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Welcome to our daily podcast featuring the day's top news commentary and technical recommendations delivered to you before the opening bells of the Egyptian Stock Exchange (EGX).Alongside our morning podcasts, we will be publishing a collection of episodes presenting indepth analysis and insights on EGX's equities, all brought to you by Al Ahly Pharos.
Market Overview Prepared by:Mayada Amin - CETA, CFTeAl Ahly Pharos による
Net foreign direct investment (FDI) inflows to Egypt registered USD8.90 billion in 2022, the highest level since 2011. That’s 74% higher than 2021. The SFE will wait until the end of Ramadan to start taking companies in its pre-IPO fund to market. The SFE has added Salhia Investment and Development Company to the pre-IPO fund. Restaurants, malls, a…
Market Overview Prepared by:Mayada Amin- CETA, CFTeAl Ahly Pharos による
The House yesterday voted through legislative amendments allowing the government to borrow an extra EGP 165 bn for the final quarter of the current fiscal year. Around EGP 70 bn will be used to increase funding to social protection programs while EGP 85 bn of the new borrowing will be spent on servicing government debt in the April-June quarter. Fo…
-UBS will acquire Credit Suisse USD 3.25 bn in return for receiving up to CHF 100 bn in liquidity from the Swiss central bank. - Minister of Finance revealed draft state budget for FY23/24. It factors in 5% real GDP growth, a primary surplus of 2.5% of GDP, and an overall deficit of 6.37% of GDP. -El Sisi has directed the government to raise the pe…
Market Overview Prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos による
As Egypt prepares to trade with Russia in local currencies, it is now looking at making similar arrangements with China and India. The Emigration Ministry will set up a new company aimed at encouraging Egyptians living abroad to invest in the local economy and bring more hard currency into the country. The Minister of Finance said that Egypt aims t…
Market OverviewAl Ahly Pharos による
EGX30 saw its biggest drop in three years yesterday as the fallout from the US banking crisis continued to send tremors through global financial markets. Credit Suisse will borrow as much as USD54 billion from the Swiss central bank and will buy back some of its debt in a bid to improve liquidity and curb investors’ fears. The government will start…
Following several days of volatility, US stocks rose, with bank shares regaining much of the losses triggered by the collapse of several US lenders last week. Markets were also supported by the fact that annual US inflation continued to decline in February, in the hope of a dovish rate decision next week. Moody’s has downgraded its outlook for the …
Some global investment banks, including Goldman Sachs and Pimco, now think the Federal Reserve will pause on its tightening cycle when it meets next week to prevent the US banking crisis from intensifying. Global investment banks are calling for further depreciation in the EGP and a major rate hike of 200-300 bps. The number of tourists visiting Eg…
Market Overview Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
US authorities announced they would guarantee all deposits in a bid to prevent a wider banking crisis. Silicon Valley Bank’s Failure May Lead to Smaller Fed Rate Hike, which will relieve the pressure off emerging markets. CBE noted that there are no negative repercussions on the Egyptian banking sector, from the failure of the American Silicon Vall…
Market Overview Prepared by: Mayada Amin- CETA ,CFTeAl Ahly Pharos による
Silicon Valley Bank last week became the biggest casualty so far of surging US interest rates, collapsing on Friday. Annual urban inflation jumped 31.9% y-o-y in February, up from 25.8% in January. Monthly headline inflation accelerated to 6.5% from 4.7% in January. The government will unveil its largest-ever export subsidy program next week. CBE h…
Market Overview FWRY ORWE MENA EGTS ACGC Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
The state prefers selling stakes in state-owned companies to strategic investors over public share sales, Prime Minister said. He added that the government has a clear plan for securing US dollars for a year. He declared that Egypt can sell stakes in companies outside the list of 32 announced earlier. Egypt is expanding the number of ways to acquir…
- Market Overview - Prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos による
Egyptian pound has weakened on Tuesday where its 12-month non-deliverable forward (NDF) fell to a fresh all-time low to EGP38 per dollar, Bloomberg Al Sharq reported. According to Al-Mal newspaper, the government received foreign offers to acquire a 20-30% stake in Beni Suef Electricity. However, the government is yet to decide whether it will be o…
Market Overview Prepared by : Mayada Amin - CETA -CFTeAl Ahly Pharos による
The SFE’s pre-IPO fund is set to offer stakes in 2-3 state-owned companies to strategic investors or via public share sales in April. Stake sales in 11 of the 32 companies in the government’s privatization program will be managed through the pre-IPO fund. Strategic investors from the Gulf could spend USD4 billion to buy into local firms in a first …
