Prime Minister has met with the central bank governor and Trade and Industry Minister to discuss allowing importers to purchase certain goods — including raw materials and manufacturing essentials — via documentary collection rather than L/Cs.

The EGP continued to slide yesterday, hitting 19.26 against the USD.

Finance Minister denied that there are any requirements by the IMF that affect social protection programs or lead to raising the prices of subsidized bread.

The Ministry of Finance now expects the budget deficit to narrow to 5.6% this year (FY22/23) and 5.0% in FY23/24, down from 6.1% in FY21/22. The primary surplus will rise to 1.6% for FY22/23 from 1.3% in FY21/22.

The debt-to-GDP ratio rose from a forecasted 85% to 85.3% during FY21/22.

Egypt plans to issue Chinese Yuan-denominated bonds worth more than USD 500 million.

The government is still hoping to offer shares in state companies on the EGX between September and December.

The Madbouly government is in talks with unnamed Chinese investors to build and finance a USD 2.3 bn complex to make solar panel components.

Cabinet has given its approval to pay a total EGP 10 bn out to exporters in export rebates, with payments to be made on 1 October and 1 December. 

ABUK decided in its BoD to establish a new company “North Abu Qir Company for Agricultural Nutrients,” which will produce ammonia with a production capacity of 1200 tons per day, with an authorized capital of EGP10 billion and issued capital of EGP1 billion. The shareholding structure will be: ABUK with 45% (EGP0.35/ABUK share), EGPC with 45%, and ECHEM with 10%. 

AMOC invites its BoD to convene on the 24th of September, 2022 to decide on the FY21/22 cash dividends. We expect the yield to be north of 12%.

SWDY signed two new contracts: 1) to construct ElKhamael transformers station with a total value of EGP533.3 million; 2) to construct transformers station with a value amounting to EGP566.8 million. 

Beltone Financial shareholders will elect new board members and is planning to go ahead with a capital increase but only once it has formed a new board.

Tawasol Holdings and LimeVest Partners sent a letter to FRA offering to purchase 74% of Alex Medical at EGP57.67 per share. 

Weekly Commodity Update

Brent, USD/bbl            102.5   6.6%

Diesel-HSFO Spread, USD/ton 714.1   15.2%

Egypt Urea, USD/ton   785.0   2.6%

Polyethylene, USD/ton            1,100.0            -3.5%

Polypropylene, USD/ton         990.0   0.0%

Steel/Iron Ore Spreads, USD/ton        433.8   -1.0%

LME Aluminum Cash Price, USD/ton  2,502.8      4.0%

Egyptian Retail Cement, EGP/ton       1,463.0            6.4%

Steam Coal FOB Newcastle Australia, USD/ton          422.8   1.1%

Crude Palm Oil, USD/MT        919.1   -0.9%

SMP, USD/MT 3,524.0                        0.0%

- Market Overview
- COMI
- EKHO
- MTIE
- ISPH
- PHDC
- DSCW
- EMFD
- AIH
- SVCE

- Prepared by: Mayada Amin - CETA, CFTe

Prime Minister and CBE Governor discussed some proposed measures, within a specific time frame, to deal with the current economic situation to ensure complete integration and coordination in financial and monetary policies. 

According to the medium and long-term external debt repayment schedule, Egypt must repay USD8.57 billion during 2H2022 and USD 9.33 billion in the 1H2023. Egypt is also scheduled to pay international institutions about USD2.4 billion in 2H2022 and USD3.6 billion in 1H2023.

The government has received new offers for Gulf and foreign investment in green hydrogen projects in Egypt, with investments amounting to USD2.8 billion. 

Another 63k tons of Romanian wheat arrived at Damietta port yesterday. 

Hotel occupancy rates in Hurghada and Sharm El Sheikh are currently witnessing a recovery, with occupancy rate reaching 93% in Hurghada and 73% in Sharm ElSheikh.

SWDY will supply equipment for a transformer station at the New Delta project worth a combined EGP1.1 billion. SWDY is currently trading at 2022e P/E and EV/EBITDA of 5.2x. 

The holders of 32.47 million shares of DOMT responded to the tender offer submitted by "Expedition Investments", or 12% of the total shares out of 33% requested.

