Pre-Trading Thoughts

Al Ahly Pharos

Remittances from Egyptians abroad surged 43.8% YoY in April to USD2.2 billion. On a monthly basis, remittances increased for the second consecutive month, rising 2.6%.

A number of government officials are reportedly in London today to gauge foreign appetite for fresh debt issuances, including the possibility of a eurobond issuance.

The Ministry of Petroleum will launch an international tender to import about 15 shipments of liquefied gas until next October to meet the country’s fuel needs.

The Supply Ministry is now looking to import some 5 million tons of wheat this year, down from its initial target of 6 million tons, as it works to up its purchases of local wheat.

The Finance Ministry will begin disbursing the first batch of export subsidies under the seventh phase of the program today. Some 360 exporters will start receiving some EGP10 billion in export subsidies during this phase. The second and third batches are scheduled for 27 June and 8 August.

The General Administration of Cost and Pricing at the Egyptian Electricity Utility Regulatory Authority will finish within days the proposals and scenarios for determining electricity prices that are to be implemented as of next July.

The Head of the Sugar and Integrated Industries Company said that the fair price of sugar on the ration card is EGP24 per kilo, after the rise in production costs.

Pressure fluctuations in the natural gas pipeline network have forced several companies in the fertilizer and petrochemical sector to suspend production until the gas flow stabilizes. MFPC, ABUK, and EKHO's AlexFert said they are putting production on hold for an initial 24 hours, while SKPC and EGCH said they are suspending production until the pressure levels stabilize. On the other hand, EFIC announced that it will not be affected by the cut as it does not use natural gas as a main raw material. However, the Oil and Electricity Ministries said they would gradually increase gas supplies to fertilizer companies starting today.

MBSC posted its unaudited financial results for 1Q24 with net profit dropping to EGP41.5 million (-32% YoY, -67% QoQ) primarily on tight margins due to the company’s high dependency on imported coal as its main source of energy to operate its facility. MBSC is trading at FY24e PE of 7.7x and EV/EBITDA of 5.6x.

Rosetta for Energy Solutions, a subsidiary of TAQA Arabia signed a MoU with Elsewedy Industrial Development, a subsidiary of SWDY to supply natural gas to Elsewedy Industrial City (EIC) in Tanzania via a first-of-its-kind innovative LNG Virtual Pipeline.

Egypt's total iron and steel exports dropped 21% YoY to USD600 million in the first 4-months of 2024.

EAST has addressed some property and liability insurance companies operating in the Egyptian market to present its technical and financial offers to insure the company’s assets, including the company’s buildings, facilities, and liabilities, with total amounts amounting to EGP65 billion.

A number of Egyptian banks doubled the limits of the use of credit cards in Saudi riyals, whether for purchases or cash withdrawal, in tandem with the approach of the Hajj season.

SFE is conducting a restructuring process for Misr Life Insurance Company at the moment, by separating real estate activity, in preparation for selling a share of it to one of the strategic investors during the coming period.