Standard and Poor’s (S&P) has affirmed Egypt’s long and short-term foreign and local currency sovereign credit ratings at B/B, supported by significant external support.

Fitch affirmed Egypt rating at 'B+'; Outlook Stable, backed by the "recent record of fiscal and economic reforms, the large economy with robust growth, and strong support from bilateral and multilateral partners".

The IMF sees Egypt’s budget deficit to record 6.8% by the end of the current fiscal year, and 6.1% in FY2022/23, up from 6.3% and 5.5% respectively.

Minister of Electricity said that electricity prices in Egypt are still subsidized by the until 2025.

FWRY  4Q21 attributable net profit is EGP27.8 million (-58.6% YoY, -22.8% QoQ), FY21 attributable net profit of EGP177.2 million (-4.9% YoY); FWRY is currently trading at 2022f P/E of 61.6x and EV/EBITDA of 22.4x.

The Ministry of Finance decided not to accept paper invoices for deducting or refunding the value-added tax, effective next July, after which only e-invoices will be required (EFIH).

UAE-based fintech platform FlexxPay is expanding to Egypt; which provides an instant pay platform, instead of the traditional pay cycle. The app allows employees to manage their salaries with budgeting and savings tools.

IDHC reported strong 2021 attributable net profit at EGP1.49 billion in 2021 (+151% YoY; 4Q21 attributable net profit came in at EGP345 million in 4Q21 (+47.2% YoY, -24.1% QoQ), Proposed DPS EGP2.17/share (DY of 11.3%); IDHC is currently trading at 2022f P/E of 12.3x and EV/EBITDA of 6.3x.

OCDI achieved strong 1Q22 sales of EGP3.7 billion, up 102.2% y/y and down 37.4% q/q from 4Q that is generally a strong quarter in real estate, reaching a record 1Q high in OCDI’s history. Net profit in 1Q22 reached EGP226.0 million, up 126.0% y/y and down 56.4% q/q. OCDI is on track to reach our FY22 sales forecast of EGP11.5 billion. 

OLFI released positive 1Q22 net profit of EGP90.6 mn, +29.8% YoY, -5.1% QoQ. This drop could be mainly attributed to the increase in FX losses to reach EGP19.9 mn for the quarter, preventing the trickling down of a healthy top-line. OLFI is currently trading at a FY22 P/E of 7.1x and and EV/EBITDA of 4.7x.

Abu Auf is pushing its planned EGX debut to the second half of 2022.

ABUK reduced DPS to EGP1/share, with a record date of 09/05/2022 and a distribution date of 12/05/2022. ABUK will export 45% of production. 

CFC Fertilizers and Evergrow are finalizing agreements with the Egyptian government to establish a new factory for feed and fertilizers, with a total investment of about EGP10 billion, to produce 300,000 tons of mono-calcium phosphate, and potassium sulfate.

Al Wahda Industrial Development Company, a subsidiary of El Garhy Iron and Steel Group, has decided to acquire the National Glass and Crystal Company, a subsidiary of ADIB for EGP30 mn.

The Ministry of Public Entreprises is looking forward to offering the shares of Misr Insurance Company on the EGX, following the expected offering of 25% of the shares of Misr Life Insurance Company at the end of 2022.

Commodities:

Oil slumped 9% on Monday, its lowest in two weeks, on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates. Brent futures are trading at USD102.32/bbl and averaged USD99.63/bbl YTD.

Indonesia announced a ban on palm oil exports. The country is considered one of the major exporters for the oil as it accounts for more than half of the world’s palm oil, which is used in everything from chocolate to cosmetics. Egypt is one of the largest importers for palm oil, as Indonesia suppli