- Market Overview
- COMI
- HELI
- ABUK
- AMOC
- HRHO
- EFIH
- ESRS
- TMGH


Prepared by: Mayada Amin- CETA, CFTe

The IMF said it is working closely with the Egyptian authorities; Egypt is negotiating a program of support and technical advice” that “may include additional financing

The EGP strengthened a bit against the USD yesterday, settling at EGP 18.42

Ministry of Electricity plans to review the tariff structure for selling electricity to consumers in July, considering EGP weakness and higher gas prices

In addition to stakes in COMI and FWRY, ADQ is acquiring state-held stakes in ABUK, MFPC and ALCN for USD2 bn

More than EGP 100 bn has been invested in the 18% CDs offered by NBE and BM

CBE has launched a national digital payment app, InstaPay, which provides instant and secure payments between Egyptian banks, Meeza cards, and mobile wallets

HRHO’s Egypt Education Fund plans to invest USD30-40 mn over the next 18 months in two different transactions, and plans to make its first investment in a nursery

HRHO’s RX Healthcare Fund is looking into two or three majority stake acquisitions of pharma companies in transactions valued at between USD 200-500 mn, each

HRHO’s renewable energy platform plans to reach a second close worth USD550 mn for its Vortex Energy IV fund within the next two years, bringing its total capital to USD750 mn

HRHO is also looking into launching a new MENA tech fund

HRHO’s Valu will set foot in Saudi Arabia before the end of 1H22; looking at the Moroccan and Tunisian markets in cooperation with HRHO’s e-payments subsidiary PayTabs

Valu is also planning to acquire two companies in a field that complements consumer finance, where both are worth a combined USD20 mn

Valu is looking to double its revenues to EGP5 bn this year from EGP 2.4 bn in 2021

CICH’s net income rose 44% y-o-y to EGP 269 mn in 4Q21, and rose 44% y/y in 2021 to EGP681 mn; Stock is currently trading at P/E22 of 6.9x and P/B22 of 1.1x

EFID raised prices for some of its products by EGP 1-2 within the bakery and wafer segments

A Chinese company presented an offer to the Egyptian government to supply electric "TukTuk" with zero emissions to replace the regular one

Oil prices rose due to a technical stoppage in the Caspian Sea pipelines that delayed Russian oil exports; Brent was up 2.7% to register USD118.61/bbl

Aluminum producers in Egypt raised the local prices per ton to EGP100,000 (USD5,400), up from EGP85,000 previously, after EGAL raised the prices of aluminum ore for all local factories to EGP76,500 (USD4,135) per ton, up from EGP66,000, excluding 14% of the value-added tax

Banque Misr raised its stake in FWRY to 15.8%, purchasing an 8.85% stake, at an average price of EGP9.75/share

EGTS reported lower FY21 net loss of EGP6.8 million, compared to FY20 net loss of EGP45.5 million

MNHD subscription period for the 2.5% remaining portion of its capital increase is open from 27 March to 29 March

- Market Overview


_ Prepared by: Mayada Amin - CETA, CFTe

The EGP eased another 1.6% against the greenback yesterday, settling at EGP 18.57

Moody's considered that the CBE will help protect the country's FX reserves and secure a new program with the IMF 

Ministry of Finance plans to sell USD500 million in JPY-denominated bonds in Japan on Thursday

The government revised downwards its GDP forecast for FY2022-23 to 5.5% down from the 5.7% 

Suez Canal Authority will raise fees, temporarily, by 7-10%, starting May

Tourism incentives such as cash subsidies to charter flights are extended until the end of October 2022

More than EGP 51 bn has been invested in the CDs launched by Banque Misr and the National Bank of Egypt since their launch on Monday

The government received requests from Emirati companies and consortiums to set up hydrogen and green ammonia projects in Egypt with investments of up to USD4 billion

US President Joe Biden will announce new sanctions on Russia when he travels to Brussels today to meet with European leaders and Nato officials, the White House said yesterday. This will drive Brent and commodity prices higher

ORAS released solid results where net attributable income increased 44% YoY to USD37 million in 4Q21 and 25% YoY to USD113 million in FY2021; We expect a promising year ahead for ORAS, given the current level of backlog (USD6 billion) that could be translated into a healthy USD4 billion in revenues next year; Transportation projects in Egypt are considered the most substantial in terms of size; Water and industrial projects are expected to highly contribute to the company’s growth targets; ORAS is currently trading at FY21 P/E 4.2x and EV/EBITDA of 0.1x

