Episode Details

The USD35 billion Emirati investment in Egypt is an important step, but it is not linked to the Fund’s discussions with Egypt. These two topics are completely separate, the IMF’s Middle East and Central Asia head said.

Egypt needs to ramp up private sector activity, rationalize spending, and maintain restrictive monetary policy to help boost economic growth, the Organization for Economic Co-operation and Development (OECD) said.

The OECD sees economic growth falling to 3.2% in the current fiscal year — from 3.8% in the last fiscal year — as inflation continues to drive down consumption. Growth is set to pick up to hit 4.4% in FY2024-25. 

There could be a decline in the prices of essential commodities before Ramadan, as the release of goods that had been stuck at customs brings down prices, Federation of Chambers of Commerce Secretary-General said.

The House of Representatives gave the final approval yesterday to amendments that will raise the issuance fee of passports to EGP1k from EGP250. 

The House approved a EUR500 million grant from the European Investment Bank to support the Environment Ministry’s Sustainable Green Industry project, and an EUR80 million grant from Germany to fund the Environment Ministry's solid waste management program, help create 25 technological schools and centers, and support the Central Bank of Egypt’s financial risk management program.

The Commodity Exchange has stopped offering and trading the three most prominent strategic commodities: wheat, corn, and sugar about two months ago. The Minister of Supply attributed the reason for the halt to speculation and exaggerated prices for the wheat commodity, which will be offered again when prices stabilize.

EKHO released 4Q23 consolidated financial results. Net profit increased 25% YoY (+18% QoQ) to USD42.62 million in 4Q23. FY23 net profit declined 30% YoY to USD179.18 million. EKHO is currently trading at a 2024e PE of 5.1x and EV/EBITDA of 2.6x. 

According to local press press, the National Bank of Egypt and Banque Misr target selling part or all of their stake of 26% in AMOC.

EXPA (FV: EGP42.00, OW) 4Q23 consolidated bottom line recorded a strong EGP1.1 billion post minority interest (+227% y/y, +7% q/q), bringing FY23 bottom line post minority to EGP3.375 billion (+156% y/y). We raise our FV from EGP32.00/share to EGP42.00/share and maintain our Overweight recommendation on strong financial performance exceeding our expectations. EXPA is currently trading at 1.1x P/B24 and 5.5x P/E24, on RoAE of 22%.

ELSEWEDY ELECTRIC for Electrical Products (EEEP), a subsidiary of SWDY (FV: EGP34.96, OW), targets an increase in oil transformers' exports to USD150 million in 2024 up from USD120 million recorded in 2023.

According to local press, Saudi Egyptian Industrial Investment (SEII) plans to invest USD5 million in a new pharma production line, which should kick off operations early next year.

Weekly Commodities Update

 |   | Last Price | WoW Change, %
| Brent, USD/bbl | 81.6 | -2.2%
| Diesel-HSFO Spread, USD/ton | 405 | -5.5%
| Egypt Urea, USD/ton | 406 | -1.0%
| Polyethylene, USD/ton | 1,060 | 0.0%
| Polypropylene, USD/ton | 960 | 0.5%
| Steel/Iron Ore Spreads, USD/ton | 387 | 1.0%
| LME Aluminum Cash Price, USD/ton | 2,138 | -2.8%
| Egyptian Retail Cement, EGP/ton | 2,099 | -1.5%
| Steam Coal FOB Newcastle Australia, USD/ton | 119 | 0.1%
| SMP, USD/MT | 2,788 | 1.1%
| Last price may vary week over week in some indices due to time difference