We expect CBE to maintain interest rates at its meeting today in light of the preceding interest rate raises taken in December and March (+500 bps) to attempt to control the then expected rise in inflation. In addition, raising interest rates will be closely tied to the movement in the official exchange rate, which is not expected to happen before 4Q23. 

Oil cartel OPEC+ is expected to leave output at current levels when it meets tomorrow, according to Reuters.

Egyptian Trade Minister Ahmed Samir and his Turkish counterpart Ömer Bolat agreed yesterday to increase bilateral trade by 50% to USD15 billion over the next five years during talks in Ankara.

The Ministry of Electricity formed a committee to study offers submitted by Indian, Chinese, German, and American companies to supply batteries to store electricity produced from renewable energy.

Egyptian purchases of bullion and gold coins jumped during 2Q23 by 214% YoY to 10.4 tons. During 1H23, Egyptian purchases of bullion and gold coins amounted to 18.6 tons, compared to 19.2 tons in Jan-Dec 2022.

The cabinet yesterday approved an additional allocation of EGP2 billion to the sixth phase of the export subsidy program, increasing the total amount earmarked for this phase to EGP12 billion.

GASC bought 300k metric tons of wheat from Russia and another 60k metric tons from Romania in an international tender yesterday.

According to local media, TMGH achieved sales of EGP51.0 billion in 1H23. This figure likely includes not only TMGH sales, but also sales made for non-TMGH entities for which TMGH receives commissions.

According to local media, PHDC achieved sales of EGP10.2 billion in 2Q23 (+98.6% y/y, +50.9% q/q), bringing 1H23 sales to EGP17.0 billion, up 59.1% y/y.

Local fertilizers producers announced in EGX releases the impact of the natural gas feedstock 20% reduction decision on their production. EFIC stated that it is not affected by any means because it is producing phosphate fertilizers, which depends on the phosphate rock as its main input and natural gas is used in very small quantities as a fuel source. Kima noted that the ammonia produced was reduced by 20%; however, the company managed to overcome this drop thanks to the availability of ammonia in its inventories. EKHO announced that its subsidiary Alex Fert witnessed a very slight impact from the decision that will not have an effect on its performance.

Shell is set to begin drilling new gas exploration wells at its concession areas in the Mediterranean in September. 

According to local traders, free market fertilizers prices hiked after the new natural gas feedstock reduction decision. Average prices for fertilizers increased by EGP3,500/ton till now.

CIEB 2Q23 consolidated bottom line recorded EGP1,289 million (+5% q/q, +146% y/y. Annual and sequential growth were supported by: 1) improved margins, 2) robust gains from FX transactions, and 3) lower effective tax rate. CIEB is currently trading at 4.5x P/E23 and 1.3x P/B23.

CNFN has rolled out financing services for weddings and social events. It is offering up to EGP1 million in finance with no down payment, with repayment plans of up to three years.

MBSC recorded earnings of EGP43 million in 2Q23 compared to a net loss of EGP3 million in 2Q22 and 29% lower than 1Q23, brining 1H23 earnings to EGP105 million (+135% YoY). The annual surge in earnings was driven by healthy growth in revenues and operating margins despite a forex loss of EGP59 million recorded during the quarter. MBSC is currently trading at FY23e P/E of 4.9x, EV/EBITDA of 4.0x and EV/ton of EGP579.

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