The Federal Reserve hiked interest rates by 25 bps yesterday stating that the committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge. 

The Electricity Ministry expects the ongoing rolling blackouts to continue until the middle of August as pressure on the country’s power generation infrastructure continues amid the summer heat. 

A number of banks are studying the possibility of issuing high-yield dollar certificates, after NBE and Banque Misr did. 

President Abdel Fattah El Sisi landed in St. Petersburg yesterday, where he met with President Putin to discuss ongoing projects and the impact of the ongoing war in Ukraine on African countries ahead of the Russia-Africa Summit, which kicks off today.  

OLFI released 2Q23 results showing net profit of EGP97 mn (+7.5% YoY, -15.8% QoQ) with a weak margin of 6.5% compared to 10.3% in 2Q22 and 7.8% in 1Q23. The squeeze in margins came backed by weaker gross profitability due to rising costs and an increase in interest expenses. Revenues climbed by 70.1% YoY and 1.1% QoQ to reach EGP1,486 mn driven mainly by the aggressive prices increase. OLFI is trading at a FY23 P/E of 8.1x and an EV/EBITDA of 4.3x.

Head of tobacco industries has requested granting EAST LCs to import the needed raw materials as their current inventory is sufficient for only one month worth of production.

SPMD reported 4Q22 consolidated financial results with net loss of EGP63.5 million in 4Q22 compared to a net loss of EGP30.7 million in 4Q21. The negative bottom line is mainly attributed to the decline in revenues, recording expected credit loss of EGP13 million and impairment of inventory of EGP9.5 million.  On annual basis, bottom line recorded a net loss of EGP146.2 million in FY22 (-207% YoY), compared to a net profit of EGP136.1 million in FY21. SPMD is currently trading at 2023f P/E of 78.6x and EV/EBITDA of 15.3x.

An official decision was sent to the fertilizers factories that the government will cut natural gas supplies (and so companies will cut its production) by 20% in order to save natural gas amid the recent electricity crisis. The decision will be applied this week. While the face value of the news is negative, the Impact depends on whether the 20% reduced output will be from local quota or exports. It should be from local quota. Higher urea prices should alleviate some of the effect.

MFPC decided in its latest BoD to contribute in the establishment of a new company to produce Green Hydrogen, that will be used in the production of Green Ammonia. 

Singapore-based chemical company Indorama has laid the groundwork for expanding its presence in Egypt after signing an MoU with the Sovereign Fund of Egypt (SFE), to explore options in several sectors including fertilizer production, phosphate extraction, renewable energy, and medical fibers.

ORAS and French electricity and renewables company Engie are in talks with the government to install solar power plants at two of EGAL's production facilities.

The Electricity Ministry is cutting the cement industry’s natural gas supply, but the extensive use of coal, together with the fact that plants are only running at 50-60% capacity due to the cement supply glut, should mean that operations remain unaffected.

The government to offer four water desalination plants in three months with investments estimated at USD300 million as part of the 5-year national plan to present 21 water desalination projects to the private sector.

Hotel occupancy rates in Egypt reached 80% in 1H23, compared to 65% in 1H22. 

According to JLL, resale real estate unit prices in West Cairo and Ea