Pre-Trading Thoughts

Al Ahly Pharos

The Federal Reserve held interest rates steady at their current range of 5.25% to 5.5%, and revised its outlook for rate cuts to just one in 2024.

The CBE revealed that the balance of foreign investments in Egyptian treasury bills in March, surged to USD32.5 billion, up from about USD13.7 billion in February.

Chinese shipping and logistics group Cosco Shipping will invest USD375 mn this year to increase its container capacity at various Egyptian ports.

AD Ports will develop, operate, and manage three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh that will launch in 2025, after inking a concession agreement with the Red Sea Port Authority that will see AD Ports invest USD4.7 mn over 15 years.

EBRD is mulling over extending a USD71.7 mn senior loan to finance a 200 MW wind farm in Ras Ghareb, developed and operated by the UAE’s Masdar and Infinity Power.

Egypt joins Pakistan, Nigeria, and Kenya as one of the once-unloved emerging markets that “lured” investors back into their local debt instruments with higher interest rates and liberalized exchange rates, the Financial Times writes. Egypt saw investors pour some USD 15 bn into local bonds this year, the majority of which came following the announcement of the Ras El Hekma agreement.

Egypt is preparing to begin bidding procedures to an international consultant to develop a strategy to localize the manufacture of electronic chips and solar cells.

The CEO of the General Authority for Investment and Free Zones stated that Egypt attracted FDI worth USD10.04 billion in FY23-24, with a growth rate of 12.3% compared to the previous fiscal year.

Egypt was recently able to pay USD400 million arrears to the airlines operating at various Egyptian airports.

SWDY is to reduce its capital from EGP2.17 billion to EGP2.14 billion by cancelling treasury shares in total of 30 million shares at a par value of EGP1/share. Accordingly, we adjust SWDY’s FV to EGP45.51/share from EGP44.88/share taking into account the new number of shares of 2.14 billion shares, instead of the previous 2.17 billion shares, post listing the issued capital decrease, effective 24 June 2024.

EGCH general assembly approved the adoption of the final price for the additional work of the nitric acid and ammonium nitrate project for the equivalent of USD117 million (USD97.4 million and EGP 937.8 million).

MOIL posted standalone net profit of USD609 thousand for the year ended 31 March 2024 as compared to a net loss of USD481 thousands last year.

COMI reduces the interest rate by 2% on the 3-year fixed rate CD, becoming the first bank to announce a reduction in interest rates on savings certificates, after the inflation rate declined in May to the lowest level in two years.