The IMF wants Egypt to make more progress on privatizing state-owned companies and moving to a flexible exchange rate before it goes ahead with the first review of the country’s USD3 bn assistance package. 

CBE Governor: Relaxing the supply issues and increased competition will result also in a healthier and faster inflation reduction…Interest rates are not the optimum solution.

The market is expecting announcements of state stake sales after Eid El Fitr, along with a fourth EGP devaluation. 

Twelve-month non-deliverable forwards hit EGP 42.80 to the USD on Thursday, according to Bloomberg.  

Trade between Egypt and Sudan stopped after conflict flared up in Khartoum. El Sisi reiterated Egypt’s principle of “non-interference” in the affairs of other countries.

Egypt released USD15 bn worth of goods from ports during 1Q 2023 despite the ongoing foreign currency shortage. 

El Sisi has issued a presidential decree to set up the Supreme Investment Council, which is part of the state’s efforts to boost investment and stimulate economic growth.  

The departments of the Financial Supervisory Authority and the Egyptian Stock Exchange are currently discussing a procedural amendment regarding the closing price auction session in the stock exchange.

Local media reported that Cabinet intends to choose one of the shortlisted offers for a stake in the state-owned United Bank immediately after Eid. Some news wires reported the offer will be for USD660 mn (EGP21.0 bn at an exchange rate of EGP30.89/USD). The United Bank achieved a net profit of EGP1.3 bn in 2022, therefore, the transaction implies P/E22 of 16.2x, lower than the recent banking transaction multiples of ABC Bank acquiring BLOM Bank Egypt of P/E21 at 19.7x, and P/B22 of 2.1x which is higher than BLOM Bank transaction multiples P/B21 of 1.3x. If we assume a 20% growth in 2023, then transaction multiples imply 13x 2023 P/E and 1.9x P/B, which confirms our view that banks traded on EGX are extremely cheap. Please check our pitch on banks from last Monday. 

EXPA should be expecting around EGP700 mn in proceeds from selling a building located in New Cairo.

CIRA released their 1H22/23 results showing a YoY decline in attributable net profit by 22.3% to record EGP220 mn compared to EGP283 mn in 1H21/22. CIRA is currently trading at a FY22/23 P/E multiple of 13.7x and an EV/EBITDA of 6.3x. 

Sudan is considered one of the largest markets importing building materials from Egypt, but the current period of vacations for Egyptian companies makes it difficult to know the impact of recent political events taking place in Sudan on exports. Libya could be the alternative destination for Egypt's building materials exports. Sudan ranked ninth among the largest importers of building materials from Egypt in 2022, with about USD138 million (+18% YoY).

EGTS Board approved a notification from the Tourism Development Authority requiring EGTS to pay USD21.9 million (translating into EGP0.64/share) to extend the development timeline for undeveloped land. 

TMGH launched East Hub, its latest commercial offering in Madinaty, for rent to companies and brands.

Eni will start the exploration of a new natural gas well in the Mediterranean's deep water with USD 130 million of investments.

Egyptian Chemical Industries (Kima) Plans to build a new project for green ammonia production using the high dam electricity.

Self-employed professionals including lawyers, pharmacists, and doctors who directly serve end-customers are no longer obligated to register with the Egyptian Tax Authority's e-invoicing system.