The Holding Company for Food Industries raised its stake in Al Fayoum Co. for Sugar to reach 20% after acquiring 17%, with a deal value of EGP305 mn. This implies an average P/E of7.2x and P/S of 1.2x, compared to 3x and 0.5x for Delta Sugar, respectively. SUGR owns a 26.83% stake in Fayoum Sugar.

Giza Systems, which is 44.7% owned by BINV won the tender to implement and manage the Intelligent Transportation within the New Administrative Capital, in partnership with the Ministry of Military Production. 

EMFD acquired 25.0% of Eagle Hills Egypt, its partner on the Soul project on the North Coast, at par value.

CSAG released FY21/22 bottom line at EGP185.5 million in FY21/22 (-7.3% YoY). CSAG is trading at a FY21/22 P/E of 13.5x.

- Market Overview
- COMI
- ABUK
- ALCN
- ORWE
 -PHDC
- TMGH
- AUTO
- AMOC
- CCAP
- EFIH
- FWRY



Prepared by: Mayada Amin - CETA, CFTe

Talks with the IMF are still ongoing and are in the “final stages.” 

The government will roll out new emergency social protection measures this Thursday, where one million families join the Takaful and Karama programs as the state also raises ration card allowances and disburses emergency aid. 

CBE will go much faster in terms of currency adjustment; not a sudden devaluation, but at a faster pace.

GDP growth recorded 6.6% in FY2021/22. High contribution to the GDP growth was recorded by sectors like manufacturing industries and restaurants and hotels. 

Federal Reserve Chairman dashed market hopes that the central bank could slow interest rate hikes in a speech on Friday, triggering the biggest single-day rout in US stocks since June.  

The General Authority for the Economic Zone of the Suez Canal aims during the coming period to localize 15 industrial and service sectors, including green fuel, solar panel manufacturing, and logistics. 

The Central Bank revealed that it obtained USD13 billion in short-term Gulf deposits during the first quarter of 2022. Those are in addition to USD14 billion in medium and long-term deposits.

Japan pledged USD30 billion in development aid for Africa during Japan’s Africa Investment Conference. 

South Korea’s state nuclear power company signed a USD2.2 billion contract with Rosatom to supply equipment and help build the 4.8 GW Dabaa nuclear plant. 

Seven international companies have signed early agreements to build facilities that will produce millions of tons of green fuel in the Ain Sokhna Industrial Zone. The plants will have a combined annual capacity of around 5.5 million tons, with the fuel to be exported and sold to the shipping industry. 

Egypt’s commodities exchange could go live before the end of the year, with trading of gold set to start as a first phase. 

Cabinet gave initial approval to award state-owned EGAS and Italy’s Eni the rights to explore for gas in the Northeast Arish offshore concession, with further approvals needed before drilling.  

Rami El Dokany has been named Head of the EGX for a one-year term. 

The Central Bank of Egypt raised the daily limit that individuals and businesses can withdraw in-branch from their bank accounts and scrapped limits on cash deposits at both bank branches and at ATMs. 

CICH 2Q22 net profit recorded EGP187 million (+21% q/q, -1% y/y), bringing 1H22 net profit to EGP341 million, up 100% y/y. 

ValU acquired 100% of Paynas at a value of USD18 million. The transaction was completed through a stock swap, where Paynas shareholders acquired an estimated 6% stake in the issued share capital of ValU.

Qatar for Investment is eyeing acquiring part of the Holding Company for Chemicals Industries' stake in EAST, with the deal expected to take place during the next few days.

AUTO assured in a release that the company did not enter any agreements in regards to the sale of its 57.26% owned MNT-Halan.

- Market Overview
- COMI
- EFIH
- AUTO


- Prepared by: Mayada Amin - CETA, CFTe

CBE Acting Governor Hassan Abdalla has appointed Hisham Ezz Al Arab and Mohamed Naguib as his advisors. 

The meetings held yesterday by the CBE and key cabinet members have stoked expectations that they may be looking for ways to ease import restrictions. 

According to local press, the process of opening letters of credit necessary to import some commodities and production components witnessed relative facilitation, and banks began to procure foreign currency for some importers. However, a banking official explained that the system of priorities in opening letters of credit is still in place, but it takes into account the seasonal demand for some commodities that do not have local alternatives.

