Al Ahly Pharos 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.

Market Overview 



Prepared by: Mayada Amin - CETA, CFTe

Market Overview 



Prepared by: Mayada Amin - CETA,  CFTe

The CBE's net foreign liabilities' position shrank in March by about 84% to be limited to USD1.38 billion, compared to USD8.7 billion in February, the lowest since March 2022.
The IMF revealed that the government is developing an electronic system for government procurement and studying the strengths and weaknesses of the public procurement system to improve the management of public investments.
Saudi Arabia’s Ajlan & Bros Holding has filed an offer to the government to secure a land plot in Sharm El Sheikh’s Ras Gamila for the establishment of ten hotels. The first phase will see Ajlan commit USD1.5 billion for the development of the hotels, excluding the price of the plot.
Egypt has reportedly received the second USD820 million tranche under the IMF’s USD8 billion loan program. 
The Oil Ministry is reportedly stopping all LNG exports to European markets starting next month.
The private sector is expected to pour close to EGP10 billion into setting up projects in former HQs of government ministries that are currently being offered up as part of the state’s privatization efforts, move to the new administrative capital, and plan to develop the downtown area, Planning Minister said.
The disruptions in the Red Sea prompted the CBE to expect weak purchases of foreign currency revenues from the Suez Canal during the year starting from March 2024 until February 2025. The bank expected to buy about USD3.4 billion from the Suez Canal, which is a limited value compared to previous expectations of purchases.
SWDY's general assembly approved a cash dividend distribution of EGP0.50/share for FY23, implying a payout ratio of 45.5% and a DY of 1.4%.
SWDY's general assembly approved decreasing the company's issued and paid-in capital from EGP2.17 billion to EGP2.14 billion through redeeming 30 million treasury shares with a value of EGP30 million. 
The Madbouly government plans to launch tenders for an unspecified number of water desalination projects in the Mediterranean Sea, Red Sea, and the Suez Canal within weeks.
MASR (FV: EGP5.24, OW) AGM approved the distribution of EGP0.20/share cash dividends (DY of 5.1%) over two tranches: EGP0.10/share in May 2024 and EGP010/share in October 2024.
OLFI is distributing cash dividends of EGP0.95/share, implying a payout ratio of 81% and a DY of 8.4%. Record date is 2 May 2024 and distribution date is 5 May 2024.
DSCW shareholders approved the distribution of cash dividends of EGP0.17/share, implying a payout ratio of 66.6% and a DY of 11.2%.
According to local press, EDA approved increasing the prices of some drugs in light of the increase in production costs attributed to the EGP devaluation. Sourced added that price increases of some drugs reached 50%. The implementation of price increases will occur gradually over stages.
BINV has finalized acquiring 68.9% of OFH (3.31 billion shares at an average price of EGP0.44/share). According to BINV’s CEO, the Sawiris family now owns around 20% in BINV after the transaction.
Sohoula consumer finance, Banque Misr’s arm, aims for securitization issuances worth more than EGP1 billion divided into two issues each worth EGP500 million, one to be finalized in 1H24 and the second towards the end of the year. 
Shell Egypt will begin the 11th development phase of the West Delta Deep Marine offshore concession in 3Q24. 
Weekly Commodities Update

Market Overview 
CCAP
UEGC
ESRS
HRHO 
QNBA
AIH


Prepared by: Mayada Amin - CETA, CFTe

The World Bank is considering providing a USD300 million loan to the Small and Medium Enterprises Agency, with the aim of enhancing the flexibility of small businesses in Egypt. 
Egypt's CDS rate rose during the past week, which witnessed an increase in geopolitical tensions in the Middle East, to 6.93% for 5 years at the close of trading on Friday, compared to 5.8% at the end of the previous week.
The government aims to raise around USD1 billion through the privatization of state-owned companies and assets via stake sales to strategic investors or EGX listings this year, and USD1.5 billion next year.
The next stage for Egypt is to “to accelerate the pace of reform” by achieving four goals, IMF Middle East and Central Asia head Jihad Azour said on the sidelines of the IMF and WB spring meetup in Washington. The goals are:
 
 1. To reduce the risks to the Egyptian economy. “The flexibility of the exchange rate contributes to this matter”.
2. Bringing down inflation. 
3. Raising the level of social protection.
4. Promote the private sector and job creation.
The price of non-subsidized bread will start falling starting today until it reaches normal levels. 
Minister of Supply announced a decrease in oil prices by 14%, in addition to previous reductions, bringing the total reductions on oil to 36%.
Finance Minister and Planning Minister will head to the House tomorrow to give statements on the draft state budget and socioeconomic development plan for FY2024-25. 
Egypt has inked 14 agreements with Chinese companies to set up projects alongside our local private sector.
The government aims to extend the average maturity of its debt instruments to 4.5-5 years as it focuses on longer-term bonds.
The Egyptian government received seven offers from international hotel chains to take advantage of old ministries’ headquarters.
Cabinet approved extending foreign operators’ exemption from airport fees until November 2024 as part of the state’s efforts to boost tourism.
ADIB is in talks to purchase a 15% stake in Bank Syariah Indonesia, Indonesia's biggest Islamic bank, for USD1.1 billion.
Mortgage finance firms could soon see their capital requirement doubled to EGP100 million local currency or its equivalent in FX, up from EGP50 million under new amendments. 
The FRA is working on developing a plan to implement Solvency II standards to enhance the financial and operational efficiency of insurance companies.
PHDC (FV: EGP7.11, OW) confirmed that it is co-developing a 415 feddan project in Sidi Heneish on the North Coast and stated that expected revenue and revenue share are still to be determined. The project will be launched in 2Q24.
According to local media, PHDC (FV: EGP7.11, OW) is preparing to take out a EGP1.7 billion loan.
According to local media, natural gas production in Egypt declined to 4.286 bcf in February 2024 from 4.651 bcf in January 2024, the lowest since February 2018.
Energean plc, an international hydrocarbon exploration and production company, expects to invest USD30-50 million in Egypt during 2024. 
SDX sold its 50% working interest in two blocks in the West Gharib concession in the Eastern Desert to Horizons LLC and NPC Petroleum Services for USD6.6 million. 
According to local media, in light of the decrease in price of locally produced cars, GBCO will compensate distributors for these price differences.