Blending History with Current Times| In light of what is happening today, which stocks have high potential to outperform, and did actually outperform in 2016? COMI, HRHO, ADIB, CIEB, ORHD, HELI, MNHD, ORWE, SWDY, EKHO, ECAP, EAST, EFID

Some 19 strategic industries involved in national projects will pay zero real estate taxes for the next three years. 

The Central Bank of Egypt and Trade and Industry Ministry could allow importers who are not able to retrieve a Form 4 customs document to pay six-month open letters of guarantee in exchange for the immediate release of their shipments. (Bloomberg Asharq)

Bloomberg: Protracted negotiations with the IMF over a new loan and risk of further devaluation are putting more pressure on the local debt market. Sales of EGP-denominated bonds are down YTD and local debt is among the six worst performers globally this quarter.

Bloomberg: “Another 20% devaluation combined with a further 300-to-400-bps hikes and clarity on the policy outlook would get me interested in the local trade again,” said a London-based analyst to Bloomberg. 

State grain buyer GASC has secured 120k tons of Russian wheat directly from suppliers for delivery in November at USD 340 per ton.

The government is preparing to re-launch the government IPO program again through selling stake on the local stock exchange.

Russia cuts off gas exports to Europe via Nord Stream indefinitely. Gas prices went down.

EAST declared yesterday a price increase for 8 of its local products by EGP1.50-2.00/pack. 50% of these increases are directed towards EAST for covering rising costs while the remaining 50% is effectively passing on to the consumer the VAT. This rise in prices adds c.EGP2.5-3.0 bn to FY22/23 top-line on an annual basis, and c.EGP500-600 mn for the year FY22/23 assuming NPM at FY20/21 levels of c.20% (assuming higher costs). EAST is currently trading at a FY22/23 P/E of 4.8x and an EV/EBITDA of 2.9x.

NUCA to open this week the financial offers submitted by contractors to establish two towers in New Alamein City with investments EGP6.5 billion (ORAS).

Egypt and Greece are working on a plan to add 9.5 GW of renewable power generation capacity in Egypt for export to Greece.

The Electricity Ministry plans to tender six solar projects in Aswan Governorate to local and international private sector firms in 4Q22.