Pre-Trading Thoughts

Al Ahly Pharos

CAPMAS is expected to release inflation figures for October on Sunday, 10 November. We expect urban annual inflation to hit around 27%.

Net International Reserves recorded USD46.9 billion at the end of October 2024, up USD205 million from September’s USD46.7 billion.

Investment Minister Hassan El Khatib will unveil the revamped privatization program before the end of the month, Prime Minister said.

Egyptian officials and the IMF mission are in discussions over how they can extend the timeline of implementing some of the reforms previously agreed upon with the Fund.

The government spent EGP28.5 billion on fuel subsidies in 1Q of the current fiscal year, marking a 232% YoY increase.

The Finance Ministry provided an additional EGP53 billion to the Oil Ministry in 1Q24/25 to help it settle payments to foreign partners and secure imports for strategic stockpiling.

The CBE has instructed banks to begin processing car importers’ requests for USD-denominated letters of credit, ending a six-month halt, sources said.

LSE-listed Energean confirmed in a meeting with Oil Minister Karim Badawi that the USD945 million sale of its Egyptian, Croatian, and Italian assets to global investment firm Carlyle is set to go through by the end of the year.

Egypt is set to launch a global tender for gold mining and exploration at approximately 200 sites in the Eastern Desert by the end of the year.

The CEO of the Italian company Eni revealed that the company will return to drilling gas wells again in the Zohr field by the end of this year.

China’s Anton Oilfield Services Group and the UAE’s Mubadala Energy are looking to explore investments and collaboration in Egypt’s oil sector.

The government is planning to launch 11 new tenders for investments under the public-private partnership (PPP) model, with targeted investment costs totaling EGP62 billion.

The government approved the redrafted Labor Act after several rounds of discussions.

Cabinet also approved granting the Tunisian automotive cable manufacturer Coficab the golden license for its up to USD88 million automotive cable and electrical factory in Tenth of Ramadan City.

Cabinet approved granting MAFI Agricultural Produce Industries a golden license for its agri-food industrial project in Sadat City.

CIEB released 3Q24 consolidated bottom line of EGP1,874 million (-3% q/q, +44% y/y).

OFH received an offer to sell its 99%-owned subsidiary, Klivvr, for EGP657.7 million.

CICH’s micro-financing arm, Reefy, raised EGP884 million in the second securitization issuance.

ESRS denied, in a release to EGX, receiving any official offers or ongoing negotiations for the purchase of its free-floating shares on the EGX.

SWDY partnered with KSA’s Abunayyan Holding to produce high and extra-high voltage power transformers in the Saudi market. The company also launched a procurement tender with Saudi Electricity Company for the domestic production of medium-voltage cable accessories.

According to local media, TMGH YTD sales have reached EGP470 billion. This figure likely includes not only TMGH sales, but also sales made for third parties for which TMGH receives commissions.

ETEL and Alcatel Submarine Networks (ASN) have announced the successful landing of the Africa-1 subsea cable system in Egypt at the Ras Ghareb cable landing station on the Red Sea.

ALCN reported results for 1Q24/25. Bottom line came in at EGP1.8 billion compared to EGP981 billion in 1Q23/24.

The Head of the Egyptian General Petroleum Corporation announced signing investment agreement with Apache to increase gas production in the Western Desert where production will start in 1Q25.

Egyptian fertilizer exporters are currently negotiating with the biggest American fertilizer distributors to open new export markets in the US.