Pre-Trading Thoughts

Al Ahly Pharos

Annual urban inflation rose to record 13.6% in July compared to 13.2% in June. On a monthly basis, inflation rose by 1.3% in July, from 0.1% in June, according to CAPMAS.

Egypt will begin cutting back on electricity consumption nationwide from next week in a bid to redirect more natural gas towards exports.

Ministry of Electricity achieves a monthly surplus of USD100- 150 million since October 2021 thanks to using the fuel oil (mazut) in electricity stations as a substitute for natural gas.

Residential electricity bills will rise on 1 January, 2023, cabinet spokesperson said.

Tehran is expected to boost oil exports in the tight market after the latest progress in talks to revive the 2015 Iran nuclear accord. Brent Crude prices shall move downwards as a result.

Local media is reporting that Saudi Arabia’s sovereign wealth fund is about to acquire a 25% state-owned stake in MFPC.

Local media is reporting that Saudi Investment Fund (PIF) plans to acquire shares in Abu Qir Fertilizers, and EFinance.

EKHO BoD schedules to convene on the 14th of August 2022 to discuss 2Q22 results. We estimate a top-line figure of USD314 million and a net profit of USD75 million for 2Q22.

Pachin’s BoD will meet today to discuss the non-binding offer from Sipes to acquire between 60% and 100% of the company at EGP17.50- 18.00 /share.

Egytec, a subsidiary of SWDY, won a tender for the supply and installation of 66 kV electrical cables with a value exceeding EGP185 million.

The commodity exchange will start operations in 1Q23, and is scheduled to sign contracts for the first phase of strategic store warehouses with ORAS, and Hassan Allam. Warehouses will cost of about EGP3 billion per warehouse.

Garhy Steel raised rebars price by EGP250 per ton effective August 9, 2022.

Finance Minister gave a decision to specify EGP0.40 per every 20 sold cigarettes while collecting the VAT to be granted to the General Authority for Health Insurance. Not clear if manufactures will raise prices.

MNHD achieved strong 2Q22 sales of EGP1.8 billion, up 122.8% y/y and 14.0% q/q, bringing 1H22 sales to EGP3.3 billion, up 117.3% y/y, supported by the launch of Taj Ville in Taj City. 2Q22 net profit of EGP110.8 million, down 2.9% y/y and 7.9% q/q.

El Nasr Automotive's general assembly approved their merger with Engineering Automotive Manufacturing Company into one entity to manufacture a variety of electric vehicles including sedans, microbuses, and Tuktuk replacement.

Companies in the Go Green initiative are intending on shrinking the cars volume dedicated to the initiative amidst the current uncertainties.

The government is looking between two scenarios regarding seaports, whether to merge the 7 ports under one holding company or establish two holding companies.

EFG Hermes’ leasing and factoring arm has signed an EGP 750 mn sale and leaseback agreement with real estate developer Marakez.