Pre-Trading Thoughts

Saudi Crown Prince Mohammed bin Salman announced that he has directed Saudi’s Public Investment Fund (PIF) to pump USD 5 bn in investments into Egypt as part of the “first phase” of a larger program of investment.

The Agreement on Promotion and Mutual Protection of Investments between the two countries will be put into effect in two months or less after both sides sort out the necessary legislative and regulatory issues.

A new package of tax incentives for SMEs are soon to be released as part of the government’s new tax reform package. 

The government is reconsidering its decision to sell the Siemens-built Beni Suef power plant, unnamed government sources told Al Arabiya. 

Saudi energy player ACWA Power is considering investing USD1.5 bn in a new project in Egypt, the company’s vice chairman, Raad Al Saady, said.

Egypt’s wheat imports increased 30% y-o-y in 1H 2024 to USD2.3 bn.

The number of taxpayers with the Egyptian Tax Authority increased during 8M2024 by 105% compared to the same period last year.

We published our 2Q24 Cement Wrap Up report yesterday; we upgraded our FV for ARCC to EGP17.80/share with Overweight recommendation, we upgraded our FV for MBSC to EGP53.30/share with Overweight recommendation, and we upgraded our FV for MCQE to EGP26.00/share with Equalweight recommendation. 

EGAL is in serious talks with the German company Achenbach over its potential investment and funding of EGAL's aluminum foil production line with estimated investments of USD100 million. 

MCQE to distribute EGP0.5/share for FY23 over two equal installments, as previously approved by the general assembly. Record date is 25 September 2024. Distribution date of first installment is 30 September 2024. Distribution date of second installment is 28 November 2024. 

The Industry Ministry is looking into contracting local and foreign private players to take over the management and operation of three industrial zones.

Hisham Ezz Al Arab appointed as CIB’s CEO and board member, taking over from Hussein Abaza, who took a three-year stint at Banque du Caire as its CEO, taking over from Tarek Fayed. While Neveen Sabbour will replace Ezz Al Arab as non-executive chairman. 

The FRA has updated the regulations that govern mergers and acquisitions of NBFIs in a move aimed at enhancing competitiveness and streamlining the approval process, according to a statement.  

CICH will introduce a cash incentive scheme for employees, executive board members, and its subsidiaries after its board greenlit the move in principle. The scheme will allocate 3% of the company’s fair value for the FY ending in 2025 and will be paid in EGP after 31 December 2025.

Majid Al Futtaim has announced a strategic partnership with HRHO’s consumer finance arm, ValU, to launch a gift card procurement service to provide flexible payment solutions.

City Lab is set to finalize its acquisition of Cairo Clinical Labs, with the two sides agreeing to ink the final agreement tomorrow, City Labs said in an EGX disclosure. 

Egyptian Drug Holding Company received five offers from investment banks to manage the public offering of Chemical Industries Development Company-CID and Misr Pharma on the EGX.  

Fertilizers exports declined by 20% YoY during 1H24 to USD1.085 billion, from USD1.358 billion in 1H23.

According to local media, CIRA is close to completing the latest issuance of future rights securitization bonds worth EGP500 million early next month.