MOIL reduced its net losses to USD78.07 million in 2021, from losses of USD143.26 million in 2020, despite the decline in revenues from USD180.53 million in 2020 to USD115.83 million in 2021

JUFO denied any intention for Mohammed Bin Abdullah to sell his 12.5% stake in Pharon Company for Investments

- Market Overview
- COMI
- EFIH
- FWRY
- ADIB
- HRHO
- SKPC
- SWDY
- EAST


- Prepared by: Mayada Amin - CETA, CFTe

CBE allowed the EGP to fall 16% against the USD to EGP 18.27 to the USD

CBE raised interest rates by 100 bps at a special monetary policy meeting

National Bank of Egypt and Bank Misr offer one-year certificates of deposit at 18% yield

The government is re-introducing the monthly customs exchange rate, setting it at EGP 16 for imports of basic commodities and materials used for manufacturing

Which companies will benefit from a weaker EGP versus the USD? Mainly exporters and the industrial sector have a direct benefit; ABUK, MFPC, EGCH, EKHO, ESRS, IRAX, EGAL, SKPC, AMOC, ORWE, ALCN, SWDY, RACC, ECAP, LCSW; Indirect benefit to real estate developers and banks through inflation (nominal impact on their size)

Which companies will benefit from interest rate rise? Banks whose treasury exposure out of total assets is the highest: FAIT, EGBE, SAUD, COMI; Banks whose funding base is of low cost: HDBK, COMI, CIEB, ADIB; COMI is a winner on both points above, and at current multiples, it is a top pick (P/E of 5.9x and P/B of 1.0x); Cash-rich companies: EMFD, MBSC, HRHO and ABUK

Ministry of Finance approved a package of social protection procedures, worth EGP130 billion

The capital gains tax on IPOs is being slashed by 50% for a two-year period

ADQ wealth fund will purchase up to 18% of COMI, unspecified stake in FWRY alongside three other companies

Sovereign Fund of Egypt has lined up investments for Egypt worth more than USD 2 bn

SKPC approved in its OGM the issuance of 1:5 bonus shares; SKPC trades at 2022 multiples of P/E 5.7x and EV/EBITDA 4.5x.   

HELI Board approved the sale of a receivables portfolio for EGP320.0 million (EGP0.24/share) to EXPA

Weekly direct flights between Baku and Sharm El Sheikh resumed on 18 March 2022

Weekly Commodities Update

Brent futures are trading at USD112.90/bbl and averaged USD95.34/bbl YTD

Egypt Urea Index increased by 3% WoW and prices are currently at USD1,130/ton (ABUK)

Polyethylene (HDPE) prices were up 9% WoW and prices are currently at USD1,510/ton (SKPC)

Diesel-HSFO spreads were up 26% WoW and are at USD528/ton (AMOC)

Polypropylene prices climbed to reach USD1,350/MT, higher WoW by 5.5%

Steel/Iron Ore spreads rose by 2% to USD621/ton compared to last week (ESRS)

Aluminum prices retreated this week by 3% to stand at USD3,381/ton (EGAL)

Retail cement prices in Egypt remained stable at the range of EGP1,450 -1,550 per ton

Steam Coal came down 9% WoW to record USD336/ton

Crude palm oil prices dropped to reach USD1,4230/MT, -9.8% WoW

SMP prices rose by 1.4% to reach USD4,545/MT 

- Market overview 
- COMI
- CIEB
- EKHO
- ETEL
- ABUK
- HRHO
- HELI



- Prepared by: Mayada Amin - CETA, CFTe

Ministry of Finance has revised its fiscal targets for FY2022/23 to 6.3% of GDP, compared to a previous target of 6.1%, and the primary surplus to 1.5% down from 2%

President El-Sisi directed the government to prepare a package of financial and social protection measures to mitigate the effects of global economic repercussions on citizens

Foreign holdings of T-bills increased in January 2022 by about USD800 million to USD21.3 billion

EFIH announced a USD10 million investment in Nclude Fund, a venture capital USD85 million fund focused on investing in early- and growth-stage Egyptian fintech as well as Middle East and Africa based fintech startups with National Bank of Egypt, Banque Misr, and Banque du Caire

EFIH board approved a partnership with one of the sister companies to purchase a land plot in the new administrative capital and to co-fund the construction 

CLHO reported solid 2021 net attributable profit of EGP387 million in 2021, + 35.0% YoY; On a quarterly basis, net profit recorded EGP115 million (+7.1% YoY), CLHO is currently trading at 2022f P/E of 15.3x and EV/EBITDA of 7.6x

