*Key news articles for today*

United States Inflation fell to 4.0% y-o-y in May — its lowest level in 27 months and down from 4.9% the month prior. Thus, the Fed is widely expected to leave rates unchanged. 

Egypt and Iraq signed 11 MoUs yesterday during Iraqi Prime Minister's visit to Cairo. El Sisi discussed boosting ties on economic cooperation, trade, investment, and the upgrading of infrastructure. 

The Minister of International Cooperation signed a development financing agreement worth USD 460 million with the State of South Korea for the second and third lines of the Greater Cairo Metro. 

The Urban Development Fund has received offers from local and foreign investors to participate in developing the capitals of the major governorates at an estimated cost of EGP600 billion. 

The Finance Ministry has invited local and international banks to pitch for an advisory role on the sale of its 20% stake in Bank of Alexandria (Alexbank). Intesa Sanpaolo purchased 80% of its shares for USD 1.6 bn in 2006. AlexBank achieved a net profit of EGP1.2 billion in 1Q23, with estimated profits of EGP4 billion in 2023. Book value stood at EGP15.5 billion in Mar-23. 

The House of Representatives yesterday approved a government-proposed bill that will revoke the establishment laws of the Arab Investment Bank (aiBank), the Export Development Bank (EBank), and the Agricultural Bank of Egypt. The newly-approved bill aims to align these lenders with the current banking regulations, ensuring parity among all banks operating in the country. EXPA’s establishment law makes no distinction between ownership and management rights and places limitations on who can own shares in the bank, which should change with the new laws. EXPA will now be open to foreign ownership. Stock is amongst the cheapest in Egypt with 2023 P/E of 3.4x and P/B of 0.6x.   

JAF Investment has obtained the approval of FRA to proceed with the transfer of shares in two subsidiaries of Arabia Investments Holding (AIH), the 30% stakes in UE Finance for EGP 147 mn and Rawaj Consumer Finance for EGP 30 mn. 

Some of the steel manufacturers in Egypt were forced to shut down their factories and trim or stop production due to the lack of foreign currency needed to import raw materials. We remind you that ESRS exports have been on the rise since 4Q22 to secure the foreign currency needed for importing raw materials, which should remain to be the case supported by the commercial launch of EFS’s new furnace. 

MBSC submitted documents to decrease its paid-in capital to EGP679.3 million distributed over 67.9 million shares, down from EGP750 million distributed over 75 million shar es through cancelling 7.07 million treasury shares.

MOPCO might witness another acquisition amid a strong market appetite from Gulf investors to increase their shares in the company. Sources clarified that the board members of MFPC are buying heavily in the stock.  

TAQA will start trading on EGX within two weeks.  

MICH reached an initial agreement with two private sector companies to form a new company with an authorized capital of EGP1 billion and issued capital of EGP600 million for producing chlorine granules (TCCA). MICH will hold a 12% stake.  

The value of pharmaceutical raw materials that are stuck at Egyptian ports is around USD150 mn and could be cleared by the end of June, according to local press. 

PHAR denied receiving Saudi offers to acquire a stake in the company, in response to news of an expected Saudi acquisition of 75% of the company's shares. 

The Ministry of Communications is negotiating with a number of international companies specialized in manufacturing mobile phones to participate in localizing the electronics industry.