Pre-Trading Thoughts

Al Ahly Pharos

CAPMAS is expected to publish inflation readings for April on Thursday, 9 May. We expect annual urban inflation to record c.32%, lower than 33.34% in March, mainly on a relative calm in some food items.

Net foreign reserves increased by USD696 million from the month before to USD41.1 billion at the end of April, reaching their highest level in more than four years.

The EGX’s long-awaited sharia-compliant index is to launch before the end of June.

Egypt's headline PMI registered in April 47.4. This was down from March's 47.6 and the second-lowest reading in the past year.

Suez Canal revenues registered USD330.3 million in April 2024, lower by USD575.1 million YoY.

Egypt intends to pay USD845.3 million to the IMF during current May, divided into six tranches.

The Egyptian Stock Exchange is preparing to receive three new offerings on the main market during the current year, out of six expected to be implemented.

The Minister of Justice, revealed a decision from the Real Estate Registry Authority stipulating that when registering the ownership of any contract for foreigners, proof of the transfer of the value of the housing unit from abroad to the banking system must be submitted.

The government is working to amend the economic zones law in a bid to make domestic economic zones more attractive in the face of international competition.

Foreign energy companies’ arrears owed by the electricity sector in Egypt reached USD450 million as of the end of last March, sources said.

SEIC signed a conditional agreement with Social Impact Capital (SIC) to indirectly acquire CIRA’s free float shares through capital increase in SIC. SIC will use the cash injection to launch a mandatory tender offer to buy CIRA shares at price of EGP14.00/share.

CCAP released 4Q23 results. CCAP reported a consolidated net profit of EGP4.8 billion in 4Q23, a 1071% YoY growth (+134% QoQ). 2023 net profit grew 419% YoY to EGP6.5 billion. The company is currently trading at a 2024f PE of 5.3x and EV/EBITDA of 2.5x.

Qalaa Holding Restructuring I Ltd. (QHRI), an SPV by Ahmed Heikal, Hisham El Khazindar and Karim Sadek, who collectively own 23.487% of CCAP, is offering to buy the outstanding debt from the lenders of CCAP (total amount equal to USD325 million). The total amount of debt to be settled (which has been accepted by some of the lenders) amounts to USD231 million.

Egypt is planning to ramp up natural gas production 8% YoY next fiscal year to an average of 5.7 billion cubic feet a day.

Assiut National Oil Processing Company (ANOPC) targets operating five units in its hydrogen cracking complex by 2H25 with investments worth USD3.1 billion.

FWRY is holding preliminary talks with six Saudi companies over a potential partnership. The company also held talks with companies in the UAE and Kuwait, according to local press.