Pre-Trading Thoughts

Al Ahly Pharos

*Key news articles for today*
The Ministry of Finance reduced the allocations for the export burden rebate program in FY2024/25 budget to EGP23 billion, compared to EGP28 billion in the budget of the current fiscal year. The Chairman of the Export Council for Chemical Industries, said that this reduction will be offset by an acceleration in refunding companies’ export burdens, instead of the current delays.

Ministry of Finance delivered the FY2024/25 budget statement to the House. The document assumes economic growth will accelerate to 4.2% in the coming fiscal year, up from an estimated 2.9% in FY 2023/24. Headline inflation will average 17.9% down from a projected 35.7% this fiscal year, according to the document. Debt-to-GDP ratio seen falling to to 89.0% by the end of the current fiscal year, from 95.7% in the last fiscal year. The budget deficit seen rising to 7.3% of the country’s GDP in the next fiscal year, from 7.2% estimated in the budget for the current fiscal year.

The statistical statement of the economic bodies on the draft general budget revealed that the economic authorities in the transportation sector intend to borrow EGP119 billion from abroad in FY2024/25, estimated at USD2.6 billion, according to the draft budget. The sector is also expected to borrow EGP91 billion from domestic resources.

The Egyptian Electricity Holding Company set the price of the dollar in the budget for the next fiscal year 2024/25 at EGP49.55, compared to the price of EGP30.9 pounds in the budget for the current fiscal year.

The Shalatin Mineral Resources Company, affiliated to the Oil Ministry delivered shipments of gold to the CBE ranging between 200 and 220 kilograms during 1Q2024, with a value exceeding EGP400 million.

EGX-listed companies can buy or sell treasury shares on the open or secondary markets, under recent regulatory amendments issued by the FRA. The amendments aim to increase demand for treasury shares.

BINV BoD approved a decision to increase the company’s share capital ahead of its share swap agreement with Orascom Financial Holding (OFH). The company will issue some 58.3 mn shares at a value of EGP5 per share, raising its capital from EGP800 mn to around EGP1.09 bn.

SAUD has appointed Moataz Elkasaby as its chief operating officer.

DOMT will distribute cash dividends of EGP0.5/share, implying a dividend payout of 31% and a dividend yield of 4.4%. Record date is on 8 May 2024 and distribution date is on 13 May 2024.

The Egyptian government has contracted to purchase 500K tons of sugar, and this quantity is scheduled to arrive successively during the coming period.

We remind you that EGTS’s next court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is, if not further postponed, on 27 April 2024.

According to local media, the Madbouly government is looking to lease a re-gasification unit from Norwegian firm Höegh LNG, with the unit arriving by summer. The government is reportedly also in talks with BW Energy to lease a unit from the Norwegian-Singaporian company for a five-year period.

Israeli exports of natural gas to Egypt are set to rise 300 mn cf/d to 1.5 bn cf\d starting from 2H2025.