World Bank revised its Egypt economic growth forecast during FY22/23 to 4.0%, down from 4.8% previously. The World Bank is now expecting the MENA region to grow at a 3.0% clip during 2023, down 0.5% from its previous forecast.

Egypt's trade deficit fell 47% YoY in January to USD2.48 billion. Exports fell 7% YoY to USD3.85 billion, while imports decreased 28% to USD6.33 billion.

The expat car import scheme has brought in USD385 million since its launch in November.

The SFE is studying offering assets with Nile view in Cairo and Giza to investors.
 
The IMF expects global economic growth to fall below 3% and remain around that figure for the next five years.
 
Russia’s Deputy Foreign Minister said that Egypt could become a hub for the re-export of Russian grain to the Middle East and Africa.
 
A subsidiary of the National Service Projects Authority has signed an agreement with Al Mawarid Industrial Products Company to establish the first plant in the country to generate electricity using biogas. 

IDHC 4Q22 net profit reached EGP123 million (-68.7% YoY ), compared to net loss of EGP18 million in 3Q22, bringing net profit came to EGP527 million in FY22 (-64.7% YoY).

EFIH announced signing an MoU with Thiqah Business Services, a digital transformation player for public and private sectors in Saudi Arabia.

The total number of citizens who have financial accounts grew 147% YoY in 2022 to stand at 42.3 million citizens (64.8% of the total number of citizens in the age group of 16 years and older).

Samsung Electronics will make a meaningful cut to semiconductor production in a bid to ease a supply glut.

InstaPay currently allows using the application from outside Egypt for the implementation of financial transactions between Egyptian banks.

COMI has discontinued its 22.5% CDs and is replacing it with a series of 3-year 18-20% annual-rate certificates.

Emirates NBD has launched three-year CDs, with annual rates of 18.5% (with annual interest payments), 18.25% (quarterly interest), or 18.00% (monthly payouts).

United Bank is offering three-year sharia-compliant certificates at a variable rate of at least 19% , where the interest is paid monthly.

Aspire Capital intends to widen its operations in the micro-finance area through its subsidiary, AlKhair, as it intends to bring its portfolio to EGP150 million and its branches to 40 by the end of 2023.

MICH is negotiating with MOT, the investment arm of the railways authority, to buy a 15k sqm land plot to be used for expansions.

Imports of CBU cars dropped by 71.3% YoY in January 2023.

Market Overview 



Prepared by: Mayada Amin - CETA, CFTe

Egypt’s net foreign reserves inched up to USD34.45 billion in March from USD34.35 billion in February.

Suez Canal revenues jumped 39% y-o-y in March 2023 to an all-time monthly high of USD832.2 million.

The government is studying the possibility of including EXPA in the government privatization program.

Cabinet approved new minimum wage tiers for public-sector workers effective 1 April 2023.

An American and a Russian firm intend to submit bids to build small nuclear reactors in Egypt.

We raised our FV for MFPC to EGP199.80/share up from EGP140/share with a recommendation of Overweight given higher top line estimates, improvement in gross margins, healthy bottom line, and secure dividend policy.

Eagle Chemicals is now offering to purchase PACH for EGP39.00/share, up from its previous EGP37.00/share bid. 

Phillip Morris raised its selling prices by EGP4-6/pack across its brands effective as of today. This move bodes well for EAST.

Cabinet exempted 25k tons of frozen poultry from customs duties at the weekly cabinet meeting yesterday.

Banque du Caire is offering a fixed, three-year certificate of deposit at a 19% rate, and a three-year declining-rate certificate that starts at 22% before falling to 18% in the second year and 16% in the third year. 

SAUD launched a three-year certificate of deposit at a variable interest rate of at least 19% disbursed monthly.

MCRO announced dividends distribution for 2022 of EGP0.107/share. Record date is 13 April 2023 and distribution date for the first tranche is 20 April 2023 and distribution date for the second tranche is 31 October 2023.

The Chamber of Real Estate Development in the Federation of Industries intends to hold a meeting next week to discuss linking unit selling prices to the USD rate.

• Market Overview 
• COMI
• JUFO
• MICH
• EDBM

Prepared by: Mayada Amin- CETA, CFTe

Bloomberg reported that last month's banking crisis that saw the collapse of three US lenders and Credit Suisse didn't produce the kind of turmoil seen in the lead-up to the 2008 meltdown, raising concerns about what might be coming down the line amid uncertainty about interest rates and inflation.

Japan has split from its G7 allies and will now purchase Russian crude at prices higher than the USD60/bbl cap. Brent crude is currently trading slightly above USD85/bbl.

Egypt's net foreign assets slipped to a negative USD 23.02 bn in February from negative USD 21.70 bn in January 2023, and down from positive USD 20.4 bn in February 2021.