Sovereign Fund of Egypt has attracted investments worth USD3.3 billion during the current year from Arab sovereign funds.

SWDY's subsidiary, Elsewedy Transport & Distribution, has started operating electric bus charging facilities at Adly Mansour Central Interchange Station. Elsewedy T&D is also working on the electric bus charging station in Sharm El Sheikh as part of preparations for the COP 27 summit in November. On a different note, SWDY's extraordinary general meeting approved decreasing the company’s issued and paid-up capital to EGP2.17 billion through cancelling 13.4 million treasury shares.

Seven local entities won two major tenders for the supply of cables and electrical supplies to South Cairo Distribution Company with a total value of EGP1.5 billion. The companies include Egytec, a subsidiary of SWDY. 

SVCE announced its 2Q22 financial results with losses deepening to EGP85.9 million from EGP40.1 million in 2Q21.

Ministry of Electricity is to issue a tender to foreign and local companies to launch seven major transformers stations with medium voltage of 220 kV to serve the New Delta project.

Some 250-300 companies have taken out conditions booklets for a tender for three industrial complexes comprising 1k units in Upper Egypt for micro, small, and medium enterprises.

ALCN net profit increased 67.6% YoY and 21.6% QoQ to record EGP667 million in 4Q21/22, bringing FY21/22 net profit to EGP1.9 billion in, up 37% YoY.

According to local media, Qatar’s Sovereign Wealth Fund is interested in investing in ALCN; however, the company has not received an offer yet.

PACH’s BoD appointed Al Ahly Pharos to advise on choosing between the multiple acquisition offers. On a related note, a new company intends to compete with Sipes and Saybad with an acquisition offer.

Oil prices rose again over the USD100/bbl mark. Brent crude is now trading at USD101.97/bbl.

Industry experts are declaring that cars' spare parts have been witnessing a sharp increase in prices.

CIRA is in negotiations with NBE to borrow EGP800 million to finance the construction of the new technological university in partnership with Al Ahly Capital with a total investment cost of EGP2.1 billion.

Savola plans to invest over EGP1 billion in the Egyptian Belgian Company to increase production. The company also recently acquired another snack food factory in Egypt, which will come online next year.

BINV received a letter from Total Energies Marketing Afrique (TEMA), entailing that TEMA has extended the deadline for BINV until 15 September 2022 to exercise the right to purchase 34.62% of TEMA's shares in Total Energies Marketing Egypt on the same conditions as the offer received from ADNOC. 

Prime Holding denied receiving any acquisition offer in reference to rumors published yesterday concerning an acquisition offer by Arqaam.

AIH released 1H22 results where consolidated net attributable income stood at EGP36 million, implying a 14% y/y decline.

Market Overview (EGX30 - EGX70 EWI)
- COMI
-CLHO
- AUTO
- HRHO
- ISPH
- MNHD
- FWRY
- SKPC
- ABUK


- Prepared by: Mayada Amin - CETA, CFTe

Remittances hit a record high in FY2021/22, rising 1.6% YoY to USD31.9 billion. During the period from April through June 2022, remittances increased by 3% YoY to record about USD8.3 billion.

GASC bought 240,000 tons of Russian wheat directly from suppliers for delivery in September, October, and November. 

Minister of Trade and Industry will hold a meeting with the CBE Acting Governor to discuss the most prominent problems facing the industrial sector.

The Ministry of Supply obligated rice farmers to supply 25% of their crop in the new harvest season.

Egypt Kuwait Holding Co and Egypt Kuwait Holding EGP will not be deleted from the FTSE Global Equity Index Series Mid Cap Index.

EGCH 4QFY21/22 net profit amounted to EGP207 million, up 38% QoQ, and compared to a net loss of EGP405 million in 4QFY20/21, bringing FY21/22 net profit to EGP689 million, compared to a net loss of EGP1.424 billion in FY20/21.

Only e-invoices will be accepted as proof companies have paid VAT on goods and services starting in April 2023.

Arqaam Securities intends to submit an offer to acquire Prime Holding at EGP0.945/share. 

HELI aims to sign the final contract with Mountain View for the co-development of the Heliopark land plot before the end of 2022.

- Market Overview
- COMI
- MNHD
- HELI
-  PHDC
- TMGH
- ELSH


 Prepared by : Mayada Amin - CETA, CFTe