Pre-Trading Thoughts

Al Ahly Pharos

The IMF will be watching for a shift by Egypt to a flexible exchange rate after a requirement to finance imports through letters of credit is phased out at the end of this month.
The Suez Canal Authority expects revenues to rise 15% to hit a record USD8 billion in FY2022-2023.
The SCA will continue granting dry bulk ships moving between West Africa and East Asian ports a 75% rebate on transit fees until 30 June 2023.
The Emirati National Marine Dredging Company (NMDC) has won a contract worth AED1 billion (USD272 million) for dredging works in the Suez Canal.
The EBRD and the UN’s Food and Agriculture Organization have announced a USD5.5 million package of technical assistance aimed at improving food security in Egypt, Jordan, Lebanon, Morocco, Tunisia and Gaza.
In attempt to lower gas prices, the European Union energy ministers agreed a gas price cap.
SPMD (FV: 0.55, EW) released 9M22 financial results, recording a net loss of EGP83.4 million in 9M22, compared to a net profit of EGP164.4 million in 9M21.
COMI and HSBC have lowered monthly limits on withdrawals and purchases made using their debit and credit cards abroad. The limits were introduced first in October in a move to conserve the banks’ FX assets.
Banque Misr, Banque du Caire, Misr Insurance Holding, and Allianz have launched a real estate investment fund which will invest in commercial property. The fund has a target capital of EGP500 mn.
GB Capital and Chimera finalised the previously disclosed transaction of selling 45% of GB Lease with total proceeds of EGP855 mn.
Organization of Arab petroleum exporting countries (OAPEC) expects that egyptian exports of LNG shall range between 7 to 8 million tons this year (2022), based on expectations of higher global demand in the last quarter of the year.
Ashry Steel plans to build two new projects over an area of 420k sqm in Sadat and 6th of October cities.
Marakby Steel plans to increase its exports to 70% of total production next year up from the current 40%.
Weekly Commodities Update:

| Chems & Petchems | | Last Price | WoW Change, %
| Brent, USD/bbl | 79.6 | 5.2%
| Diesel-HSFO Spread, USD/ton | 561.3 | 18.1%
| Egypt Urea, USD/ton | 551.5 | -2.0%
| Polyethylene, USD/ton | 1,030.0 | 0.0%
| Polypropylene, USD/ton | 940.0 | 0.5%
| Steel/Iron Ore Spreads, USD/ton | 448.1 | -3.0%
| LME Aluminum Cash Price, USD/ton | 2,337.1 | -1.6%
| Egyptian Retail Cement, EGP/ton | 1,713.0 | 0.0%
| Steam Coal FOB Newcastle Australia, USD/ton | 403.0 | 0.7%
| SMP, USD/MT | 3,102.0 | 1.5%