EGP twelve-month non-deliverable forwards have the EGP hitting 41 to the USD.

Out of EGP 3 bn worth of local currency potential bond issuance on Monday, the government accepted only one offer to buy EGP 1.1 mn worth of the three-year bonds at a 21.7% rate, after investors demanded yields of up to 28%, in light of further depreciation fears.

The National Bank of Egypt and Bank Misr collected EGP 122 billion in investments into the two new CDs issued earlier this week. 

Out of the World Bank’s USD7 billion allocated to projects with the Egyptian government, between 2023 and 2027, five are being implemented this year at a value of USD 2.34 billion.

Investors have started submitting capital-increasing offers for the state's newly-established hotels company, according to the Sovereign Fund of Egypt (SFE) CEO. 

The General Division for Medical Supplies at the Cairo Chamber of Commerce will send the CBE a memo requesting his renewal for instructions to all banks on the importance of expediting the procurement of foreign exchange for shipments of medical supplies currently stacked in Egyptian ports since last January.

SCZone General Authority announced yesterday the completion of about 72% of the development work of Ain Sokhna port, with plans to transform the port into a pivotal one that serves global trade through the Red Sea and opens new markets for Egyptian exports.

The General Authority for Investment and Free Zones is to finalize the draft law regulating the Cairo Financial Center with target investments of USD 2-3 billion in 2024.

The government has inked a USD 120 mn agreement with a consortium led by Renergy Egypt to design, build, own, and operate its new waste-to-energy factory in Abu Rawash city.

EGTS (FV: EGP1.68, EW) reported FY22 revenue of EGP116.7 million and net profit of EGP113.9 million, compared to FY21 revenue of EGP127.6 million and a net loss of EGP62.1 million. The shift to profit is due to the increase in net interest income from EGP6.9 million in FY21 to EGP151.9 million in FY22 due to FX gain. The Board approved resuming land plot sales following the lack of land sales the last few years based on an earlier Board decision.

EGAL reached a short-term financing agreement with Suez Canal Bank (CANA) worth EUR12 million to purchase an Italian wires machine with a capacity of 500 tons per month. The company announced paying 35% of the investment value in advance, while the remainder is to be paid with a 1.5% LC.

SAUD is in discussions to increase its stake in ATLC to more than 10% from the current 7.5%. In addition, it is in talks to acquire 10% of Tally, Banque Du Caire's e-payments platform.

OIH released FY22 results where net attributable income stood at EGP368.4 mn compared to a loss of EGP113.0 mn in FY21. The growth mainly came on the back of FX gains of EGP139 mn and revalued foreign accounts amounting to EGP328 mn. OIH is currently trading at P/E23 of 3.0x and P/B23 of 0.37x.

OIH is preparing to establish a new company in Egypt under the name TL for trade and logistics services. In addition, the BoD approved two investment projects, the first in the field of renewable energy and electric vehicles, and the second is a commercial platform serving trade in Africa. <

• Market Overview 
• MFPC
• EFIC
• ASCM
• ELSH
• ADIB

Prepared by: Mayada Amin- CETA, CFTe

Egypt’s PMI scored 46.7 in March 2023, from 46.9 in February, signaling a further deterioration in the performance of non-oil companies. 

Egypt’s external debt in 2Q FY22/23 rose 5.1% q-o-q to USD 162.9 bn during the October-December quarter. 

The Suez Canal Economic Zone (SCZone) will head to India in June, to meet with businesses and investors in sectors including automotive, pharma, and green fuel in efforts to attract more foreign investors to the zone.

A delegation of Chinese tour operators wrapped up a four-day visit to Egypt to bring more tourists to Egypt this year.   

The Ministry of Electricity has received 3 expressions of interest from Saudi companies to invest in projects to produce electricity from wind energy and produce hydrogen and green ammonia, with investments of USD1.5 billion.

The National Bank of Egypt and Bank Misr collected EGP67 billion from the two new CDs on the first day of issuance. 

CIB has launched new three-year certificates of deposit with a fixed 22% interest rate, for a minimum deposit of EGP3 mn. 

The Tax Authority is working on a decision to set its own USD exchange rate to facilitate tax calculations for companies that calculate their earnings in USD.

IRAX reported its consolidated financial results for 4Q22 with net attributable earnings standing at EGP914.6 million (-65% YoY, -35% QoQ), bringing FY22 earnings to EGP6.4 billion, 10% higher than last year. IRAX is currently trading at FY23e P/E of 8.1x and EV/EBITDA of 3.6x.

Two consortia were qualified for the electrification of signaling on Cairo - Beni Suef line project with initial investment of USD221 million. The consortia are Hassan Allam - Alstom and ORAS (FV: EGP106.9, OW) - Talis.

