Pre-Trading Thoughts

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 investment. Our top picks for the sector are: ADIB (FV: EGP80.00, OW) and COMI (FV: EGP130.00, OW)

The Madbouly government has reportedly asked the International Monetary Fund for an extension on the timeline for the implementation of economic reforms that were agreed upon as part of our loan program, an anonymous government official told CNN Business Arabic.

The government is currently studying offers from local and foreign investors to build hospitals on ten plots of land across the country.

The Planning Ministry is set to launch a national multidimensional poverty index without providing a timeline.

A number of land freight service providers raised shipping rates by 20% over the weekend in line with the recent fuel price hike. 

The Ministry of Investment and Foreign Trade is considering postponing the implementation of a 15% increase in the usufruct fee collected from free zone companies for a year starting from January 2025.

The government is looking to increase the contribution rates of free zone projects to Egypt's total exports by no less than 40% during the coming year.

The government is planning to establish a cargo city, dubbed Cairo Cargo City, that will double the volume of goods transported.

The heads of Brics nations, including President Abdel Fattah El Sisi, are in the Russian city of Kazan for the three-day Brics Summit to discuss economic cooperation, trade, and global governance.

HELI Board approved a EGP667.5 million capital increase through the distribution of 2:1 stock dividends.

ESRS submitted to EGX the documents needed to decrease its issued and paid-in capital by EGP4.55 million to reach EGP2.711 billion through cancelling 0.91 million treasury shares at a par value of EGP5/share. 

Raya Distribution, a subsidiary of RAYA, inked a partnership agreement with Italian appliance company De'Longhi Group, the owner of the De'Longhi, Kenwood, and Braun brands, to become the exclusive agent and official distributor for Kenwood’s built-in kitchen appliances in Egypt.

Raya Food’s parent company, RAYA, will direct USD20 mn of Helios Investment Partners’ USD40 mn bid for 49% of the subsidiary towards building a second factory partly dedicated to freeze-dried fruits and vegetables.

ORWE has denied in an EGX release having any potential acquisition offer for its shares at the current time.

The cabinet released a statement denying the existence of any car import quotas set by the government. This came in response to media reports claiming that the government plans to reduce the monthly car import quota from 10K to 8K units.

BTFH subsidiary Beltone Leasing and Factoring has closed its first securitized bond issuance, raising some EGP1.3 billion. T

Beltone Financial Holding and Italy’s CRIF Ratings were chosen by the Financial Regulatory Authority to set up the country’s second credit rating agency. 

SUGR’s Chairman and Managing Director Ahmed Abdel Hafez submitted his resignation.

US oil producer Apache plans to increase its daily natural gas production 11% to 500 million cf and invest some USD1.3 billion on its production of crude oil, through its JV with EGPC Khalda Petroleum, during the current fiscal year. 

Chemical Industries Holding Company (CIHC) is reportedly looking to appoint an investment bank to manage the listing of Sinai Manganese, Al Borsa reports.