Pre-Trading Thoughts

Al Ahly Pharos

Ministry of Finance raised the customs exchange rate to EGP18.64 from EGP17.00, starting June 1st.

State grain buyer GASC has purchased 465,000 tons of wheat for USD480/ton including freight.

Cabinet discussed several plans to raise institutional investor proportion and public institutional investors' participation in the Egyptian Equity Market.

Cabinet approved a number of amendments to the Egyptian Sovereign Fund regulations, enabling it to acquire “financial instruments, securities, and property transferred to and owned by the fund.

SCZone signed an MoU with H2 Industries to establish Egypt’s first waste-to-hydrogen plant in East Port Said, at USD4 billion.

Assistant Minister of Planning expected the government to postpone the second phase of the Decent Life initiative from 4 to 5 months.

National Bank of Egypt raised the interest rates on 5-years CDs to 12.25%.

CBE revealed that digital banks will be divided into two categories, with a capital of USD2 billion or USD4 billion.

FRA gives ADIB Egypt the green light to increase its paid-in capital by EGP 2.0 billion.

A new automotive policy committee was approved to set a policy framework for legislative and administrative reforms in the industry.

OLFI management decided to raise selling prices starting the 4th of June by EGP0.5-2.0/pack across nearly all its products.

Kima BoD decided to end the disputes with Technimont amicably after regulatory approvals and to extend the maintenance contract for the plant till June 25th.

ATLC has announced securitizing a portion of its portfolio amounting to EGP1,629 million.

Weekly Commodity Update

Brent, USD/bbl 120.1 5.9%

Diesel-HSFO Spread, USD/ton 588.7 10.6%

Egypt Urea, USD/ton 720.0 0.0%

Polyethylene, USD/ton 1,450.0 -2.7%

Polypropylene, USD/ton 1,195.0 -4.0%

Steel/Iron Ore Spreads, USD/ton 483.4 1.0%

LME Aluminum Cash Price, USD/ton 2,844.0 -3.0%

Egyptian Retail Cement, EGP/ton 1,180.0 -3.7%

Steam Coal, USD/ton 399.0 -4.1%