Pre-Trading Thoughts

Al Ahly Pharos

The OPEC Fund for International Development (OPEC Fund) is providing Egypt USD10 mn to finance imports of vital food and agricultural commodities. The loan is part of a USD200 mn trade finance facility with the International Islamic Trade Finance Corporation (ITFC) supporting food security in Egypt.
Global growth will slow to 2.7% in 2024 from an expected 3.0% this year on the back of tightening global financial conditions and a slowdown in China, according to new OECD forecasts.
Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to acquire three private Egyptian companies in the healthcare, education, and real estate development sectors.
DSCW announced yesterday that they have received preliminary offer from consortium of Toma for Commercial and Industrial Investments to acquire 90% of the company’s shares (1.6 bn share) for the price of EGP0.65/share and a total amount of EGP1,045 mn. The offered is higher than yesterday’s closing price by 6.6% and higher than YTD average price by 33.7%. It’s worth mentioning that The Toma family owns 32.88% of DSCW’s shares.
Chevron plans to invest USD3 billion in 1H24 to develop their block in the Nargis natural gas concession in the Eastern Mediterranean.
Oil prices retreated further from 10-month highs on Wednesday ahead of the U.S. Federal Reserve's interest rate decision. Global benchmark Brent crude futures fell slightly over USD1 to USD93.33/bbl.
ADQ is acquiring the National Investment Bank's 14% stake in Ethydco, in addition to c. 50% of Al Ahly Capital's 21% stake as well as a yet to be determined part of Banque Misr stake. The sources added that the deal should be finalized within a month. ADQ is acquiring c. 27% stake in Ethydco at around USD300 million.
PHAR disclosed that there have been no negotiations or offers from the Indian company Reliance Life Sciences to acquire a share of the company and so far Reliance Life Sciences is just considered as main element in Eipico 3 project.
on another noote, PHAR’s BoD approved participation in the subscription of existing shareholders to increase the capital of Medical Union Pharmaceuticals (MUP) company to maintain its 10% ownership in MUP, with total subscription amount of around EGP84 million
RMDA's shareholders approved to decrease the company’s capital by EGP5 million to reach EGP375 million through cancellation of 20 million shares with par value of EGP0.25/ share.
The Saudi Egyptian Investment Company, affiliated with the Public Investment Fund, plans to raise its stake in EFIH to 28%, up from 25.02% currently.
Ministry of Transport plans to start the construction works of Cairo Alexandria Trade Logistics Development Project by mid 2024 with investments estimated at USD740 million. The Egyptian National Railways Authority, of the Ministry of Transport, received 11 offers from local and international alliances competing for the Project where the winner to be announced by maximum next April. Amongst the bidders are ORAS (FV: EGP181.70, OW), Hassan Allam, Petrojet, Arab Contractors, and Concord.
Egyptian banks have recorded net profit of EGP126.9 bn supported by interest income of EGP254 bn and other income of EGP44.7 bn amid operating costs of EGP172.4 bn as of 1H23. On the other side, Capital Adequacy Ratio (CAR) has increased and stood at 17.5% as of Jun-23 compared to 17% as of Mar-23.
According to Dr. Mohamed Farid, Chairman of the FRA, the FRA is ready to issue a customer complaints index in the insurance sector that includes various complaints submitted by customers, which will contribute to improving the services across insurance companies.