Pre-Trading Thoughts

Al Ahly Pharos

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 forwards eased 1.2% yesterday to 36.025 against the USD.

Unemployment dipped to 7.2% in 4Q22, down 0.2 percentage points from the July-September quarter.

Representatives of a number of Turkish companies met with Prime Minister Madbouly yesterday, where they discussed plans to invest a combined USD500 million to expand Egypt operations.

EAST 2Q22/23 net profit reached EGP2,025 mn (+53.1% YoY, +44.1% QoQ).

Poultry producers are being added to the list of 19 industries getting a three-year holiday from real estate taxes until the end of 2024.

Chipsy Food Industries launched a new USD20 million production line inside its factory in Sixth of October.

CNFN 4Q22 net profit increased by 38% y/y to EGP205 mn, bringing net profit up 21% y/y to EGP609 mn in 2022.

Adnoc Distribution has completed its acquisition of a 50% stake in fuel retailer TotalEnergies Egypt.
Egypt will boost its LNG exports to Europe in the long term. Egypt is aiming to increase its LNG exports by around 40% starting 2025, the majority of which will be earmarked to the European market.
The Egyptian General Petroleum Corporation signed a concession agreement with INA and Energean, allowing the two companies to begin exploratory drilling at their 50-50 East Bir El Nus concession in the Western Desert.

Global oil demand is set to increase by 2 million barrels per day this year, pushed up by growth in Chinese consumption.

The government yesterday launched three key bodies that will work to implement its national automotive strategy (Automotive Industry Development Program).

Authorities also signed framework agreements with local and global automakers (Stellantis, Nissan, and Al Mansour Automotive) on localizing their assembly operations.

El Sewedy Data Centers, a subsidiary of El Sewedy Capital, signed an MoU this week to build three data centers in Egypt.

Sedico Pharmaceutical started the trial operation of the first factory to produce oncology drugs in Egypt, at an investment cost of around EGP1 billion.