Pre-Trading Thoughts

Egyptian Stock Exchange board is discussing an action plan with market stakeholders to revitalize the market.

Minister of Finance said that the government will issue the first sovereign Sukuk before the end of the current fiscal year FY2021/22.

Minister of Planning expected that economic growth will exceed 5% during 3QFY2021/22, and the full-year growth to be close to 6%.

Eight international auto companies have stopped exporting cars to Egypt on the back of tight global car market and delays opening letters of credit (L/Cs).

Minister of Public Enterprise declared that the manufacturing of EV cars will take place in the factories of a private company instead of the public El Nasr company. 

Phillip Morris raised the selling prices of their "LM" brand by EGP1.00/pack to reach EGP34.00/pack, while keeping the prices of the other brands unchanged.

Egypt Education Platform (EEP) will acquire a majority stake in Montessori preschool chains Trillium and Petals. EEP is the JV established in 2018 by EFG Hermes and GEMS Education.

Saudi Arabia’s Mouwasat Medical Services has signed a non-binding MoU to acquire 100% of Al Marasem International Hospital (220 beds) in an all-cash transaction. The final value of the transaction will be set after the completion of due diligence.

Valu, HRHO’s consumer finance arm, announced signing an end-consumer financing protocol with Arab Organization for Industrialization and Zero Tech for security and safety systems. 

NBFS Market in 1Q22: Egyptian insurance companies have reported premiums worth EGP13.214 billion in 1Q22, +9.8% YoY. Micro-finance lending hit EGP30.695 billion at the end of 1Q22, +46.3% YoY. Financial leasing contracts increased by 32.4% YoY recording EGP21.769 billion while consumer finance transactions recorded EGP6.845 billion.

The total value of transactions through the recently launched Instant Payment Network reached EGP2.0 billion.

AMER reported 1Q22 results that were expectedly down from the high base in 1Q21 that had been supported by a EGP607.0 million securitization transaction, with 1Q22 net profit reaching EGP22.4 million, down 78.8% y/y.

Damietta Container and Cargo Handling Company, CSAG's 20% owned subsidiary, announced cooperation with AAS shipping line and Middle East Logistics and Consultant Group for handling the shipping line’s containers in Damietta Port.

Weekly Commodity Update

Brent, USD/bbl                                  114.0     2.6%

Diesel-HSFO Spread, USD/ton    464.0     -7.6%

Egypt Urea, USD/ton                      720.0     -15.3%

Polyethylene, USD/ton                                  1,510.0  0.0%

Polypropylene, USD/ton                               1,245.0  -2.0%

Turkish Rebar, USD/ton                                 755.0     -4.4%

Steel/Iron Ore Spreads, USD/ton              476.5     -9.0%

LME Aluminum Cash Price, USD/ton        2,935.0  4.7%

Egyptia Retail Cement, EGP/ton                 1,183.0  -3.4%

Steam Coal FOB, USD/ton                            417.3     3.7%

Crude Palm Oil, USD/MT                               1,494.2  -1.7%