Net International Reserves registered at USD35.495 billion end of May, down from USD 37.123 billion in April, due to external debt repayments of USD2 billion.

Madbouly asked the Finance Ministry to prepare a timeline for stake sales in state-owned firms, and the Planning Ministry to produce a list of assets from which the government will fully exit, or offer stakes.

The government will likely look to line up strategic investors in private sales rather than turning to public offerings on the bourse.

Cabinet will announce a new sub-fund owned by the Sovereign Fund of Egypt (SFE) that will be responsible for managing the sale of state-owned companies. The fund is set to initially include assets worth USD 3-4 bn.

 A Saudi delegation including representatives from the Public Investment Fund (PIF) will soon visit Egypt to sign an MoU with the SFE for the USD 10 bn investment pledged in March.

Valu is going to enter Saudi Arabia by acquiring a stake in new Saudi consumer finance player Fas Finance, where it will purchase a 35% stake for EGP 95.75 mn. 

BTFH has given the go-ahead to a consortium of investors to conduct due diligence, pending approval from the FRA.

Alex Bank launched an electronic platform for foreign exchange trading for companies in Egypt, in cooperation with “Refinitiv.”

EGTS 1Q22 net loss of EGP47.0 million compared to 1Q21 net loss of EGP6.6 million. Net loss widened due to a EGP122.0 million impairment of receivables in 1Q22. 

Another court ruled in favor of Trans Mediterranean for Tourism Investments, requiring EGTS to pay USD5.7 million (translating into EGP0.10/share).

Ministry of public enterprises is discussing with two local entities to manufacture an Egyptian electric vehicle battery and with an Indian and Korean company to manufacture 50 thousand electric Tuktuk.

AUTO’s BoD will be canceling their treasury shares of 8.5 mn shares.

RACC BoD approved the establishment of a new company in Dubai under the name of Raya Gulf Customer Experience. 

Weekly Commodities Update

Brent, USD/bbl  119.3     -1.8%

Diesel-HSFO Spread, USD/ton    691.0     12.5%

Egypt Urea, USD/ton      720.0     0.0%

Polyethylene, USD/ton  1,450.0  0.0%

Polypropylene, USD/ton               1,195.0  0.0%

Steel/Iron Ore Spreads, USD/ton              455.7     -5.0%

LME Aluminum Cash Price, USD/ton        2,698.0  -5.6%

Egyptian Retail Cement, EGP/ton              1,180.0  0.0%

Steam Coal, USD/ton      412.5     2.9%

Crude Palm Oil, USD/MT               1,495.1                  1.7%

SMP, USD/MT   4,116.0  -0.3%