Welcome to our daily podcast featuring the day's top news commentary and technical recommendations delivered to you before the opening bells of the Egyptian Stock Exchange (EGX).Alongside our morning podcasts, we will be publishing a collection of episodes presenting indepth analysis and insights on EGX's equities, all brought to you by Al Ahly Pharos.
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The IMF’s Managing Director Kristalina Georgieva will be in Egypt next week to discuss our USD 8 bn loan program, Prime Minister Moustafa Madbouly said. A delegation from the Fund will arrive directly following her visit in preparation for the program’s fourth review, Madbouly added. The government will be taking another look at its plan to sell of…
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Market Overview Prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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Prime Minister delivered a speech during the opening session of the Future Investment Initiative (FII) conference in Riyadh. The speech was about Egypt’s approach to securing sustainable and inclusive development, with a particular focus on empowering the private sector and further developing our energy sector, transport and infrastructure networks…
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Market Overview ESRS EAST CLHO prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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Finance Minister Ahmed Kouchouk said that while in Washington for the IMF and World Bank’s annual meetings he had expressed the government’s expectation that it would have “positive and constructive discussions” with the Fund during the fourth review of our loan program. The review, which if successfully passed will unlock USD 1.3 bn in funds, had …
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Market Overview COMI TMGH ESRS CIEB prepared by : Mayada Amin - CETA, CFTeAl Ahly Pharos
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Egypt is preparing three possible revisions to the loan agreement to present to the IMF delegation when they land in Egypt mid-next week. The first scenario proposes extending the loan program by two years so Egypt ends up having five years to implement the reforms and unlock the entire USD8 billion in funding. The second scenario would give the go…
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Market Overview ALCN BINV EXPA EKHOA prepared by: Mayada Amin - CETA. CFTeAl Ahly Pharos
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In contrast to the IMF’s talk of being open to changing some of the terms of the loan agreement, Georgieva reiterated that “Egypt is better served by undertaking reforms sooner rather than later.” IMF Director Kristalina Georgieva stated that the Fund’s amendment to the basic and additional fees for programs and loans will save Egypt USD800 million…
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Market Overview BINV TMGH CCAP ORWE prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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The Prime Minister confirmed that the government is currently reviewing the timeline and reforms put forward by the Fund, pointing to the direct impact that the war on Gaza and the subsequent decline in Suez Canal revenues has had on state revenues as justification for the review. The Prime Minister said that the foreign exchange flows and the stat…
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Market Overview TMGH MFPC BINV Prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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The IMF has kept our growth forecast for the current fiscal year unchanged at 4.1% in its updated World Economic Outlook. President Sisi met his Russian counterpart Vladimir Putin on the sidelines of the Brics Summit, which kicked off in Kazan yesterday. The conversation centered around Egypt’s role in the bloc, bilateral relationship, and regional…
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Market overview BINV CIEB EPCO MFPC EMFD Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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Pitch: Egypt Banking Sector| Rerating Is a Must The Egyptian banking sector is poised for remarkable performance as we approach the release of third-quarter results for 2024. The combination of anticipated extraordinary results amid high interest rates and the compelling valuation metrics makes the Egyptian banking sector a prime candidate for inve…
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Market Overview SWDY TMGH GBCO JUFO BINV Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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President Abdel Fattah El Sisi pointed to the economic pressures the nation is enduring as the country undergoes reforms as part of its loan agreement with the IMF. “If this challenge forces me to place unbearable pressure on the public, we must review the situation with the IMF,” El Sisi said. Finance ministers, central bank governors, and other b…
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Market Overview prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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In line with our expectation, the MPC decided to keep the CBE’s overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged. The Ministry of Petroleum and Mineral Resources announced on Friday the third fuel price increase in 2024. However, prices of Mazut supplied to power plants and food industries have been kept …
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Market Overview ORWE EKHO ADIB CSAG prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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We published today our earnings expectations sheet for companies under coverage in 3Q24/FY24/FY25: 1) In 3Q24, aggregated net profit is expected to increase 49% YoY and decrease 14% QoQ, 2) Aggregated net profit is expected to increase 53% YoY in FY24 and 15% YoY in FY25, 3) Stocks that are expected to witness a shift from net loss to net profit Yo…
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ABUK ALCN TMGH ORAS EFID prepared by: Mayada Amin - CETA, CFTeAl Ahly Pharos
