Pre-Trading Thoughts

Al Ahly Pharos

The Central Bank of Egypt is auctioning off USD980 million worth of one-year t-bills.

The government is reportedly looking to issue new legislation and incentives to make units offered in the New Administrative Capital’s central business district more attractive to foreign investors.

The government will soon announce the new licensing requirements for private sector-run freezones.

Expats have transferred some USD767 million to the government under its car-for-FX scheme.

The IMF report on the first and second reviews of the EFF with Egypt revealed high estimates of fuel subsidies during the current and next fiscal years.

Egypt’s chemical exports recorded USD456 million in March 2024 compared to USD696 million in March 2023.

The Tourism and Finance Ministries agreed to launch a program offering subsidized loans at a 12% interest rate to local and foreign hospitality players looking to set up more hotel rooms in Egypt. ORHD (FV: EGP26.26, OW) and TMGH (FV: EGP73.80, OW) are potential beneficiaries.

OCDI reported 1Q24 net profit of EGP390.1 million, up 108.3% y/y and down 52.7% q/q.

EGTS reported FY23 net loss of EGP112.6 million, compared to FY22 net profit of EGP67.5 million.

ZMID AGM approved 1) the distribution of EGP0.15/share cash dividends (DY of 2.3%) over two tranches and 2) the distribution of 0.89:1 stock dividends.

CIRA released positive 1H23/24 results. Net income grew by 30.6% YoY to record EGP288 million.

OIH released FY23 results, where it recorded a net loss of EGP161 million compared to a net profit of EGP522 million. OIH is currently trading at P/E24 of 12.3x and P/B24 of 0.7x.

Egypt has moved one step higher in the financing sustainability ranking published by the IFC-backed Sustainable Banking and Finance Network (SBFN).

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 89.5 | 2.5%
| Diesel-HSFO Spread, USD/ton | 309 | 2.9%
| Egypt Urea, USD/ton | 302 | -7.9%
| Polyethylene, USD/ton | 1,030 | 0.0%
| Polypropylene, USD/ton | 975 | 0.0%
| Steel/Iron Ore Spreads, USD/ton | 388 | 1.0%
| LME Aluminum Cash Price, USD/ton | 2,540 | -4.5%
| Egyptian Retail Cement, EGP/ton | 2,089 | -0.2%
| Steam Coal FOB Newcastle Australia, USD/ton | 130 | -0.7%
| SMP, USD/MT | 2,541 | 0.0%
| Last price may vary week over week in some indices due to time difference