The International Finance Corporation (IFC) will come on board as an advisor to the Egyptian government on the state’s privatization program.

SCZone Chairman is in New Delhi to kick off a promotional roadshow looking to attract Indian investments to the economic and industrial areas in Ain Sokhna and Port Said.

The Suez Canal Authority intends to establish a new holding company, which includes 7 affiliated entities, with the aim of accelerating the process of offering stakes in those entities on the EGX.

Sovereign Fund of Egypt (SFE) has received a preliminary valuation of ESRS subsidiary IRAX that puts the company’s worth at some EGP1,060/share. We remind you that our FV for ESRS is EGP54.6/ share and EGP1,357.5/share for IRAX. Thus, we see the deal, if executed, to be value accretive for ESRS. ESRS should make a mandatory tender offer for IRAX's remaining outstanding shares, which raises the question of how the deal will be funded. 

Abu Dhabi Ports (ADP) and its subsidiary Transcargo International (TCI) are planning to launch a tender for the construction of nine silos for storing cement and dry bulk cargo at a cost of some EGP1 billion. 

The companies under our coverage in the Food and Beverages sector all witnessed an outstanding quarter when it comes to enhanced profitability and margins: Rising top-line levels backed by prices rather than volumes. Lagging cost rises due to stocking-up of low-priced inventory. Rise in GPMS backed by the price increases and lagging costs. Higher EBITDA margins backed by cost cutting initiatives. Higher net interest expense levels due to higher working capital financing needs and higher effective interest rates. FX losses rising. EFID is our top pick (FV: EGP22.80, OW). 

EFID decided to raise their FY23 capex plan to EGP800 mn from a previous EGP400 mn, and raise the newly acquired Fancy Foods paid in capital by EGP400 mn.

We updated our valuation for EKHO to USD1.86/share (EGP57.00/share) with an overweight recommendation. The company distributes USD-denominated dividends, even for the EGP-traded stock, which are expected to reach 7 cents in 2023, with a dividend yield of 6.9%. EKHO’s share is currently trading at 2023e PE of 6.4x and EV/EBITDA of 3.6x.

Trading of TAQA shares was postponed until after eid Al Adha holiday. 

MICH's EGM approved increasing the company’s authorized capital form EGP400 million to EGP1 billion. 

The Real Estate Development Chamber intends to hold a meeting with the Central Bank during the next few days to review mechanisms for real estate financing.

ZMID AGM approved the distribution of EGP0.15/share cash dividends (DY of 2.5%) to be distributed over two installments: EGP0.05/share and EGP0.10/share.

Weekly Commodities | Last Price           WoW Change, %

Brent, USD/bbl  76.6      2.4%

Diesel-HSFO Spread, USD/ton     310.0    13.9%

Egypt Urea, USD/ton      300.0    -6.3%

Polyethylene, USD/ton  990.0    -3.9%

Polypropylene, USD/ton              910.0    -1.6%

Steel/Iron Ore Spreads, USD/ton             414.4    -1.0%

Aluminum, USD/ton       2,230.7 0.1%

Copper, USD/ton            8,555.0 2.5%

Egyptian Retail Cement, EGP/ton             1,735.0 -1.1%

Steam Coal, USD/ton      128.5    -5.3%