COMI (FV: EGP 68.54, OW)  2Q23 net profit post minority recorded a robust EGP7.99 billion (+32% q/q, +127% y/y), bringing 1H23 profit for equity holders to EGP 14.1 bn (+81% y/y). Robust sequential performance came on the back of 1) strong margins, 2) lower OPEX, 3) lower booked provisions, and 4) lower effective tax rate. The stock is trading at P/E 2023 of 6.1x and P/B 2023 of 1.9x.

The Federal Reserve will hold its two-day policy meeting on Tuesday and Wednesday this week. An unexpectedly large slowdown in inflation in June led consensus to expect a hold on rates. 

The Egyptian economy grew at a 4.2% clip in FY22/23, down from 6.6% the year before.  

The government is currently in talks for some USD 400 mn in financing from the Abu Dhabi Fund for Development to help finance Egypt’s wheat imports. 

The cabinet gave its preliminary approval to grant five new golden licenses with an investment value of more than EGP 10.2 bn.  

The Commodity Exchange is discussing with the Ministry of Supply offering sugar for trading through it in an attempt to control the unexplained spike in local prices. 

Power outage in Egypt is caused by insufficient gas and diesel supplied to the Ministry of Electricity. 

Oil prices rose 1.2% WoW to settle at USD81.07/bbl, buoyed by growing evidence of supply shortages in the coming months and rising tensions between Russia and Ukraine.

Rebars retail price dropped by around EGP3k/ton compared to last month due to slowing raw materials prices and low local purchasing power, according to local media.

Local pharma manufacturer “Gennecs” plans to invest USD150 mn in its Gennvax factory that will produce medicines, serums, and vaccines. 

Electrolux will sell its factories and brands in Egypt as part of its global reprioritization plans.

The local arm of Chinese home appliances giant Midea Electric will establish a USD105 mn factory to manufacture home appliances.

Basata Pay (MTIE/BINV) plans to expand its network of branches to 30 by July 2024, up from 3 currently.

PHDC (FV: EGP3.99, OW) closed a EGP472.5 million securitization.

ARAB (FV: EGP0.65, EW) declared 1:10 stock dividends. Record date is 8 August. Distribution date is 9 August.