Egypt’s annual urban rate of inflation inched up to 36.5% y-o-y in July, from 35.7% in June. On a monthly basis, inflation slowed for the second consecutive month, to 1.9% from 2.1% in June.

Core inflation — which strips out volatile items such as food and fuel — dipped to 40.7% y-o-y in July from June’s 41%. Monthly core inflation fell to 1.3% in July from 1.7% in June. 

In tandem with consensus expectations, S&P Global reported that it is predicting an FX adjustment in Egypt by September or October in tandem with the delayed IMF review.

Moody’s is extending its review of a potential downgrade for Egypt’s sovereign credit rating as it weighs progress on the government's reform agenda against evidence of weakening FX liquidity and the likelihood of further currency devaluation. 

Egypt’s budget deficit narrowed to 6.0% of GDP in FY22/23, below the expected 6.2%. The primary surplus reached 1.6% of GDP, up from 1.3% the year before. The debt-to-GDP ratio rose to 95.6% from 87.4% the year before, in line with expectations.

Total gas output in Egypt fell by 5% QoQ and 9% YoY in 2Q 2023 from the previous quarter to 5.88 bn cubic feet per day (cf/d).

The National Bank of Egypt and Misr Life Insurance intend to launch a USD-denominated pension plan for Egyptians abroad.

The CBE intends to offer this Tuesday treasury bills worth EUR600 million for one year.

The Export Development Fund is currently disbursing the second tranche of the sixth phase of the export rebate program, with total net rebates of EGP3.8 billion for 772 companies. (ORWE, DSCW)

Global oil demand reached an all-time high in June and could break records again this month amid rising consumption in China. The crude benchmark last week surpassed USD88/bbl for the first time since the end of January.

FWRY reported 2Q23 net income of EGP159.8 mn (5x YoY, 30% QoQ), leading to 1H23 net income of EGP283.1 mn (4x YoY), driven by solid margins and revenue growth from banking services. P/E is 35x for 2023.

Work related to the execution of the Dabaa nuclear power plant is progressing within the timeframe agreed upon with the Russian company and has not stopped, according to the Head of the Nuclear Power Plants Authority.

HRHO (FV: EGP18.31, OW) 2Q23 net profit after tax and minority interest recorded EGP405 million (-54% q/q, +20% y/y), bringing 1H23 net attributable profit to EGP1,290 million (+89% y/y). Annual performance was solely supported by aiBank profits, as IB platform profits showed limited growth on higher deferred taxes, coupled with lower non-banking financial services profits with higher expenses and provisions. HRHO is currently trading at P/E23 10.6x and P/B23 1.1x.

HDBK (FV: EGP 24.50, OW) released 2Q23 bottom line of EGP1,690 million (+28% q/q, +200% y/y) so that 1H23 bottom line reaches EGP3,015 million (+150% y/y). Annual and sequential performance was boosted by 1) robust margins, 2) strong non-interest income, 3) lower effective tax rate, and 4) sequentially lower provisions. HDBK is currently trading at 2023 P/E of 2.8x and P/B of 0.9x based on adjusted bottom-line growth of 83% in 2023.

OCDI (FV: EGP23.30, OW) plans to add 550 hotel rooms to its project portfolio, starting with 180 hotel rooms in North Coast project, June. OCDI also plans to deliver the first units in its North Coast project, June, in 3Q23.

According to local media, local investors are studying acquiring MHOT and are searching for a foreign investor to join their consortium.

SUGR (FV: EGP45.00, OW) released 2Q23 net profit of EGP765 mn (+64% YoY, +136% QoQ), leading to a 1H23 net profit of EGP1,088 mn (+100% YoY). The quarter recorded provisions of EGP200 mn along with investment expenses of EGP185 mn that brought down NPM to levels below that of its comparable periods despite the hike in gross profitability and EBITDA. SUGR is trading at a FY23 P/E of 5.2x and an EV/EBITDA of 3