Pre-Trading Thoughts

Al Ahly Pharos

Fed meeting will start today. Consensus expects the Fed to go ahead with a 75-bps rate hike.

Joint working committees within the Egyptian Stock Exchange, NBE, BM, and BdC are exploring the listing of 38 affiliated companies.

Prime Minister launched a digital platform to discuss the State Ownership Policy Document.

Egypt's industrial production fell 6.3% MoM in April (Bloomberg).

Suez Canal Authority will continue to grant rebates to LPG vessels operating between the American Gulf and India until year-end.

State will freeze electricity prices for the next fiscal year.

Russian tourists arriving in Egypt during the summer of 2022 are expected to rise by 30%.

A strategy to increase tourism in Egypt includes improving the investment climate through a one-stop-shop for investors.

e-Health (35% owned by EFIH), began the universal health insurance scheme in five governorates; Expected to generate operational synergies with e-finance Digital Operations, e-Cards, and e-Nable.

Beltone Financial has suspended the WM Consultancy-led consortium from doing due diligence after receiving a rival offer from Chimera Investments with no due diligence involved.

ATLC is currently in negotiations to borrow EGP 500 million from a local bank.

Leasing contracts grew 32.4% YoY in 1Q22. Property insurance payments rose 9.8% y-o-y to EGP 13.21 bn. Mortgage financing in 1Q 2022 rose 103.5% y-o-y to EGP 3.47 bn. Some 36 new companies obtained microfinancing licenses. Consumer financing hit around EGP 6.8 bn during the quarter.

Banque du Caire's net profit exceeded EGP 800 million in 1Q22.

Saudi company Alrajhi Group is entering into a partnership with Akam Developments to develop a North Coast project at an investment cost of up to EGP8.0 billion.

SVCE reported a net loss of EGP31.2 million in 1Q22. Revenues from investments reached EGP51.5 million.

El Nasr Automotive has signed an MoU with Chinese car manufacturer BAIC Group to produce EVs in Egypt.

ELSH declared cash dividends of EGP0.15/share (DY of 2.5%). Record date is 26 June 2022.

UNIT Board approved continuing purchasing treasury shares during the period 13 June 2022 - 12 September 2022.

Commodity Updates Last Price WoW Change, %

Brent, USD/bbl 120.4 0.9%

Diesel-HSFO Spread, USD/ton 710.6 2.8%

Egypt Urea, USD/ton 720.0 0.0%

Polyethylene, USD/ton 1,400.0 -3.4%

Polypropylene, USD/ton 1,180.0 -0.9%

Steel/Iron Ore Spreads, USD/ton 433.0 -5.0%

Aluminum Cash Price, USD/ton 2,661.0 -3.3%

Egyptian Retail Cement, EGP/ton 1,215.0 3.0%

Steam Coal FOB Newcastle Australia, USD/ton 392.4 -5.5%

Crude Palm Oil, USD/MT 1,350.5 -9.4%

SMP, USD/MT 4,116.0 3.0%