Pre-Trading Thoughts

Al Ahly Pharos

*Key news articles for today*

A number of recent agreements with Gulf and local investors had a positive response from the IMF.

Egypt has bought new hedging contracts to protect itself from rising oil prices, Finance Minister said. The derivatives will remain in place until the end of the current fiscal year in June. Press said that contracts lock in crude purchases at around USD 75-80 per barrel.

Egypt gas production inched up by 1.8% MoM in July, recording 5 bcm. During 7M2023, production fell by 7.7% YoY to 35.5 bcm.

Foreign balance of T-bills fell in May to USD12.2 billion down from USD12.7 in April.

Egypt is reportedly in talks with the Russian government to purchase 1 mn tons of wheat for delivery this season.

Global trade contracted at its quickest rate since 2020 in July, as volumes declined 3.2% YoY during the month, accelerating from June when trade fell 2.4%. Reasons include sharply higher interest rates across the world and higher inflation.

Four international oil and gas firms have received exploration blocks via the bid round launched by the state-owned Egyptian Natural Gas Holding Company last year, the Oil Ministry said. The companies will be required to invest a minimum of USD281 million, along with a USD7.5 million signing fee in the exploration period. They will also need to drill at least 12 wells in each block.

MTIE’s BoD approved establishing a company in Saudi Arabia with a 100% ownership. The equity has not been determined yet.

Banque Misr is considering the listing of its Misr Real Estate Investment fund launched in 2022, which reached EGP360 mn at first close and has a target capital of EGP500 mn. Banque Misr is currently cooperating with the Sovereign Fund to support the listing of companies it owns shares in on the EGX as a part of the bank's strategy to exit its investments in some companies after the end of the investment period

The American company AmerisourceBergen is considering exiting UCP United Pharmacists within the coming period, amid the financial instability that UCP is facing.