Episode Details

Where Is EGX Heading in 2024? Which Stocks Offer Best Value Post 2023 Rerating?

We believe that the market will continue to advance as long as foreign currency availability and the local exchange rate weakness continues to linger, thus driving earnings momentum.

Our report also includes an appendix of all data tables for your reference.

What if the electricity tariff increase is confirmed for industrial usage?

Electricity tariff for energy-intensive industries reportedly increased to EGP1.32 per kWh up from the previous rate of EGP1.10 per kWh. The still-not-confirmed price increase would drag related companies operating margins down and ultimately fair values if not balanced by sufficient price increases of their final products. We ran a scenario analysis for the reported electricity tariff increase into our models, given all other assumptions constant, to capture the effect on our fair values for the stocks. 

The CBE earlier released the balance of payments data for 1QFY2023/24. 

• The overall BoP recorded a surplus of USD229 million in 1QFY2023/24, compared to a surplus of USD524 million a year before.
• Current Account (CA) deficit shrank in 1QFY2023/24 to USD2.8 billion compared to USD3.2 billion a drop of 12% YoY, mainly due to a 13% drop in trade deficit to USD7.9 billion from USD9.1 billion in 1QFY2022/23.
• Egypt’s Ministry of Electricity announced an increase in electricity prices for both residential and commercial use, ranging from 7% to 20% across various usage categories.

The IDSC issued a document explaining the strategic directions for the Egyptian economy for the new presidential term (2024-2030). 

Egypt’s Ministry of Transport raised ticket prices for the three-line Cairo Metro.

Net International Reserves reached USD35.22 million at the end of December 2023, up from USD35.17 billion in November, on higher value of gold.

Egypt's PMI posted 48.5 in December, marginally higher than the reading of 48.4 in November.  

Egypt’s wheat imports increased by over 14.5% to 11 million tons in 2023 compared to 9.6 million tons in 2022, Deputy Minister of Supply said.

AD Ports inked a USD3 million initial agreement with the Red Sea Port Authority to operate and manage three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh.

An Emirati-led consortium has been awarded the bid to develop the former HQ of the now-defunct National Democratic Party in Tahrir Square, Sovereign Fund of Egypt (SFE) head said.

Russian EV manufacturer Concordia is setting up an electric vehicle components factory in GV Investments’ Tarboul industrial project in Giza.

The government is preparing to amend the fees for using the national natural gas network for 2024, in preparation for implementing the new tariff during the current year. 

Around EGP11 billion have been invested in the newly introduced CDs (with yields up to 27%) during the first 24 hours of issuance on Friday. 

The Oman Investment Authority is in negotiations with the government regarding the acquisition of a majority stake in EXPA after it was included in the government IPO program at the end of 2023. 

The FRA is studying 5 applications to establish small, medium, and micro enterprise financing companies. 

LCSW (FV: EGP23.33, OW) will distribute its 3,200,000 treasury shares as bonus shares to shareholders (0.042 share for each original share held). Record date is 10 January 2024, and distribution date is 11 January 2024.