·         Fitch Rating said that Egyptian banks’ Viability Ratings (VRs) could come under pressure, if the banks’ foreign assets continue to drop.

·         A group of Gulf banks completed arranging a USD3 billion joint loan for Egypt, equally divided between Islamic and green financing, for a period of 3 years.

·         Egyptian Tax Authority said that a draft law approved by Cabinet imposes a lump-sum tax on real estate transactions concluded before May 2013.

·         National Bank of Egypt, Banque Misr, Banque de Caire, Arab African Bank, and Export Development Bank started the procedures to establish a joint-stock company to support exports and import substitution, with a capital of EGP250 million. 

·         Ethiopian government announced plans to clear 17k hectares of forest in preparation for the third filling of the dam this summer. 

·         Apicorp and IsDB) have launched a three-year, USD 1 bn initiative for private-sector focused infrastructure financing, in countries including Egypt.

·         FWRY intends to launch an electronic application that provides instalments purchases through its subsidiary Fawry Consumer Finance, with an expected initial portfolio size of EGP30.0 million.

·         CBE will allow banks to launch digital lending services via mobile wallets this year. 

·         CBE: Volume of credit facilities granted to the largest 100 clients amounted to EGP507.6 billion at the end of June 2021, + 19% YoY.

·         President El-Sisi directed to launch an initiative to support the health sector by providing a financing package with interest ranging between 5% and 8%.

·         IRAX has restructured debts exceeding EGP12 billion. 

·         Taaleem saw a 23.7% y-o-y increase in its bottom line in 1Q2021-2022 to EGP 71.9 mn. TALM is trading at 15x FY22 P/E, based on earnings of EGP240 mn. 

·         OCDI shareholders will vote on the company’s new board of directors at an extraordinary general meeting today.

·         The Grand Egyptian Museum could open its doors in 2H22.

·         The Supreme Council for Wages received many requests from tourism companies to exempt them from paying the minimum wage until the end of 1Q2022.

- Market Overview
- COMI
- ABUK
- EKHO
- ORAS

- Prepared by: Mayada Amin - CETA, CFTe

Egypt plans to develop industrial mining cities for the extraction of gold, copper, and phosphate. 

The Minster of Petroleum said that Egypt is benefiting from the additional high returns from the export of LNG, which were not taken into account in the budget projections, creating a relative compensation for the increase in oil prices.

The trade deficit decreased by 12.5% ​​during October 2021 to record USD2.63 billion; Exports increased by 48.2% YoY, recording USD3.76 billion; Imports increased by 15.3% YoY, reaching USD6.39 billion

The Ministry of Finance decided to complete the fourth phase of the “Instant Cash Payment” initiative to support exporters

The US CPI rose 7% YoY in December, the fastest since June 1982 - but in line with economists’ forecasts - feeding the expectations that the Fed will raise interest rates this year

QNBA 4Q21 net profit pre-minority interest and appropriations recorded EGP1.62 billion (-15% q/q, -12% y/y), bringing FY21 bottom line to EGP7.63 billion (+1.8% y/y). 4Q21 bottom line annual and sequential decline was driven by record provisions (more than tripling q/q) and high effective tax rate.

SWDY announced that its subsidiary El Sewedy Electric for Trading & Distribution (99.8% owned by El Sewedy Electric) signed a new contract worth EGP443.4 million for the lighting of South Ben Zayed Road in the New Administrative Capital

EGX listing committee approved the listing of 45.8% of Macro Group Pharmaceuticals (MCRO)

- Market Overview
- COMI
- ABUK
- FWRY
- MTIE
- CERA

- Prepared by: Mayada Amin - CETA, CFTe

-The World Bank upgrades its forecasts for Egypt's GDP growth to 5.5% in FY2021/22

-Bloomberg: Investors expect the Egyptian bond market to deliver more gains this year as it offers attractive real interest rates

-Federal Reserve Chairman Jerome Powell said that the US economy is both healthy enough and in need of tighter monetary policy 

-FWRY announced providing different e-payment solutions through the website of the Armed Forces Recruitment and Mobilization Department

-An agreement has been made with the Moroccan government to wave customs on all Renault cars that are produced in Morocco 

-The government is finalizing incentives to the local industry under a long-delayed automotive strategy. The measures could offer manufacturers customs discounts for using locally produced components

-El Sisi noted that Egypt will produce its first locally assembled electric vehicle next year; General Motors and Al Mansour are also in discussions to jointly produce EVs

-Kima’s CEO expected that the company would conclude the debt restructuring agreement with banks by February 2022, for its EGP6.4 billion debt facilities, with the aim of reducing interest payments

-Kima to build a new environmental-friendly factory instead of the Kima 1 factory during 1H2022, with investments of USD250 million, to be implemented within 24-30 months

-Kima signed a contract with Air Supply Group, to establish a new factory for the production of medical and industrial gases for Upper Egypt, with investments of EGP260 million 

-The Holding Company for Chemical Industries is seeking to manufacture green ammonia from hydrogen early next year, in cooperation with the Norwegian company Scatec; Project to be implemented in all companies affiliated with the holding company, including Kima

