Pre-Trading Thoughts

Al Ahly Pharos

Minister of Planning announced that Egypt aims to reach a growth rate of 4.2% in FY2024-25, up from 3% for the current year.

Egypt Post’s investment arm could invest as much as EGP6 billion throughout the year split between private equity investments and investments in EGX-listed companies.

Importers are reportedly expecting banks' provision of foreign currency to complete the procedures for opening letters of credit, accelerating the pace of importing new shipments during the coming period. Sources said that the banks they deal with notified them of depositing the value in EGP and opening a letter of credit for it, with promises to provide USD, but did not specify the rate or time.

The Sovereign Fund of Egypt is looking into launching three sub-funds for education, agriculture, and healthcare in a bid to bring in more investments into the local market.

The Ministry of Electricity expects to attract foreign investments in the field of renewable energy amounting to more than USD2.5 billion during 2024 and 2025, specifically in solar and wind energy projects.

The House’s Legislative and Constitutional Affairs Committee will convene today to discuss amendments to the 2018’s Consumer Protection Law, as the government looks to toughen penalties for withholding strategic food commodities from the market.

The Institute of International Finance (IFF) forecasts Egypt's economic growth to slow to 2.8% in the event that the war on Gaza is contained and Red Sea shipping resumes in a couple of months.

The Governor of the CBE said that about USD100 million will be provided to import oils and dairy, according to the requests of the Ministry of Supply.

The Minister of Finance revealed that the Cabinet approved a draft law aimed at merging the budgets of 59 economic authorities with the state’s general budget.

Shalatin Mineral Resources Company increased its gold deliveries to the CBE by 14% in 2023 to about 720 kilograms of gold, worth EGP1.3 billion.

Public Enterprises Ministry will ink a contract with an Indian company within days to build a solar power plant to supply EGAL with energy in a bid to ramp up the company’s exports to markets seeking products made with a lower carbon footprint.

A new USD3 billion aluminum factory is in the pipeline in partnership with Emirates Global Aluminum to be located somewhere in northern Egypt with an estimated production capacity of 600k tons.

MOPCO release 4Q23 audited standalone results. Net profit increased 356% YoY to EGP824.3 million in 4Q23. Net profit grew 55.8% YoY in 2023 to EGP5.97 billion.

KIMA is selling four unused land plots in Aswan with a total area of 52,564 sqm. The sale will be through a public auction on 3 March 2024 using closed envelopes.

EKHO has taken an interest in and is open to investing in stakes in companies being offered up by the state asset sale program.

According to the Minister of Petroleum, Middle East Oil Refinery’s (MIDOR) refinery expansions are planned to start full operations next March with investments worth USD2.7 billion.

Chevron’s Tamar gas field in Israel, which also supplies gas to Egypt and Jordan, will increase daily production to 1.6 billion cubic feet per day, from a current 1 billion cubic feet per day.

QNBA's BoD decided to amend the proposed cash dividend distribution to EGP1.00/share from EGP1.50/share, implying a payout ratio of 13% and DY of 2.6%.

ALCN announced cash dividends of EGP2.40/share, partially paid in USD, and the remaining will be paid in EGP. The EGP coupon amounts to EGP1.94/share.

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 27 April 2024.

ZMID reported FY23 net profit of EGP324.2 million, up 24.2% y/y.

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