ISPH reported healthy 2021 net profit of EGP315 million in 2021, +40.1% YoY; On a quarterly basis, net profit stood at EGP73 million in 4Q21 (2x YoY); Management 2022 Guidance: Revenues are expected to grow by around 15%, GPM in the range of 7.7%, NPM in the range of 1.6-1.7%; Proposed dividends of EGP0.10 per share (DY 3.4%); ISPH is trading at 2022f P/E of 6.7x and EV/EBITDA of 4.4x

British American Tobacco Egypt announced that it will raise its prices between EGP 1-3 per pack, as a result of the central bank’s decision to require letters of credit (L/Cs) from importers

MNHD’s rights issue for its EGP374.4 million capital was 97.5% subscribed

PHDC raised its stake in Incolease (ICLE) to 15.36%. The total transaction value of the 15.36% stake is estimated at EGP126.0 million (EGP0.04/PHDC share)

SKPC is studying the establishment of a new plant to produce polylactic acid as an environmental alternative to polymers and plastic raw materials

CBE: As of January 2022, loans amounted to EGP3.032 trillion, compared to EGP2.455 trillion (+23.5% YoY), while deposits increased to EGP6.45 trillion (+24.3% YoY)

ElSisi has ratified amendments to the Capital Markets Act that introduce future flow securitization; Supports utility providers, healthcare companies, telecom players, and education outfits

FRA is looking to introduce new mechanisms to assess NBFS market conditions and gauge lenders’ exposure to risk

- Market Overview 
- ABUK
- AMOC
- AUTO
- CCAP
- COMI
- HRHO
- MFPC


Prepared by: Mayada Amin -CETA, CFTe

It is MPC Week. We expect the CBE to prefer to act aggressively with a 150-bps hike, trying to anchor inflation outlook as well as debt competitiveness on an even keel in light of global monetary tightening.

Egyptian officials are in talks with the IMF over potential forms of a new assistance program, which could be either a precautionary and liquidity line or a non-financial policy coordination instrument (Bloomberg)

Cabinet raised the prices of household and commercial butane gas cylinders by 7%

Minister of Petroleum, called on oil companies to quickly develop the discovered fields, to take advantage of the global increase in oil and gas prices

The Green Fuel Alliance submitted a proposal to the Suez Canal Economic Zone to establish a project to produce green ammonia with a capacity of 600 tons per day and investments amounting to USD1 billion

First Abu Dhabi Bank is in discussions to fully acquire GB Lease; Previous transaction multiple was 1.75x P/B; GB Capital had a total book value of EGP4,687 mn at year-end 2021; GB Auto is currently trading at a FY22 P/E multiple of 3.5x

The Saudi investor, Mohammed Bin Abdullah, is intending to sell his indirect 6% stake in JUFO, through selling his stake of 12.5% in Pharon Company for Investments, which owns nearly 50.1% in JUFO

ORHD reported solid 4Q21 and FY21 figures, with 4Q21 sales up 61.4% y/y and 34.0% q/q to EGP3.0 billion, bringing FY21 sales up 48.8% y/y to EGP9.2 billion; 4Q21 net profit decreased 53.3% y/y and 79.8% q/q to EGP87.9 million due to an increase in provisions, bringing FY21 net profit up 127.1% y/y to EGP1.2 billion; Russian and Ukrainian tourists represented only 3.0% of ORHD’s total foreign occupancy 

Egypt launched a new tourism promotional campaign in markets including the UK, Germany, Italy, France, and the US

Hotel occupancy rate in Sharm El Sheikh is now less than 35.0%, down from more than 60.0% in January 2021; Luxor and Aswan hotel occupancy rates have risen to 60-70% this winter season

The UK no longer advises against all but essential travel to South Sinai and Fayoum

Travelers arriving to the UK from abroad no longer need to take any covid tests, Canada is also dropping travel restrictions; Negative impact on diagnostics players (IDHC, SPMD) and pressure their revenues and margins after being pumped up (on the back of PCR testing and covid related tests) in 2021

Arab Contractors intends to resume its activities in the Libyan market with investments of approximately USD120 million; We await the resumption of reconstruction projects in Libya, as a key driver for contractors' awards (ORAS and SWDY)

Moon Capital Partners Master Fund increased its shareholding in EKHO to 4.54% from 2.80%, through buying 19.6 million at an average price of EGP21/share