Pre-Trading Thoughts

Al Ahly Pharos

The government reviewed the performance of the FY2021/22 budget. Primary surplus recorded 1.3%, while the overall deficit recorded 6.1% down from the 6.8% in FY2020/21.

The Suez Canal recorded its highest ever annual revenues in FY2021/22, recording USD7 billion, up from USD5.8 billion in the previous fiscal year.

Egypt's exports increased during 1Q2022 by 44.3% to reach USD14 billion. However, the non-oil trade deficit increased by 23% to USD12.1 billion during the comparison period, as imports increased by 16.2% YoY to reach USD21.5 billion.

The fuel pricing committee is expected to meet in the upcoming period to decide on the fuel prices for 3Q2022.

Egypt's state grains buyer GASC is in private negotiations with trading houses about buying wheat without issuing an international tender.

Taxpayers who are in arrears to the government will catch a bit of a break this year after representatives approved amendments that will reduce late payment fees due before 31 August by 65%.

Egypt is considering applying a barter system temporarily with Russia, so that a number of main Russian goods are made available to Egypt, in exchange for exporting corresponding products, to overcome the obstacles related to the Russian-Ukrainian war.

The EGX30 hit its lowest level since November 2016 yesterday given concerns over global inflation, rising interest rates, and a possible recession in the US.

SWDY plans to invest EGP2.5 billion during the remainder of this year, to finance its expansion plan locally and globally.

Suez Cement is set to launch Egypt’s first waste heat recovery facility in its Helwan cement plant in 2023.

Cement companies have submitted requests to the Egyptian Competition Authority to extend the initiative to reduce cement companies’ production, which ends on July 15.

Ministry of Trade and Industry requested car agents to gather the car quantities planned to be imported in the upcoming period to be studied as an introduction to implementing a new quota system.

AUTO began construction of a new factory in Sadat City with annual capacity of 50 thousand cars annually.

Forsa for Consumer Finance, one of Drive’s subsidiaries, is negotiating with five banks to get credit facilities worth of EGP1 billion.

A court ruled in favor of EGTS regarding its right to receivables of USD0.7 million from a shareholder.

PHDC general assembly approved an EGP80.0 million financial lease contract with ICLE and approved cancelling PHDC’s ESOP (39.0 million shares).

ELSH declared 0.25:1 stock dividends. Record date is 20 July 2022. Distribution date is 21 July 2022.

CCAP’s Taqa Arabia and Abu Soma Tourism Development Company agreed to establish a solar-powered seawater desalination plant in Somabay.

Production at the Iqat gold mine could begin in 4Q2022.

Saudi dairy company Almarai is not considering acquiring a majority stake in POUL as part of its expansion plans in Egypt, according to media sources.

HRHO declared bonus shares of 0.20 share for every original share held. Record date is on 18 July 2022 and distribution date is on 19 July 2022.

Banque Misr obtained the Somali Central Bank’s license to operate in the country.

Former SPMD CEO exited his stake in the company (12.55%, 139.2 million shares) at an average price of EGP0.446 per share, implying a transaction value of EGP62.09 million.

The Chinese mobile manufacturer Vigo is planning to establish an assembling factory in 10th of Ramadan City.

Saudi budget carrier Flynas is launching its first direct flight between Cairo and the Saudi city of Al Ula in October 2022.

Weekly Commodities Update:

| Last Price | WoW Change, %
Brent, USD/bbl | 112.3 | -2.5%
Diesel-HSFO Spread, USD/ton | 691.9 | -6.1%
Egypt Urea, USD/ton | 740.0 | 0.0%
Polyethylene, USD/ton | 1,390.0 | 0.0%
Polypropylene, USD/ton | 1,185.0 | 0.0%