Brent crude settled higher by USD5.04 yesterday, or 6.3%, at USD84.93/bbl after the OPEC+ group jolted markets with plans to cut more production.

The Parliament approved four bills allowing the Oil Ministry to sign exploration agreements with foreign oil and gas companies.

CNFN has closed an EGP1.9 bn securitized bond issuance for its consumer finance arms Contact Creditech and Contact Credit. This is the second issuance within a program of EGP10 bn that CNFN intends to issue over the coming period to finance its subsidiaries. 

ETEL (FV: EGP29.50, OW) announced dividends distribution for 2022 of EGP1.25 per share, implying a dividend payout ratio of 23% and a dividend yield of 4.95%. Record date is on 13th April and distribution date is on 20th April.

Development Partners International (DPI) and Amethis have acquired a significant minority stake in the local pharma player Marcyrl. The stake and value of transaction were not disclosed.

• Market Overview 
• ADIB
• CIEB
• ASCM
• EGAL
• ACGC
• HRHO

Prepared by: Mayada Amin- CETA, CFTe

BRICS might challenge the USD’s dominance in global trade. China and Brazil said last week they will carry out bilateral trade in their domestic currencies. Egypt and India, meanwhile, are considering executing their trade in INR, Bloomberg reports. China settled a bill for LNG imports from the UAE in CNY for the first time. The country is also in talks with Saudi Arabia for a similar arrangement.  

El Sisi landed in Jeddah this morning to discuss with the Saudi Crown Prince enhancing bilateral relations. Egyptian intelligence chief Abbas Kamel was also in attendance. 

NBE and BM offered a fixed, three-year CD at a 19% rate and a three-year declining-rate certificate that starts at 22% before falling to 18% in the second year and 16% in the third year. Interest is paid monthly on both. 

Kuwait is interested in acquiring an additional stake in the Arab African International Bank, where it already owns a 49.5% stake. 

The British Export Support Agency will provide GBP2 billion to support exporting projects in Egypt, which can be employed in any sector, except for the fossil fuel sector. 

Aldar Properties is interested in co-developing HELI's (FV: EGP12.44, OW) Heliopark land plot. 

ESRS reported steady results for 4Q22 with consolidated revenues soaring to EGP23.3 billion (+24% YoY, +5% QoQ), pulling FY22 top-line to EGP84.0 billion up from EGP67.8 billion in FY21 (+24% YoY). Attributable net income stood at EGP570 million. Excluding the one-off forex loss in 4Q22, ESRS would have recorded EGP2.6 billion of earnings, more than double YoY. FY22 earnings came in at EGP4.3 billion, 21% YoY. 

ORAS announces that the Red Sea Wind Energy Consortium achieved financial close, a significant milestone for the new 500 MW Gulf of Suez Wind Farm near Ras Ghareb, in which ORAS will own a 25% stake and will execute the construction of the civil and electrical works. 

SWDY (FV: EGP19.97, OW) stated in an EGX release not receiving any official offers from a Gulf sovereign fund or a Chinese company to buy a minority stake in the company. 

MCQE’s general assembly approved a cash dividend distribution of EGP0.75/share instead of the proposed EGP0.50/share for FY22, implying a dividend yield of 3.7%. 

EKHO's general assembly approved a cash dividend distribution of 11 cents per share, implying a dividend yield of 9%, that will be distributed in USD, even to the holders of the EGP-denominated shares.  

AIH released FY22 results, with net attributable income at EGP77.6 mn (-25% y/y). The decline came in despite a growth in the top line of 7% y/y, mainly due to higher expenses, higher FX losses, and lower capital gains. AIH BoD approved distributing cash dividends of EGP20.2 mn, DY of 4.5%, and 0.05 bonus shares/AIH original share.  

ATLC is going to distribute cash dividends of EGP0.424/share, DY of 10%. The record date is April 11th and the distribution date is April 18th. 

CANA’s BoD approved increasing the paid-in capital from EGP3.6 bn to EGP4.6 bn, through bonus shares (0.27 bonus shares/CANA share). 

The Suez Canal Economic Authority is preparing to deliver in May 2023 the Suez Canal Containers Company, at a total investment cost of USD500 million, increasing the capacity to 7 million containers. 

*Weekly Commodities​* |  Last Price           WoW Change, % 

Crude Palm Oil, USD/MT             886.0    7.6% 

Brent, USD/bbl  79.8      6.4% 

LME Aluminum Cash Price, USD/ton        2,376.8 3.5% 

Steam Coal FOB Newcastle Australia, USD/ton    177.3              1.1% 

LME Copper Cash Price, USD/ton             9,003.5 1.0% 

• Market Overview 
• COMI
• MNHD
• ASCM
• BTFH
• ABUK
• FWRY

Prepared by: Mayada Amin- CETA, CFTe