Pre-Trading Thoughts

Al Ahly Pharos

Egypt is looking to attract some USD2 bn in foreign direct investment from EU countries in its industrial sector by the end of 2024. Also, Egypt seeks to increase its exports to the EU by 10% by the end of this year, rising from EUR11.5 bn in 2023, to EUR12.6 bn in 2024.

The CBE sold EUR610 mn one-year treasury bills on Monday, with an average yield of 3.75%, which is 0.25% less than the previous bid of 4.00%.

The government has approved a EGP7 bn of subsidized loans for pharma companies, offering them financing at an interest rate of 5-7% to help streamline meds production and secure necessary imports.

State grains buyer GASC has purchased 280k tons of wheat in a tender that closed yesterday, locking in just c. 7% of the 3.8 mn tons it aimed to purchase.

Egypt will set up a logistics zone in Rwanda, after the Rwandan side allocated the necessary land near its border with Tanzania. The move will help facilitate Egyptian companies’ access to the Rwandan market.

A government official said that Egypt’s imports of Israeli natural gas increased by about 5% during August to about 890 mn cubic feet per day, compared to 850 mn cubic feet at the beginning of last July, pointing out that the coming weeks will witness an increase in the volume of imports to a level ranging between 920 and 950 mn cubic feet per day, which is determined in coordination between the two sides.

CBE data revealed that the balance of bonds and sukuk issued abroad held by non-residents amounted to about USD29.8 bn by the end of 2023.

GAFI has approached the final stage of allocating an industrial zone to a group of Chinese investors on the Mediterranean coast, to establish factories specialized in agricultural manufacturing, automobiles, spinning and weaving.

ESRS received from the European Trade Commission on 8 August 2024 a Notice of initiation of anti-dumping investigations concerning imports of hot-rolled flat steel (HRC) originating in Egypt, India, Japan and Vietnam. The investigations are initiated based on a complaint submitted by the European Steel Association (EUROFER). This implies a significant risk on ESRS where two-thirds of the company’s HRC exports are directed to European countries, representing around 14% of total revenues.

SWDY denied rumors to change the company’s listing currency in the EGX from EGP to USD.
The Ministry of Local Development has shortened the procedures for obtaining building permits in the governorates to 8 steps instead of 15 procedures previously.

MASR achieved solid 2Q24 sales of EGP6.0 billion, up 71.3% y/y and expectedly down 59.6% q/q following a strong 1Q24 that had been fueled by pre-devaluation demand. This brought 1H24 sales up 294.0% y/y to EGP20.9 billion.

MASR established a real estate asset management subsidiary called Doors and is opening a branch in Saudi Arabia soon.

The government is in talks with Eni to build a regasification unit, with investments of about USD150 million, in Damietta.

The Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for demand growth this year to 2.11 million barrels per day (bpd) in its monthly market report released on Monday.

TCI Sanmar Chemicals expressed interest in establishing a new ethylene receiving and transport station at West Port Said Port, with an investment of USD150 million.

COMI has acquired 45% of Global Corp securitization issuances, which amounts to EGP610 mn.

Easy lease, Al Ahly Capital leasing arm, is planning to execute a capital increase plan of EGP350 mn over the next 2 years (as a first step towards a probable IPO by 2027).

CICH can trade in carbon emissions reduction certificates in the voluntary carbon market after it got the greenlight from the FRA.

The CBE is finalizing the technical infrastructure needed to allow mobile contactless payments.