Pre-Trading Thoughts

Al Ahly Pharos

The recently formed Entrepreneurship Ministerial Committee has announced ambitious plans to increase investments in Egypt’s startups tenfold to USD5 bn in the coming period, through easing market entry among other measures.

Industry Ministry revealed new information about the government’s plans to localize automotive feeder industries with a USD 360 mn joint tire-manufacturing project between the Arab Organization for Industrialization (AOI) and an unnamed Chinese company, set to be an entire tire manufacturing city in a freezone in Ain Sokhna.
Government arrears owed to Egypt’s pharma companies have climbed to EGP 50 bn, Federation of Egyptian Chambers of Commerce’s pharma division said.

Egypt is exploring the possibility of exporting electricity to Syria through its interconnection link with Jordan, Electricity Minister Mahmoud Esmat said.

MPs yesterday gave the greenlight to a EUR 1 bn macro-financial assistance package from the EU, which marks the first phase of a EUR5 bn set of concessional loans running through 2027 as part of a wider EUR7.4 bn package from the EU announced in March.

Egypt's PMI edged up for the second month in November, moving closer to the 50.0 mark that separates growth from contraction, recording 49.2 from 49.0 in October, the index was indicative of a marginal decline in business conditions.

The Ministry of Industry, in cooperation with the CBE, intends to launch a fund to support the productive sectors, especially the industrial sector.

The Prime Minister said that the government is working to expedite the payment of the remaining dues to the British company “BP”.

CNG Egypt New Energy Glass Company, a subsidiary of China Glass Holding Group, intends to pump investments worth USD300 million into the TEDA region - Egypt, in the industrial zone of Ain Sokhna.

The CBE sold USD 980.5 mn worth of one-year, USD-denominated t-bills yesterday, with an average yield of 4.50%, down 0.65 percentage points from the last time the same length bills were auctioned off in June

Today is the last day for retail investors to grab a piece of United Bank, with the retail offering set to wrap today, before trading kicks off on the EGX. The offering is already 23x oversubscribed as of yesterday, as retail investors jump one of only two IPOs to kick off this year, Amwal Al Ghad reports.

The government has approved a four-year plan starting next year to expand the production capacity of state-owned EGAL’s Nagaa Hammadi complex, with an eye toward fulfilling local demand and reducing imports of aluminum.

Ministry of Industry is studying reducing the value of steel billets new license to EGP3 million in order to facilitate acquiring the license.