Pre-Trading Thoughts

Al Ahly Pharos

Core inflation climbed 16.7% from a year earlier, up from 15.6% in July.

The European Central Bank raised interest rates by a historic 75 basis points — and its head hinted there could be more jumbo rate hikes to come.

Suez Canal revenues hit an all-time high of USD 744.8 mn in August (+32% YoY. Tonnage increased 16% YoY to 127.8 mn tons.

Suez Canal Authority intends to list subsidiaries on the Egyptian Stock Exchange at the end of this year or early next year.

The Customs Authority relies daily on the exchange rates announced by the CBE to determine the customs’ exchange rate.

The government started preparing for the establishment of a joint stock company for Egyptians abroad to invest in various economic activities, offering shares in national projects.

The proceeds from real estate taxes increased during the first two months of the current fiscal year by 11.3% YoY, to reach 831.1 million pounds.

Tax Authority has opened registration for the second phase of the e-receipt system.

The Sovereign Fund of Egypt intends to offer 20 desalination plants to the private sector after completing the evaluation process within two months.

El-Sisi held meetings with Scatec Energy to discuss the establishment of a project to produce 3 GW of wind energy, and with Australian Energy FFI to discuss generating 9.2 GW of electricity from renewable energy.

The Saudi Investment Fund (PIF) plans to invest in the egyptian petrochemicals sector as a part of its USD10 billion investments program (AMOC, SKPC and MICH).

ESRS reported exceptional performance for 2Q22 with attributable net income standing at EGP1.8 billion. GPM of 30.3% for the quarter. ESRS is currently trading at FY22e P/E of 2.7x and EV/EBITDA of 3.2x.

OCDI relaunched its 464 feddan New Zayed project after being re-masterplanned due to the rezoning of the New Zayed area at large. This should boost sales in an already strong year for OCDI sales in FY22.

Expedition Investments bidding to acquire 34% of DOMT (FV: EGP6.00, OW) is now offering to purchase shares for EGP 5.50 apiece, up from EGP 5.00 before.

HRHO is close to launching a fund with a capital of EGP1.5 billion that invests in startups, along with HSBC, and several regional and local banks.

CIB has acquired a 15% stake in El Sewedy Engineering Industries (SEI) through a capital increase.

BINV is going to have to decide by next Thursday whether it wants to preempt Adnoc Distribution’s bid to acquire a 50% stake of TotalEnergies Egypt.

CNFN will manage a Sukuk program worth EGP 2 billion for Misr Capital and CI Capital.