Pre-Trading Thoughts

Al Ahly Pharos

Suez Canal revenues increased by 12.8% YoY during 2021, reaching a record USD6.3 billion. Export revenues grew to record levels as well, amounting to USD31 billion in 2021.

The government intends to build 60 wheat silos in partnership with the private sector, each with a capacity of 60,000 tons.

The budget's overall deficit increased to EGP266.95 billion, about 3.7% of GDP during 5MFY2021/22, compared to 3.2% in the corresponding period of the last fiscal year.

The Ministry of Tourism asked tourist investor associations to send their vision about the sector in preparation for the development of a long-term strategy until 2030, in conjunction with offering a global tender to companies to promote various tourism products.

5 or 6 government companies public offerings on the EGX are expected during the current year.

SWDY's subsidiary, Egytech Cables (99.98% owned by SWDY), signed a EGP440 million contract for the supply, installation, and maintenance of 132 kV ground cables in El Mutlaa Residential City in Kuwait.

Passenger car sales witnessed a drop during the month of November, falling by 3.9% YoY to 19,734 cars in November 2021, according to monthly figures from the Automotive Information Council (AMIC). Passenger car sales for 11M21 totaled 261.5 thousand cars, a YoY rise of 28%.

Delta Sugar announced that the company has not been officially informed with the new sugar prices that have been earlier declared by the Minister of Supply in the local media from EGP8.5/Kg to EGP10.5/Kg. Officials believe that a formal notice will be sent by the beginning of new production season, which takes place in January.

EGTS’ lawsuit with Red Sea Resorts resulted in that EGTS is to receive USD336k and EGP5.1 million (totaling EGP10.4 million (EGP0.01/share)) in addition to interest and requiring Red Sea Resorts to build the garage for its hotel, and Red Sea Resorts is to receive USD747k (EGP11.8 million (EGP0.01/share)) in addition to 1% penalty fees for every late month. The court also ordered that EGTS present Red Sea Resorts with an alternative land area. EGTS is considering appealing the court order regarding the compensation to Red Sea Resorts.

ELKA received FRA approval to issue EGP146.1 million in securitized bonds and ELKA’s sister companies received approval to issue EGP190.6 million in securitized bonds.