Pre-Trading Thoughts

Al Ahly Pharos

The IMF will begin the fourth review of Egypt’s IMF loan program tomorrow. Three main areas will be subject to discussions during the review.

The IMF team will be discussing green financing through its Resilience and Sustainability Facility next week. The government applied for an additional USD1.2 bn in long-term, low-cost climate financing from the IMF's Resilience and Sustainability Facility back in August.

President El-Sisi said, during his meeting with the Director of the IMF Kristalina Georgieva, that the current priority is to ease the pressures and burdens on citizens and to contain inflationary pressures.

The government has reportedly hiked the prices of natural gas for households by EGP0.40-1 per cubic meter as part of wider plans to phase out fuel subsidies, according to press.

The CBE is reportedly allowing local banks to issue letters of credit for the import of non-essential goods, including cars, based on each lender’s USD reserves. The move is expected to help clear the backlog of non-essential import requests that have been piling up since 2022.

Ebda’s Nile Fund for Industrial Investment, and the Sovereign Fund of Egypt’s industrial sub-fund are reportedly exploring cooperation to set up new companies specialized in the local manufacture of imported production inputs.

The USD continued its rise against the EGP during the first day of the week, exchanging hands at up to EGP 49.10 and inching closer to its peak recorded during August.

The CBE will sell EUR600 million T-bills for one year today, Monday, that will replace another one-year T-bills that has matured and was worth EUR656.7 million with an average yield of 4%.

The National Tunnels Authority, affiliated to the Ministry of Transport, is expected to receive EUR500 million within days, from 4 international institutions contributing to financing the Abu Qir metro project in its first phase.

COMI (FV: EGP130.00, OW) recorded a strong set of results where 3Q24net profit post-minority interest only recorded EGP14,801 million (-5% q/q, +77% y/y), bringing 9M24 bottom line to EGP42,348 million (+89% y/y). The stock is trading at P/E 2025 of 4.0x and P/B 2025 of 1.3x.

MNT-Halan microfinance subsidiary Tasaheel Finance has issued EGP3.92 bn worth of securitized sustainability bonds.

Al Ahli Bank of Kuwait - Egypt achieved a 131% growth in profits during the first 9 months of 2024, recording EGP5.4 billion compared to EGP2.3 billion in profits during the same period last year.

GB Auto Rental, GBCO subsidiary, has obtained approval from Ministry of Transport to license the rental of transportation vehicles including buses, trucks, and industrial equipment.

According to local media, GBCO SME lender Kredit has secured EGP875 mn in credit financing from a syndicate of nine local and international banks.

Auto sales in September dropped 5% MoM to record 9.5k vehicles, down from 10K in August, according to figures AMIC.

According to local press, informed sources estimated the actual expected increase in mobile network service’ prices at about 15%. Sources expected authorities to implement the increase before the end of this year.

The Suez Canal Economic Zone intends to establish a pharmaceutical industrial zone on an area of ​​4 million square meters.

Alexandria Pharma will pay out a dividend of EGP30 per share on its FY 2023-2024 earnings, with the payment set to be made on 20 November.

OPEC+ has agreed to delay a planned December oil output increase by one month.

EGAS has launched a tender for the development of the Satis gas field in the North El Burg offshore concession after the BP-Adnoc JV abandoned the concession.

Egypt’s chemicals and fertilizers exports reached USD7 billion during 9M24, up from USD5.3 billion in 9M23.

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