Fed announced it will speed up the taper of its asset-purchase program; Indicated it sees as many as three rate hikes in 2022, of 25 bps each

Expect MPC to keep rates unchanged, as real yields on treasuries are still competitive, inflation is still within the CBE's target

A new plan to develop exports to Africa will be announced by mid-January 2022 from the current USD3.97 bn

Snacks, crackers, and pastries will not be subject to a 14% VAT; Positive development for EFID since higher VAT would have initially impacted demand

FRA requested IRON to determine the expected timeframe for its land bank valuation, change of license, and liquidation

CANA contracted Advanced Financial Solutions to supply and operate the bank with an integrated automated system for comprehensive risk management

- Market overview
- ORAS
- EMFD
- ESRS
- HELI
- ORHD
- RMDA

- Prepared by: Mayada Amin, CETA - CFTe

Egypt’s economy is expected to grow at c.6-7% in 2Q21/22 and end FY21/22 with a GDP growth rate of 5.5% to 5.7%

Suez Canal recorded the largest monthly revenues and net tonnage in November, of USD571.3 million and 113.5 million tons, respectively

Egypt and Russia are in talks to establish a joint company to supply grains to Egypt and improve its food security

Financially distressed SMEs will be given more time — and more avenues — to settle their debts under a new initiative from the CBE to support SMEs in weathering the pandemic repercussions

Egyptian Tax Authority will start today phase 5 of the e-receipt implementation by including 3,737 companies into the platform (EFIH)

Steel manufacturers interested in the new steel licenses from Industrial Development Authority (IDA) want the authority to slash the license prices, requested a more flexible time frame, asked for a contractual freeze on gas and electricity prices, and break on the cost of land

MNHD AGM approved the IFA report valuing MINKA and EgyCan at a total shareholder equity value of EGP232.0 million; the EGP374.4 million capital increase through a rights issue and setting up an ESOP

OCDI will have a new board of directors next month, and Aldar has no plans to delist OCDI from the EGX nor change OCDI’s branding

Samih Sawiris is stepping down from his role as Orascom Development Holding chairman and handing the torch to his son, Naguib Sawiris

Danone is looking to invest EGP1 bn over the next fives years

- Market Overview
- EGTS
- ISPH
- MTIE
- FAIT
- MCQE
- RACC
-PRDC

- Prepared by: Mayada Amin - CETA, CFTe

New tax hikes and development fees got the green light from the House Planning and Budgeting Committee

The government made a number of amendments to the VAT, pending Parliament approval

The US Federal Reserve’s Open Market Committee meets today and tomorrow, widely expected to announce it will taper its bond-buying program

EAST inked an agreement to jointly manufacture Davidoff Evolve cigarettes; Will be sold within the mid-price segment, at EGP 32 a pack; Initial production is 100 mn sticks

New entrants into cigarettes manufacturing cannot produce brands within EAST’s lowest tax bracket locally; Reducing toll-manufacturing revenues by 70% in FY25/26 brings down our FV to EGP13.50; EAST is trading at FY21/22 P/E of 5.8x and EV/EBITDA of 3.0x

Companies interested in bidding for a new steel manufacturing license from the Industrial Development Authority will get responses to their inquiries on the terms of the license today; Authority will open the door for bidding in February

HRHO closed  EGP550 mn securitized bond issuance

State-owned Cargas and Gastec inked two contracts worth EGP200 mn to finance the national program to convert cars to run on natural gas over the next three years 

Key Commodity Changes 

Brent futures are trading at USD74.40/bbl, Brent has averaged USD70.78/bbl YTD

Diesel-HSFO spreads were up 15% w/w and are at USD257/ton

Caustic soda prices dropped by 3% w/w so reach USD702/ton, above 3Q21 average of USD410/ton by 77.4%

- Market Overview
- COMI
- EMFD
- CCAP
- ORAS
-ALCN
- OLFI
- AUTO

-Prepared by: Mayada Amin -CETA, CFTe

Egypt is expected to join the JP Morgan bond index for emerging markets by the end of January 2022

Egypt has emerged as one of Turkey’s most important LNG suppliers so far in 4Q2021, shipping seven cargoes since the beginning of October

IRAX BoD announced its approval of the acquisition of 18% of Egyptian Steel for EGP2.5 bn; Transaction will be financed from internal resources, with 50% of the value to be paid upon execution and the rest will be paid in two equal installments over two years; If we apply those multiples on ESRS, then the stock will be worth EGP50-60/share, and IRAX will be worth EGP1,600-1,850/share. Consequently, we do value the transaction from a strategic point of view and see the rationale behind it in terms of market positioning, but we believe that the valuation is very rich

Regulation covering the real estate sector 1) warns against projects launching before obtaining ministerial approval of project/phase masterplan, 2) requires developers to deposit in the bank a monetary amount associated with the phase/project in line with the phase/project’s size, 3) requires developers to submit half-year accounting reports showing collections and expenditure for the phase, 4) requires developers to keep 5.0% of collections for the phase as a reserve in the bank, and 5) governs unit delivery delays

The New Administrative Capital Company started procedures regarding its upcoming IPO, which is expected to take place in around two years

Minister of Electricity said that the government has received several offers from foreign contractors to produce green hydrogen from solar power plants and wind power plants, as well as projects to desalinate water using renewable energy

Twelve local and international companies have purchased the conditions handbook for the development and modernization of power plants in the High Dam and Aswan Reservoir

CBE extended the exemption on enforcement of the loan portfolio concentration limits to the largest 50 clients until the end of December 2022

AMIA is in the final negotiation stages of two acquisition deals in the entertainment and food industries sectors

Mahmoud Lasheen’s ownership in SPMD went down to 15.693% (-7.08%), after an enforced sale due to margin trading

- Market Overview
- AMOC
- AUTO
- ISPH
- SKPC
- CICH
- EGCH
- MICH
- SWDY

- Prepared by: Mayada Amin - CETA, CFTe

MPC Watch| CBE is to keep rates unchanged since inflation rates are still within the target, real interest rates are still attractive, and there is no urge to jump to rate hikes which are costly to the economy

The annual core inflation rate, which excludes volatile and regulated items, rose to 5.8% last November, compared to 5.2% in October 2021

MoF raised USD3 billion loan in green and Sharia-compliant financing

The trade balance deficit declined by 22.5% YoY in September reaching USD2.39 billion; Exports increased by 36.6% YoY, while imports increased by 3.2%

EFID is due to wrap up due diligence on its acquisition of Ole brand-owner, The Egyptian Belgian Company, on 15 December

DSCW has secured FRA approval for increasing the company’s paid-in capital from EGP106 million to EGP371 million through issuing 1.325 billion shares

CI Capital’s bid to acquire 26.2% of CLHO by FRA; Offer subscription period has been set for December 13-22

Patients of IDHC’s AlMokhtabar can now access medical advice from startup Estshara

CBE preparing to launch an initiative to settle the debts owed by 260,000 distressed retail banking clients; Maximum debt cancellation will be for EGP100,000 per customer

- Market Overview
- AMOC
- ESRS
- RMDA
- SWDY


Prepared by: Mayada Amin - CETA, CFTe