- Market Overview 
- COMI
- EFIH
- MNHD
- TMGH
- EAST
- ATQA
- ALCN
- MPCO
- RACC


prepared by: Mayada Amin- CETA, CFTe

Saudi Arabia’s sovereign wealth fund is in advanced talks to acquire Egypt’s state-owned United Bank in a deal that could be worth about USD600 million (EGP14.76 billion). The transaction implies higher-than-sector-average multiples.

In light of the mounting pressures, we expect the CBE to considerably hike interest rates by 200bps, maybe sooner than its meeting planned on 22nd December, with a likely EGP adjustment that might reach c.15%.
 
Prime Minister has called for oversight bodies to set a deadline for all shops and retailers to start putting price tags on commodities put for sale, with inspection tours to be carried out periodically to ensure the enforcement.
 
The German government is allocating EUR360 million to finance development projects in Egypt.

The Federal Reserve is expected on Wednesday to raise interest rates for the seventh time this year to combat inflation.

Gold could be listed on the newly-launched Egyptian Mercantile Exchange (EMX) in 1Q23.

Food industry exports grew by 0.5% YoY in the first ten months of 2022 to USD3.5 billion.


The National Investment Bank sold part of its stake in ADIB amounting to 7.6% of the bank's shares to Respond Investment Company, so that its ownership decreased from 10% to 2.4%.

HRHO’s consumer finance arm, vaIU has issued EGP854.5 million worth of securitized bonds.

Egypt’s renewable energy capacity is on track to grow some 65% by 2027, thanks primarily to new offshore wind projects.

MCRO recorded net profit of EGP129.4 million (+21% YoY) in 9M22.

The Pharmaceutical Holding Company, HoldiPharma, is currently planning to localize the raw material industry in Egypt, in cooperation with India and China. 

Market overview 

Prepared by: Mayada Amin- CETA, CFTe

Stocks that did not fully reflect inflation and exchange rate weakness: CIEB, EFIH, JUFO, TMGH, ORHD, PHDC, HELI, EKHO, ORAS.

The cabinet approved plans for Egypt to join the New Development Bank, a multilateral lender set up by Brazil, Russia, India, China, and South Africa (the BRICS).

The House of Representatives has given a preliminary nod to the government’s proposed Retail Stores Bill. A Local Development Ministry decree published in the Official Gazette named 83 different commercial activities that will require the sign-off of security directorates to go legit.

AUTO finalized the sale of 7.5% stake in MNT Investments with total proceeds of USD60 mn, and an earnout component that could potentially lead to total proceeds of USD71.3 mn, should it come into effect. The transaction values MNT Investment at a total of USD800-951 mn, and AUTO’s remaining stake of 49.5% at USD396-471 mn.

ESRS raised the price of rebars by EGP1,000/ton to EGP21,450/ton (including VAT) as of December 12, 2022, 5% higher than the EGP20,450/ton in the beginning of December. 

Subsidiaries of Gulf wealth funds have submitted bids as part of consortiums with other local and foreign investors to build the 21 desalination plants the government is tendering to the private sector. Four plants will be awarded by mid-January or early February. Among the bidders are Saudi PIF, Abu Dhabi’s ADQ, the Qatari Investment Authority (QIA), Hassan Allam Holding, Al Nowais, Schneider Electric, and a consortium made up of Metito Holdings, Scatec, and ORAS.

Egypt-based Engineering Consultants Group was awarded a contract to design a multi-purpose hall for Neom in Saudi.

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 4 February 2023.

PACH stated that it did not receive any news regarding National Paints increasing the acquisition offer to EGP32/share instead of EGP29/share.

The volume of instantaneous transactions that took place between banks during the first 11 months of this year exceeded EGP109 trillion, up 65% YoY.

SAUD Capital for Financial Investments, a subsidiary of SAUD, launched Tanfeez, specialized in real estate investment and urban development.

CANA issued a new certificate with a return of up to 17% annually.

MHOT opened its Safir Dahab resort which encompasses 159 rooms.

Market Overview 



Prepared by: Mayada Amin- CETA, CFTe

Annual urban inflation rate in Egypt jumped to 18.7% in November, up from 16.2% in October.

According to local media, the CBE renewed its instructions not to approve requests to import 13 commodities without obtaining its prior approval.

Vodafone Plc’s South African subsidiary, Vodacom, has closed the acquisition of its parent company’s 55% stake in Vodafone Egypt. On a separate note, QIA acquisition of a 20-25% stake in Vodafone Egypt (out of ETEL’s 44.95% stake) is expected to close towards the end of this year or during 1Q23, according to local media.

