Pre-Trading Thoughts

Al Ahly Pharos

The CBE hiked rates by 200 basis points, in line with our expectations.

Fitch Ratings expected that the net foreign assets of Egyptian banks will continue to recover after the depreciation of the pound, and high interest rates will support the profitability of banks.

The European Central Bank may raise interest rates in July to tackle inflation, despite rising concerns about a recession in the eurozone.

Finance Ministry is projecting tourism revenues to reach USD 10-12 bn in the current fiscal year (2x YoY), and remittances to rise to USD 32.5 bn (+3.5% YoY).

ORAS reported 1Q22 financial results with attributable net income dipping to USD13 million (-45% YoY, -65% YoY). Excluding the contribution from BESIX, the Group would have reported net income attributable to shareholders of USD24.1 million in 1Q 2022 (-5% YoY, -9% QoQ). BoD proposed a DPS of USD 0.2313 (DY5.5%).

The government is studying new incentives to cement producers to maintain prices and incentivize exports.

The "Concrete Plus - Act Financial" consortium is close to acquiring a 5% stake of an industrial company listed on the Egyptian Stock Exchange. (Al Shorouk)

AUTO 1Q22 net income recorded EGP229 mn (-23.2% YoY, -51.4% QoQ), brought down sharply by FX losses of EGP211.2 mn. Excluding the FX losses from the bottom line, net income would have recorded EGP441 mn (+47.4% YoY, -6.7% QoQ).

Bank Misr is currently studying lending EGP500 mn to AUTO's MNT-Halan to finance their operations.

MNHD achieved a 110.6% y/y increase in 1Q22 gross contracted sales to EGP1.6 billion. Net profit in 1Q22 increased 5.1% y/y and 266.9% q/q to EGP120.3 million.

HELI and Mountain View contracts are expected to be signed in around two months.

ACAMD is postponing its decision on the Zefta co-development offer from RAMO until it decides on the co-development offer from El Rawasy.

PRDC subsidiary, Rooya, completed scheduling its debt of EGP3.7 billion.

FWRY Insurance Brokerage aims to reach EGP38 mn of premiums by the end of the current year 2022, + 52% YoY.

EXPA is receiving USD 25 mn financing package from EBRD for on-lending to female-led SMEs.