on Thursday to reach EGP48.94 to the greenback, marking its highest level since August.

Budget deficit narrowed to 2.12% of the country’s GDP in 1Q 2024-2025, recording EGP361.8 bn, compared to an EGP455.8 bn deficit during the same period last year. This was driven by an increase in revenues, mainly from the taxpayers. Government spending increased by 4.7% YoY, standing at EGP827.7 bn, while interest payments dipped 5.4% YoY, at around EGP452 bn.

Fitch Ratings upgraded Egypt's credit rating from ‘B-’ to ‘B’ with a stable outlook for the first time since 2019, citing FX inflows from the USD35 bn Ras El Hekma agreement, our expanded USD8 bn IMF program, and the EU’s EUR7.4 bn aid package, alongside greater confidence in the durability of our structural reforms.

The IMF expects constraints on Egypt’s growth to ease as regional tensions subside and structural reforms are implemented. The Fund noted that “an assumed easing of the conflict in Gaza and Israel next year and steady implementation of reforms are projected to help lift growth in Egypt to 4.1% in 2025 and above 5% over the medium term.”

Net foreign asset surplus in the Egyptian banking system rose 6% to record USD10.31 bn in September, up from USD9.7 bn in August.

The House will discuss and vote on amendments to the law regulating the tax dispute settlement on Tuesday, which will see the deadline for settlements pushed to 30 June 2025.

Egypt is aiming for 120 GW of total electrical capacity by 2040, with 60% set to come from renewable sources.

A consortium of China State Construction Engineering Corporation (CSCEC) subsidiary Umi Group and IGI Holding have signed an MoU with the New Urban Communities Authority to manage and operate the Central Business District in the New Administrative Capital.

We update our FV on ISPH to EGP9.50/share, up from EGP4.12/share maintaining our overweight recommendation; factoring in the upward revision for prices, increased market share, updating our macro assumptions, and rolling over the model for an additional year. ISPH is currently trading at 2025 multiples of P/E of 8.8x and EV/EBITDA of 1.8x.

EFIC released 3Q24 unaudited standalone results. Net profit increased by 722% YoY (+6% QoQ) to EGP265.2 million, bringing 9M24 net profit to EGP586.7 million, a 150% YoY.

SKPC sent a release announcing that the Council of Ministers has approved the establishment of a project to produce sodium cyanide as free zone project for Draschem Company, which is a partnership between the Austrian Holding Company for Petrochemicals and the Czech Company “Draslovka”. A lease agreement has been signed between them and SKPC for a plot of land to establish the project. Currently, SKPC is considering a 15% partnership in Draschem.

EKHO sent a release in reference to the news published regarding the company’s withdrawal from Al Mohandes Insurance Company, EKHO announced that this news is entirely false and there are no negotiations with any party regarding this matter.

Egypt has welcomed the first oil tanker as part of an MoU inked with the Emirate of Fujairah earlier this year.

The finance and tourism ministries have officially launched a new EGP50 bn subsidized loan program for the tourism sector. The initiative will offer financing at 12% interest, with a focus on key tourist destinations in Luxor, Aswan, Greater Cairo, the Red Sea, and South Sinai governorates.

Market Overview
HRHO
CCAP
ORHD
FWRY
ALCN


prepared by: Mayada Amin- CETA, CFTe

The IMF’s Managing Director Kristalina Georgieva will be in Egypt next week to discuss our USD 8 bn loan program, Prime Minister Moustafa Madbouly said. A delegation from the Fund will arrive directly following her visit in preparation for the program’s fourth review, Madbouly added.

The government will be taking another look at its plan to sell off stakes in state-owned companies and assets, Madbouly said. The sectors and sizes of the stakes of offered companies may be re-evaluated, he said.

The Egyptian Drug Authority gave pharma companies the final greenlight to hike the prices of 3.5k drugs, an official at the authority said. Around 1k products have seen their prices rise and the rest will see their prices rise over the coming few days, the source added.

The government will announce amendments to the real estate tax and simplifications to the Customs Law within two weeks.

DP World has agreed to explore the possibility of developing a public freezone in the new capital under an MoU inked with the New Administrative Capital for Urban Development (ACUD) and the General Authority for Investment and Freezones (GAFI), according to a cabinet statement.

The cabinet approved a draft decision from Prime Minister changing up the government committee in charge of managing debt and external borrowing.

The cabinet approved a draft law amending the Unified Tax Procedures Law, which set out guidelines for tax reconciliation.

The Cabinet approved a draft law to settle the status of taxpayers and end existing tax disputes, part of its wider drive to ease the burden on taxpayers and unify and improve tax services.

The Cabinet approved a draft decision to set up a private freezone under the name Yada Egypt in New Alamein’s industrial zone. The EUR70 mn zone will focus on furniture manufacturing, with 100% of its output earmarked for exports.

The Cabinet approved the establishment of a new committee — dubbed the Energy Planning Unit — that will be responsible for proposing strategies, policies, and plans for implementing energy solutions.

According to local media, OCDI aims to increase its recurring revenue to 12-15% of total revenue within five years, and expects real estate prices to increase by 15% as a result of the recent energy price hikes.

The listing committee of EGX approved listing ESRS's issued and paid-in capital decrease by EGP4.55 million to reach EGP2.711 billion distributed over 542.35 million shares, effective 4 November 2024.

SKPC will set up a USD159 million project for the production of sodium cyanide and its derivatives, dubbed Draschem for Specialized Chemicals, after cabinet approved the move yesterday during its weekly meeting.

MICH will distribute a cash dividend worth EGP4/share on 28 November 2024, for shareholders of record on 25 November 2024.

Halliburton is set to finish preparation work on four deepwater gas wells in Egypt by December. The nearly-completed wells include two in the Burullus offshore gas field in the Mediterranean and two in BP’s Raven gas field in Alexandria.

The Suez Canal Economic Zone (SCZone) has signed a contract with Dubai-based polyurethane systems firm, Pearl Polyurethane Systems, to set up a polyurethane factory in the Sokhna Industrial Zone, with initial investments of EGP100 million.

ALCN EGM approved the distribution of FY23/24 dividends, withs DPS of EGP1.72 and USD0.0034. Record and distribution dates are not declared yet.

BTFH subsidiary, Beltone capital, is aiming to launch its credit rating agency in the first half of 2025.

Etihad Airways launched twice-weekly flights to Al Alamein starting July 2025.