Market Overview ORWE ORHD ACAMD MICH ALCN Prepared by: Mayada Amin, CETA, CFTeAl Ahly Pharos による
*Key news articles for today* Net foreign reserves inched up to USD34.35 billion in February from USD34.22 billion in January 2023. Budget deficit increased by 4% YoY to EGP367 billion during 1H22/23 as government expenses increased by 19.7% YoY. This came due to a 36.2% YoY hike in interest expenses accounting for 41.7% of total expenses. The cabi…
Market Overview Prepared by: Mayada Amin - CETA- CFTeAl Ahly Pharos による
Egypt’s PMI posted 46.9 in February, compared to 45.5 in January. The net foreign liability position of the Egyptian banking system widened to USD21.7 billion in January from USD20 billion in December. The President announced a EGP150 billion program that includes wage increases and a higher minimum wage for civil servants, higher pension payouts f…
Market Overview ASCM ISMQ CICH AMIA Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
Gasoline prices in Egypt, as of today, will rise by 7-11%, in light of Brent and exchange rate movements. The cost of mazut will increase by 20% to EGP6k per ton except for food and electricity producers, who will continue to be charged EGP4.2k per ton. Diesel prices will remain unchanged at EGP7.25 per liter. International wheat prices are heading…
- Market Overview - CCAP - PHDC - MNHD - ATLC - ELSH - AFDI - prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos による
Planning Minister: Egypt and Qatar are considering establishing a joint investment fund. Prime Minister during talks in Doha: Egypt is on its way out of its economic crisis and the currency shortage witnessed over the past year is almost at an end. Qatari investors will be allowed to repatriate profits and pledged not to introduce capital controls …
We remind you that MSCI EM rebalancing for February will be executed today, during which inflows of USD 1-2 million are expected for ESRS and HELI since they were added to the MSCI Egypt small-cap index. The Ministry of Finance updated its targets for the budget deficit in FY22/23 to 6.8% of GDP, compared to the 6.1% budgeted originally. Key change…
Egypt, the UAE, Jordan, and Bahrain signed agreements to establish nine joint industrial projects at an investment cost of USD 2 bn. AUTO consolidated attributable net income in 4Q22 amounted to EGP8,714 mn compared to EGP413 mn in 4Q2. FY22 bottom-line recorded EGP9,985 mn compared to EGP1,408 mn recorded in FY21. The sharp incline was backed by t…
Market Overview ABUK ADIB EKHOA JUFO ALCN CSAG SWDY Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
Bloomberg reported that GCC countries await stability in Egypt's FX rate and an in-depth economic reform program before the injection of billions worth of investments into Egypt. Prime Minister is heading to Qatar today in a bid to push forward talks for fresh Qatari investment. Egypt is set to take its inaugural panda bond issuance to the market i…
Market Overview Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
Egypt's USD1.5 billion Sukuk issuance was c.4x oversubscribed, which narrowed the final yield to 10.875% from an initial guidance of 11.625%. Cabinet approved yesterday setting price floors for corn, soybean, and sunflower crops sold by farmers to the government, to encourage farmers to increase production and lower the country’s import bill. FDI i…
Egypt's sovereign sukuk of USD 1.5 bn was about 3.5x oversubscribed. The final guidance price is 11.125% (± 1/8th). The government is planning to list Misr Life Insurance by the end of 1H2023. EGCH (Kima) is targeting to secure USD300 million to finance new production lines; 600 million tons for nitric acid and 800 million tons of ammonium nitrates…
Market Overview COMI AMOC ABUK CCAP ORHD ORWE ETRS EGAL prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
A delegation from the EGX, the Central Bank of Egypt, and the Financial Regulatory Authority (FRA) wrapped up on Friday the week-long roadshow in Riyadh, Abu Dhabi, and Dubai where they met with 20 investment funds and institutions to raise interest in the government’s privatization program. EBRD is expecting the domestic economy to grow at 4.3% in…
The government has received several expressions of interest from international investors to look further into the details of the 32 companies to be sold under the government privatization program. The period from 1-18th of February witnessed the release of goods worth USD3.7 billion from Egyptian Ports, as per the Cabinet statement. The government …
Investment banks are expected to finish three days of calls with investors regarding a potential Sukuk issuance by Egypt tomorrow. The Omani Investment Authority is looking for investment opportunities within the Egyptian market. A number of local, Gulf, and European investors submitted offers to acquire stakes in Egypt's largest wind power plants …
- Market Overview - COMI - CCAP - DOMT - AMOC - KABO - EGAL - prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos による
Egypt aims to make its first sovereign sukuk sale as soon as next week. The issuance could be worth up to USD1.5 billion. Demand for USD is unlikely to ease up until Ramadan as traders finish stocking imported essentials. Pressure will also arise in mid-April when dividend repatriation season begins. Bloomberg reported that 12-month non-deliverable…