The Finance Ministry extended the e-invoicing registration deadline for self-employed individuals until April 2023.

Hisham Ezz El Arab was appointed non-executive chairman of COMI last week. 

MNHD intends to expand to West Cairo in 1H23, is looking at land plots on the North Coast, and expects real estate prices to increase by 15%-20%.

CLHO announced the execution of a 15-year agreement with the Fund for Housing and Social Services of the Petroleum Sector to upgrade, build out, and operate key medical units in the Petroleum Medical Center in Suez Governorate.

Oil price settled lower on Friday, recording its biggest weekly decline in months. Brent crude settled 5 cents lower at USD76.10/bbl.

Market Overview 


Prepared by: Mayada Amin- CFTe, CETA

We published this morning our earnings expectations for companies under coverage in 4Q2022/FY2022/FY2023, where 4Q2022 should be a stable quarter YoY, with some developments.

The CBE clarified that the draft law amending some provisions of the Unified Tax Procedures Law submitted by the government is only related to exchanging information with foreign tax authorities and not with the Egyptian Tax Authority for local purposes. The CBE confirmed that the aforementioned draft law does not affect the confidentiality of bank customers’ accounts in Egypt.

Deputy Finance Minister Ahmed Kujouk said that Egypt will obtain USD1 billion from the WB, USD200 million from the African Development Bank and USD400 million from the Asian Investment Bank, before the end of the current fiscal year.

Egypt is targeting between USD1.5 billion and USD2.5 billion from the issuance of its first sovereign Sukuk.

The PM said that the government succeeded to attract USD9 billion in direct investments, the highest in 15 years.

Companies applying for the government’s golden license for industry will no longer need to meet a minimum issued capital requirement.

As the government looks to reassure the market, they issued a report responding to claims and rumors circulating about the economy. The PM emphasized that the government is working on a plan to secure the nation’s FX needs until the end of FY 2022-2023.

Egypt signed MoUs with seven companies and consortiums including Saudi renewables player Acwa Power and Qalaa Holdings, to conduct feasibility studies on new projects to produce green hydrogen and its derivatives.

The PM said that the government announced a plan to benefit from state assets assets, whether through offerings during the first quarter of next year or through partnership projects with strategic investors and the private sector.

Etisalat UAE is considering acquiring an undisclosed stake out of Vodacom’s 55% stake in Vodafone Egypt.

Ministry of Transportation to open and evaluate the technical and financial proposals of Abu Qir - Alexandria underground project bid in March 2023, at initial cost of EUR1.5 billion. Among the bidding consortiums are SWDY and ORAS.

We remind you that EGTS’s (FV: EGP1.68, EW) next court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is, if not further postponed, on 10 December 2022.

Companies that work on the engineering side of the automotive industry will now be able to enjoy incentives provided to businesses under the Investment Act.

Al Amal Company, the local agent for BYD and Lada decided to decrease their utilization rates by 30% through operating only 4 days a week starting the current December, as a measure to the current market turbulence and decline in demand.

Egypt plans to offer a global bid for oil and gas exploration in the Mediterranean and Western desert before the end of the current year.

Cyprus’ Aphrodite field will see a new round of drilling in early 2023. Cyprus is trying to accelerate development so the first shipment could reach Egypt by 2027. 

- Market Overview 
- MENA
- RAYA
- ADIB
- ATLC
- EAST



prepared by: Mayada Amin - CETA, CFTe

We issued this morning our equities strategy for 2023, titled "Despite Challenges, Valuations Do Stand Out", in which we present: 
•Macro Backdrop| A Bumpy Road to Recovery
•Equity Strategy| An Overdue Catch-Up Supported by EGP Weakness
•Data Screens| All-in-One Deck
•Sector Reviews| Outlook, Hopes, Fears, Top Picks, and Stocks Awaiting Catalysts

The IMF’s executive board will discuss Egypt’s request for a new extended fund facility next Friday, 16 December. Finance Minister said earlier this week that we could receive the first USD750 million tranche of the bailout loan before the end of the year.

Net International Reserves inched up to USD33.53 billion at the end of November, up from USD33.41 billion a month earlier, on higher value of gold component.

Oil prices tumbled to its lowest level on Tuesday, with Brent finishing below USD80/bbl per barrel for the second time in 2022.

The New Administrative Capital Company aims to enter into four partnerships with real estate developers at the beginning of 2023.

Sherif ElZayat sold his entire stake of 6.01% (66.6 million shares) in SPMD at an average price of EGP0.43 per share and a transaction value of EGP28.86 million.