-MNHD closed its first EGP300.0 million securitization issuance

-AMER’s EGP1.1 billion sukuk issuance is expected to take place in 1H22; Board is proposing a capital decrease from EGP1.0 billion to EGP902.8 million through retiring treasury shares

-SPMD disclosed that the company has utilized EGP100 mn of the capital increase proceeds (EGP150.5 mn) towards Speed Hospital, 6 Misr Beni Suef labs, establishing 25 Speed labs, and launching Heliopolis Polyclinic

- Market Overview
- EAST
- ABUK
- EXPA
- FWRY
- OFH
- ETRS
- MFPC

- Prepared by: Mayada Amin - CETA, CFTe

·         Core inflation inched up at 5.97% YoY in December up from 5.8% in November

·         The Central Bank of Egypt issued a circular yesterday outlining the conditions and procedures for granting "emergency liquidity support " to banks operating in Egypt

·         EXPA aims to achieve a net profit of EGP917 million in 2022, compared to a target profit of EGP473 million in 2021

·         FRA revealed that the insurance companies’ premiums increased during the ten months ending October 2021 to EGP41 billion (+28.5% YoY), while claims reached EGP18.7 billion (+14.7% YoY)

·         Mortgage financing also increased during the same period by 152.5%, recording EGP5.88 billion. 

·         Leasing contracts recorded EGP7.03 billion pounds, growing by 196.4%

·         Microfinance activity stood at EGP25.01 billion, growing by 40.01%

·         Consumer finance activity reached EGP13.586 billion at the end of October 2021

·         e-Cards, a subsidiary of EFIH, and MoneyFellows partner to provide digital financing solutions to pension and cash support beneficiaries

·         e-Cards will provide smart cards for the distribution of fuel quotas to parties contracted with Misr Petroleum

·         Electricity production stations increased its dependency on mazut by 620% YoY during December 2021 with positive impact on AMOC 

·         PHDC (FV: EGP3.33, OW) is planning its sukuk issuance of EGP3.0 billion for 1Q22

·         ELSH is co-developing its land plot in the New Administrative Capital, whereby ELSH will be entitled to a 36% revenue share as land owner

·         TUI’s UK arm is seeing a rise in bookings to Egypt after the UK relaxed Covid testing requirements last week

Weekly Commodities Update

·         Brent futures are trading at USD82.2/bbl

·         The Egypt urea index was down WoW by 5% and prices are currently at USD845/ton,

·         Polyethylene (HDPE) prices were down 1% WoW and prices are currently at USD1,230/ton

·         Diesel-HSFO spreads were down 5% WoW and are at USD162/ton

·         Caustic soda prices were unchanged WoW and prices are currently at USD590/ton

·         Polypropylene prices came flat w/w, standing at USD1,150/MT

·         Steel/Iron Ore spreads are at the USD395 mark, up by 1% WoW

·         LME 3M Fwd Aluminum prices were up 2% WoW to record USD2,906/

·         Thermal coal prices were unchanged WoW recording USD186/ton

- Market Overview
- AMOC
- DOMT
- ORWE
- ATLC


- Prepared by: Mayada Amin - CETA, CFTe

-EFIH Initiation of Coverage| We arrived at a DCF valuation for EFIH of EGP42.08 billion, implying a FV post capital increase of EGP23.67 per share, an upside of 20.6%, with an overweight recommendation. EFIH is currently trading at 2022f P/E of 43.7x, and EV/EBITDA of 33.9x, at a discount of global peer average of 59.4x and 33.0x; respectively. 

-Customs Authority will begin a three-month trial extending its Advance Cargo Information (ACI) system to air freight, ahead of a full launch planned for April 2022 (EFIH). 

-e-Aswaaq Misr, a subsidiary of EFIH, signed an agreement with “Business Women of Egypt 21 (BWE21)” to market their products over the Aswaaq-Misr platform. 

-MNT-Halan, that is partially owned by AUTO, is looking at cross-border expansion this year, with current monthly throughput in Egypt at USD125 mn. 

-ADIB has raised the issued and paid-in capital of the Abu Dhabi Islamic Consumer Finance Company (ADI-CF), from EGP10 million to EGP30 million. 

-MFPC (Mopco) has appointed Ibrahim Mahgoub as its new chairman and managing director. 

-OCDI signed an agreement to establish the Finnish British School (FBS) in SODIC East.  

-PORT EGM approved the company’s name change to Arab Developers Holding. 

-Saudi Arabian Sovereign Wealth Fund expressed interest to partner with Egypt's sovereign fund in implementing renewable energy, green hydrogen and water desalination projects in Egypt. 

-Minister of Industry and Trade noted that Egypt aims to achieve exports worth USD60 billion by 2025, up from USD31 billion recorded in 2021. 

-Suez Canal reduced the discounts offered to shipping lines by 5-10%, starting from January until June 2022. 

- Market Overview
- ABUK
- ETEL
- PHDC
- EGAL
- EXPA
- UEGC

- Prepared by: Mayada Amin - CETA, CFTe