Al Ahly Pharos

Market Overview 


- prepared by: Mayada Amin- CETA, CFTe 

Egypt is in talks with the International Monetary Fund to extend timelines for key reforms under its economic reform program, a senior government official said. The official expects Egypt to be placed on the IMF Executive Board’s agenda before the Christmas holidays for the amendments to be given the final greenlight.

The average yield on three-month EGP-denominated t-bills rose to 31.419% in Sunday’s auction by the Central Bank of Egypt, up 0.219 percentage points since the same bills last went to auction. 

Net foreign reserves remained flat at USD47.0 billion at the end of November 2024.

Chinese luggage manufacturer Hangzhou Henneway Travel Goods kicked off construction on its USD50 million factory in the Suez Canal Economic Zone’s (SCZone) Qantara West Industrial Zone.

CBE data revealed that Egypt paid USD1.3 billion in repo agreements (repurchase international bonds) worth USD1.3 billion last month.

The trade deficit recorded USD31.275 billion during the first 10 months of 2024, an increase of 1% compared to a deficit of USD31.025 billion in the same period last year.

United Bank’s shares will debut on the EGX tomorrow under the ticker UBEE, following the close of its heavily oversubscribed retail and private offerings that put the company’s share price at EGP13.85.

ESRS Board of Directors agreed to begin procedures for delisting its shares from the EGX, pending the general assembly’s approval. 

Saudi cable manufacturer Al Mousa Cables is set to establish its first EUR50 million cable production factory in Egypt, according to local media. 

We updated our FV for EAST to EGP48.11/share, maintaining our Overweight recommendation. EAST is currently trading at FY24/25 P/E of 6.3x and EV/EBITDA of 5.5x.

CLHO reported positive 3Q24 results with 3Q24 attributable net profit amounted to EGP207 million, up 45% QoQ and 73% YoY, yielding a NPM of 14.2%. On a YTD basis, 9M24 attributable net profit came in at EGP532 million (+71% YoY) yielding a NPM of 13.9% (+1.61pps YoY). CLHO is currently trading at FY25 multiples of P/E 14.2x and EV/EBITDA of 7.0x.

According to AMIC, auto sales increased by 7.3% YoY and 1.1% MoM in October to record 9.6kvehicles up from 9.0k vehicles during October 2023 and 9.5k vehicles in September 2024. 

Weekly Commodities Update
 |   | Last Price | WoW Change, %
| Brent, USD/bbl | 71.1 | -2.5%
| Diesel-HSFO Spread, USD/ton | 229.3 | -3.8%
| Egypt Urea, USD/ton | 364.0 | 2.8%
| Polyethylene, USD/ton | 950.0 | 0.0%
| Polypropylene, USD/ton | 960.0 | 0.0%
| Iron Ore 65%, USD/ton | 123.6 | -0.2%
| Steel/Iron Ore Spreads, USD/ton | 377.1 | -1.0%
| LME Aluminum Cash Price, USD/ton | 2,569.8 | -0.3%
| LME Copper Cash Price, USD/ton | 9,011.9 | 1.4%
| Egyptian Retail Cement, EGP/ton | 2,847.0 | 0.0%
| Steam Coal FOB Newcastle Australia, USD/ton | 133.3 | -5.8%
| SMP, USD/MT | 2,848.0 | -1.2%

- Market Overview 
- BINV
- GBCO
- FWRY 
- CLHO
- PHDC



prepared by: Mayada Amin- CETA, CFTe

Wataneya and Safi are named as among the up-to-four military companies to be offered up on the EGX, unnamed sources said. The National Service Products Organization-owned filling station operator and bottled water company are reportedly currently being reevaluated ahead of a listing scheduled for 1Q25. 

The EGP fell to its lowest level on Thursday since March’s exchange rate liberalization, passing the EGP50.00 mark against the greenback.

Egypt is to lease a second LNG floating regasification unit starting 2H25, following an agreement to lease a unit between US-based New Fortress Energy and Egyptian Natural Gas Holding Company (EGAS).

The CBE sold only 6.2% of its target for year-long USD-denominated bills and 18.0% of its six-month bills as investors demanded higher interest rates during the bank’s most recent auction on Thursday. 

US energy giant Exxon Mobil will start drilling a new offshore gas exploration well in the North Marakia concession in the western Mediterranean on 15 December, according to a statement from the Oil Ministry.

The CBE gave the green light to a number of banks to start accepting Egypt-bound remittances from abroad through the Central Bank’s payment platform Instapay, the bank said in a statement.

The World Bank said that it had reached an agreement with the Egyptian government to extend the program to support the comprehensive health insurance system until September 2026, instead of October 2024. 

President Abdel Fattah El Sisi and Danish King Frederick X launched the Egypt-Denmark Business Council, which will serve as a “gateway for Danish economic and commercial bodies to explore investment opportunities in Egypt,” namely in the infrastructure, ICT, renewable energy, and transformative industries sectors.

