The IMF has welcomed the government’s progress in selling down state assets in the privatization program, which will support the gradual withdrawal of the state from economic activity and provide resources for external debt reduction.

The Sovereign Fund of Egypt received 3 offers from strategic investors to acquire Wataneya from Abu Dhabi National Oil Company (ADNOC) and the ENOC Oil Group, Saudi Petromin, and Taqa Arabia (CCAP).

Real estate tax proceeds increased in FY22/23 by 34% to reach EGP6.4 billion pounds, and it is targeted to reach EGP7.7 billion in FY23/24.

Egypt intends to launch a new stimulus package for tourism investment, as part of its target to reach 30 million tourists by 2028.

The government plans to ask the House of Representatives to remove the cap on how many properties foreigners can own.

The government has received an offer from Denmark's Maersk for the acquisition of the state-owned 545-MW Zafarana wind farm.

The Oil Ministry will this week award seven gold exploration licenses to Centamin and Canadian firm Barrick Gold, with 50% of net income stake.

The government is in talks with the European Investment Bank (EIB) over a potential USD 300 mn loan to finance the construction of the Robeiky-Tenth of Ramadan-Belbeis railway line.

Norway’s Scatec and Alexandria National Refining & Petrochemicals Company (ANRPC) inked a USD 450 mn agreement in May to establish a green methanol plant in Damietta.

The Indian company, Tata Motors, has postponed its entry into the local market due to the foreign currency shortage and its inability to import its models.

ISPH (FV: EGP2.4, OW) held the leadership position in pharma distributors with a 23.7% market share in 5M 2023. During that period, the pharma market grew 19.4% YoY to EGP73.1 bn.

Philip Morris has reversed a price hike on its cigarette brands — L&M and Marlboro — following news of an upcoming tax hike on cigarettes. The tax hikes could range from EGP 0.50 on cheaper cigarettes to more than EGP 2.00 on more expensive, imported smokes. 

MNHD (FV: EGP3.16, EW) concluded its acquisition of Minka and EgyCan for EGP200.0 million, which generated sales of EGP544.0 million in 1Q23.

ACAMD signed the co-development agreement with the Vantage consortium to co-develop the 60k sqm Zefta land plot, with ACAMD entitled to a 36% revenue share as the land owner.

RTVC signed a co-development agreement (RTVC entitled to a 60% share of revenue and cost) on a 29.4 feddan land plot on the North Coast. Expected sales are EGP1.5 billion, and expected cost is EGP1.0 billion.

CCAP is planning to take its subsidiary National Printing public on the EGX by 2Q24. The company reported a 54% increase in revenues to EGP 1.4 bn in 1Q 2023. 

FAIT released unaudited standalone 2Q23 financial indicators where the bottom-line recorded EGP2,701 mn (+54.7% y/y). The stock is currently trading at 3.5x P/E23 and 0.6x P/B23.

Weekly Commodities |       Last Price     WoW Change, %

Brent, USD/bbl        79.9    1.8%

Diesel-HSFO Spread, USD/ton    303.5  3.0%

Egypt Urea, USD/ton         377.5  2.7%

Polyethylene, USD/ton       990.0  1.0%

Polypropylene, USD/ton     885.0  0.0%

Steel/Iron Ore Spreads, USD/ton 380.1  -5.0%

LME Aluminum Cash Price, USD/ton      2,232.4           6.3%

Egyptian Retail Cement, EGP/ton 1,710.0         -2.6%

Steam Coal FOB Newcastle Australia, USD/ton           131.7  -4.6%

SMP, USD/MT         2,525.0         -5.3%