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The government will soon announce “important news” regarding the privatization of a number of banks and airports, Prime Minister Moustafa Madbouly said. Egypt’s external debt sat at USD152.9 bn during the end of FY2023/24, falling some USD15.1 bn (almost 9%). Egypt's import bill for petroleum products reached USD10.5 billion during 9M2024, compared…
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Market Overview ABUK ALCN CIEB TMGH prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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The Financial Regulatory Authority has suspended issuing new licenses for companies seeking to operate in consumer finance or microfinance for one year. Egypt is looking to boost its natural gas production by 30% to 6 bn cubic feet of gas per day by the end of 2025. Kuwait is reportedly mulling converting its deposits in the CBE - USD4 billion - in…
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Market Overview prepared by: Mayada Amin -CETA, CFTeAl Ahly Pharos
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President Abdel Fattah El Sisi yesterday inaugurated the country’s newest and largest railway station, Giza’s Bashteel Station. The CBE’s MPC is scheduled to meet on Thursday, 17 October. We expect the CBE to prefer to hold rates unchanged in its upcoming meeting. The Suez Canal Authority has rolled out fresh incentives and facilities for yachts pa…
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Market Overview Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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Annual urban inflation slightly accelerated, registering 26.4% YoY in September, up from 26.2% in August. Finance Minister Ahmed Kouchouk unveiled the first phase of a package of tax facilities aimed at simplifying the tax system and easing the burden on taxpayers The revamped export subsidy program aims to enhance transparency by clearly reflectin…
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Market Overview CLHO ETEL BTFH ALCN ORAS prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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*Key news articles for today* The government will announce a fresh package of tax facilities and investment incentives later today. Finance Minister said that he expects to see the facilities implemented before the end of the year. Minister of Transportation and Industry Kamel El Wazir said that president El Sisi ratified a decree to launch an init…
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The House of Representatives preliminary approved government-drafted amendments to the law regulating how the Sovereign Fund of Egypt (SFE) operates. The MPs approved a presidential decree approving increasing our subscription to the IMF by 50% — which will be worth some USD1.4 bn and EGP48 bn. The MPs also approved a USD15 mn USAID grant to help u…
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Market Overview FAIT JUFO EAST CLHO prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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Ras El Hekma is reportedly expected to reach total investments worth USD110 billion by 2045, with a yearly GDP contribution of USD25 billion, and create around 750k direct and indirect jobs. Egypt’s GDP growth rate was 2.4% in the fourth quarter of the 2023/24 year, bringing the annual growth rate to 2.4%, down from 3.8% a year earlier. Net Interna…
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Market Overview OCDI JUFO FAIT EFID SAUD prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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Net foreign asset (NFA) surplus fell 27% to USD9.7 bn in August, down from USD13.3 bn in July. NFA of banks registered a deficit of USD536 mn, down from a surplus of USD2.8 bn in July. Egypt's PMI registered 48.8 in September, the headline index was below the 50.0 no-change value to indicate a modest decline in business conditions at non-oil privat…
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Emirati sovereign wealth fund ADQ will lay the foundation stone for its USD multi-billion Ras El Hekma project on Friday, Deputy Housing Minister said. The Madbouly government will start introducing cash-based subsidies on a trial basis in certain areas of the country starting next fiscal year, Supply Minister said. Intro Group subsidiary Intro Tec…
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Ongoing geopolitical tension in the region has had a dire impact on Suez Canal revenues, which have seen a 50-60% drop — equivalent to USD6 billion — over the past 7-8 months, President El Sisi said. The government is currently in talks with foreign partners over a new set of incentives for the oil and gas industry that aim to boost oil and gas pro…
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Market Overview HRHO JUFO TMGH ABUK ALCN prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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Egypt's total public debt declined by about 2.1% during the last quarter of FY23/24 to EGP12.52 trillion. The European Bank for Reconstruction and Development (EBRD) raised Egypt’s growth forecast for 2025 to 4.5% from 4.4%. The Central Bank of Egypt intends to launch a version for commercial transactions via InstaPay for transactions between indiv…
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Prime Minister Madbouly said he is coordinating with Investment and Trade Minister Hassan El Khatib over a new package that would encourage and incentivize both new and current investors to inject more investments into various sectors. Prime Minister Madbouly said he is working with Finance Minister Ahmed Kouchouk to finalize the tax reform announc…
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Market Overview BINV EMFD TMGH GBCO HELI Prepared by: Mayada Amin- CETA, CFTeAl Ahly Pharos
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*Key news articles for today* The government will invest EGP1.0 bn to launch 1k hotel rooms in between the Al Farma archaeological site to the west of the Suez Canal. The initiative, which is expected to be invested in the last quarter of the year. The Ministry of Finance announced the launch of an integrated tax system that aims to support medium,…
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