Egypt Post acquired EGP8.9 billion in shares owned by the National Investment Bank in seven EGX-listed companies, Asharq Business reports citing an informed government source. The shares were purchased from EAST, ABUK, ALCN, MFPC, EKHO, AMOC, and SKPC.

The Finance Ministry will launch public consultations on its tax policy document in the first quarter of the next fiscal year, according to a statement by the Ministry. 

The General Authority for Supply Commodities (GASC) has been reportedly replaced by the Mostakbal Misr Agency for Sustainable Development of the Egyptian Armed Forces. Mostakbal Misr will “assume all jurisdictions previously held by GASC,” according to a letter from the Supply Ministry to Russia’s Minister of Agriculture seen by Reuters.

ETEL, alongside other mobile network operators, announced increasing the price of home internet packages and mobile packages by around 31-32%.

ABUK has decided to replace part of the natural gas used in its ammonia production facility with 50 tons a day of green hydrogen, according to an EGX disclosure. The 12-month project is also expected to up production 100 tons to 1.2k tons a day. 

SUGR cash dividends of EGP5.00/share will be paid out in two equal installments, with the first to be paid on 26 December 2024 and the second on 22 January 2025. The record date is on 23 December 2024.

DOMT has submitted documents to reduce the company's authorized capital to EGP282.6 million down from EGP500 million.

BTFH is planning an issuance of securitization bonds with a value of EGP3 billion in 2025.

- Market Overview 
- ALCN
- AMOC
- BTFH
- CIEB 
- CLHO


- prepared by: Mayada Amin- CETA, CFTe

Prime Minister said that there is a plan to offer three to four companies affiliated with the military on the EGX. We should know more next week with the release of the government’s privatization plan for the coming period.

Prime Minister said that foreign companies, both new to the market and veterans, are getting ready to launch projects, including in the automotive and renewable energy industries.

Scatec’s Obelisk Solar was granted a golden license for a USD600 million solar project over a 16.3 sq km area in Nagaa Hammadi. 

Scooter manufacturer Piaggio is mulling reopening its factory in Egypt.

Home appliances manufacturer Ariston is thinking about expanding its presence in the Egyptian market. 

Railway company HitachiRail, which recently acquired Thales’ ground transportation unit, is looking to expand its footprint in Egypt.

Luxury yacht manufacturer Navigo highlighted its interest in investing in Egypt’s yacht industry.

Industrial vehicles manufacturer Iveco is conducting a feasibility study to launch a new factory in Egypt for truck manufacturing.

Railway and urban mobility company Salcef Group discussed establishing a new company in collaboration with Egyptian Railways for Track Renewal and Maintenance Company.

The Prime Minister stated that there are five global alliances competing to plan the area surrounding the Pyramids, the Grand Egyptian Museum, and the Sphinx Airport.

Italian state-owned Italian State Railways discussed submitting an offer to manage and operate Egypt’s high-speed electric rail network.

China’s New Hope Group is exploring a USD100 million investment to establish a feed production complex in an industrial zone.

FutureFert is set to launch the first phase of its USD40 million fertilizer plant after receiving a golden license for the project. 

Yemen’s Al Kbous Tea plans to invest around USD30 million in Egypt over the next two years to boost production capacity and upgrade machinery.

The New Urban Communities Authority is mulling a EGP150 billion sukuk program in 2025, which would help fund the development of land plots in new cities.

United Bank’s shares are expected to debut on the EGX next week, with sources telling media that shares could start trading on Tuesday. 

HRHO announced the completion of its advisory services for the IPO of United International Holing (UICH) in Tadawul Saudi Arabia with a market cap of USD264 million. 

ATLC general assembly approved the distribution of cash dividends of EGP0.599/share forFY23, implying a dividend yield of 13.1%.

EFIH’s cash dividends of EGP0.197/share record date is on 24 December 2024 and distribution date is on 29 December 2024.

MBSC reported solid financial performance in 3Q24. Net profit came in at EGP165.4 million (+7.3% YoY, -8.1% QoQ). 9M24 net profit recorded EGP387.0 million, up from EGP243.7 million in 9M23. MBSC is trading at FY25 P/E of 10.3x and EV/EBITDA of 7.7x.

ARCC is to distribute cash dividends of EGP1.585/share for FY23, implying a payout ratio of 87% and a dividend yield of 11%.

CCAP’s waste management company Ecaru will close and rehabilitate the Qalabshu landfill in Dakahlia as part of the Kitchener Drain Project, under a EUR10 million agreement inked with the Local Development Ministr

- Market Overview 
- ADIB
- FAIT
- FWRY 
- ORWE
- SAUD



- prepared by: Mayada Amin - CETA, CFTe

*Key news articles for today*

The government is planning on offering up stakes in its majority-owned Port Said Container and Cargo Handling Company (PSCCHC) and Damietta Container and Cargo Handling Company (DCHC) on the EGX during 1Q25. The sources expect the government to offer 20-25% stakes in each company, with the IPO’s private placement focused on attracting major companies like the UAE’s AD Ports and DP World.

Kuwait renewed a USD2 bn Central Bank of Egypt deposit certificate due for repayment in April for another year.

