Pre-Trading Thoughts

Al Ahly Pharos

Egypt and Turkey seek to boost trade from USD5 billion to USD15 billion over the next five years. The two countries signed 18 MoUs to strengthen cooperation on transport, energy, defense, education, tourism, health, culture, agriculture, and finance.

The Central Bank of Egypt’s (CBE) Monetary Policy Committee is meeting later today to review interest rates. We remind you that we expect the CBE to keep the current rates on hold, with a potential rate cut in 4Q24, or - more conservatively - in 1Q25.
Automotive player Stellantis is restarting assembly of the Jeep Grand Cherokee L locally at the factories of the Arab Organization for Industrialization’s Arab American Vehicles Company. Stellantis is reportedly in talks with the Industry Ministry over assembling Citroen’s C4X model in Egypt.

Egypt intends to make three payments worth USD633 million to the International Monetary Fund during September 2024.

The Egyptian Drug Authority and Unified Procurement Authority announced the launch of the government’s new unified purchasing initiative for inactive ingredients used in medicine production, as part of a bid to localize drug manufacturing. The initiative will begin with 30 substances that represent more than 60% of the import bill for inactive ingredients used in drug production.

As part of the restructuring of ownership of some subsidiaries of EKHO, EKHO announced that all the shares owned by the International Financial Investments Company (a subsidiary of EKHO) in the share capital of NatGas have been transferred to another subsidiary, Nat Energy B.V. (a wholly-owned subsidiary of EKHO). In addition, all shares owned by Nat Energy, Nat Gas, and EKHN B.V. (subsidiaries of EKHO) in the share capital of Kahraba have been transferred to another subsidiary, Kahraba B.V. (a wholly-owned subsidiary of EKHO). These transfers do not affect the indirect ownership of EKHO in the capital of the aforementioned companies.

TotalEnergies wants to supply gas from its fields in Cyprus to Egypt for liquefaction and re-export as LNG or to be fed directly into the grid, according to an Oil Ministry statement. The company is also evaluating investment offerings included in the government’s new oil and gas exploration tender that is currently being prepared.

HELI (FV: EGP18.84, OW) sold 90 units in New Heliopolis for EGP482.0 million. HELI plans to offer 200 units in New Heliopolis at the end of October 2024.

NTRA is studying allowing MNOs to increase services' prices after fuel prices increased, according to local press.

Basata Financial Holding, a JV between MTIE and BINV, and Jordan Kuwait Bank have completed the acquisition of a 27.1% stake in Madfaatcom, a Jordanian e-payments company, according to local press.

Egypt’s iron and steel exports declined 19% YoY to USD1.17 billion in the first seven months of 2024. The sector’s exports declined more than 40% in July alone to record USD134 million on lower volumes and global prices.