Pre-Trading Thoughts

Al Ahly Pharos

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 in 1QFY22/23 reached USD3.3 billion (+94% YoY).

Egypt secured USD330 million from Japan to support The Universal Healthcare program.

Cabinet approved yesterday a request by the Ministry of Housing to stop any subsidies for low-income housing units, which used to be sold excluding the value of the land.

Ministry of Electricity and Renewable Energy is negotiating with ORAS to launch wind electricity generation projects with capacities that could reach 3,000 MW and investments up to USD3 billion. The projects are planned to be fully operational by 2028.

ECAP 4Q22 net profit reached EGP44.2 million (+208.0% YoY, -18.9% QoQ), bringing FY22 net profit to EGP171.1 million (+75.6% YoY).

Almarai has bought PepsiCo’s entire 48% stake in the parent company of juice and dairy producer Beyti for USD68 million. Almarai is considering exporting some USD240 million worth of Egypt-made juices and food products to its Saudi factories every year.

Stellantis, Nissan, and Al Mansour Automotive could invest a total of USD145 million in the nation’s auto industry over the next three years. If all three agreements are executed, the companies would produce a total of 60k-70k traditional and electric vehicles every year, some of which would be earmarked for export.

The Public Investment Fund has reportedly hit pause on talks for the acquisition of state-owned United Bank due to a dispute over its valuation.

Oil prices fell to their lowest in two weeks on Wednesday. Brent crude futures settled 3% lower at USD80.60/bbl.
Kima denied the details published yesterday about the new ammonium nitrate and nitric acid project. The company clarified that the investment cost and financing structure are still under study and not determined yet.

ZMID reported FY22 net profit of EGP261.1 million, up 0.7% y/y. The Board proposed the distribution of EGP0.15/share cash dividends.

Damietta Containers and Cargo Handling Company is negotiating with four major shipping lines to add a number of services to its terminal by the end of 1H23 as part of a strategy to increase number of containers handled.

NTRA fined Egypt’s MNOs a combined EGP35.7 million for failing to meet standards.