Egypt's non-oil exports rose to USD33.35 billion during 10M24, an increase of 12.2% compared to the same period last year.

MPs approved 22 of the 44 articles in the draft cash-based subsidies bill to establish a Takaful and Karama fund to provide cash-based payments to those under the poverty line, funded by the state budget, private contributions, foreign grants and loans, and investments.

The African Development Bank (AfDB) has approved a USD170 mn loan to fund local energy and infrastructure leader Hassan Allam Utilities and Saudi renewables giant ACWA Power’s 1.1 GW wind farm in the Gulf of Suez, set to be the largest of its kind in the Middle East, according to a statement from AfDB. The loan would fund 16.0% of the entire USD1.1 bn project.

The Prime Minister issued a decree setting the selling price of natural gas supplied for electricity generation at USD4 per million British thermal units, to electricity production companies affiliated with the Ministry of Electricity or other companies. The Prime Minister also issued a decree to pay the value of natural gas consumption in USD for free zone and economic zone projects.

The House gave its final nod to five energy exploration bills authorizing the Oil Ministry to contract with local and international companies to explore for oil and gas across Egypt in the Mediterranean, in the Nile Delta, and in the Western Desert.

Transport and Industry Minister Kamel El Wazir called on Mermec to establish a factory to localize the production of signalling and control systems for railways.

Egyptian National Railways finalized an agreement with Spain’s high-speed train manufacturer Talgo to supply seven new luxury sleeper trains, following the recent delivery of six similar models. A EUR200 mn loan to import sleep trains from the company was given the presidential thumbs up in August after being passed by the House in June.

State-owned Holding Company for Roads and Bridges is looking to secure USD500 milliin worth of railway projects with the Iraqi government as a part of Iraq’s plan to spend USD100 billion on infrastructure over three years. 

MASR (FV: EGP8.11, OW) 1) aims to build two hotels in Taj City in 2025, 2) aims to invest EGP20.0 billion in construction work in 2025, 3) signed a contract with Majid Al Futtaim to open a Carrefour branch in Taj City, and 4) expects to start collecting rental income in 2027.

Banking

United Bank has concluded its retail and private offerings, with its retail offering that closed yesterday being oversubscribed 59x.

CICH announces the completion of the issuance of securitization bonds for Al-Tawfeek Lease and Tamweel Mortgage Finance amounting to EGP1.5 and EGP1.8 billion; respectively. 

FWRY (FV: EGP13.00, OW) announced that its fully owned subsidiary, Fawry MSME, BNPL’s portfolio onboarded over 50,000 merchants to its service, facilitating 750k transactions with a total value of EGP2 bn. 

- Market Overview 
- COMI
- EAST
- EFIH
- ATLC
- DSCW


- Prepared by: Mayada Amin- CETA, CFTe

The recently formed Entrepreneurship Ministerial Committee has announced ambitious plans to increase investments in Egypt’s startups tenfold to USD5 bn in the coming period, through easing market entry among other measures.

Industry Ministry revealed new information about the government’s plans to localize automotive feeder industries with a USD 360 mn joint tire-manufacturing project between the Arab Organization for Industrialization (AOI) and an unnamed Chinese company, set to be an entire tire manufacturing city in a freezone in Ain Sokhna.

Government arrears owed to Egypt’s pharma companies have climbed to EGP 50 bn, Federation of Egyptian Chambers of Commerce’s pharma division said.

Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Electricity Minister Mahmoud Esmat said.

MPs yesterday gave the greenlight to a EUR 1 bn macro-financial assistance package from the EU, which marks the first phase of a EUR5 bn set of concessional loans running through 2027 as part of a wider EUR7.4 bn package from the EU announced in March.

Egypt's PMI edged up for the second month in November, moving closer to the 50.0 mark that separates growth from contraction, recording 49.2 from 49.0 in October, the index was indicative of a marginal decline in business conditions.

The Ministry of Industry, in cooperation with the CBE, intends to launch a fund to support the productive sectors, especially the industrial sector.

The Prime Minister said that the government is working to expedite the payment of the remaining dues to the British company “BP”.

CNG Egypt New Energy Glass Company, a subsidiary of China Glass Holding Group, intends to pump investments worth USD300 million into the TEDA region - Egypt, in the industrial zone of Ain Sokhna.

The CBE sold USD 980.5 mn worth of one-year, USD-denominated t-bills yesterday, with an average yield of 4.50%, down 0.65 percentage points from the last time the same length bills were auctioned off in June

Today is the last day for retail investors to grab a piece of United Bank, with the retail offering set to wrap today, before trading kicks off on the EGX. The offering is already 23x oversubscribed as of yesterday, as retail investors jump one of only two IPOs to kick off this year, Amwal Al Ghad reports. 

The government has approved a four-year plan starting next year to expand the production capacity of state-owned EGAL’s Nagaa Hammadi complex, with an eye toward fulfilling local demand and reducing imports of aluminum. 

Ministry of Industry is studying reducing the value of steel billets new license to EGP3 million in order to facilitate acquiring the license.