Pre-Trading Thoughts

Trump announced what he said were “kind” reciprocal tariffs against more than 180 countries Wednesday, along with a baseline tariff against other countries. Among the list was Egypt, at a 10% tariff charged.

Egypt's non-oil private sector entered contraction territory in March, following improvements in business conditions in January and February. The headline PMI fell from 50.1 in February to 49.2 in March, the lowest reading in three months. In tandem with lower output and new orders, purchasing activity decreased for the first time in four months. 

The European Parliament approved on Tuesday a EUR4 billion second tranche of a larger EUR7.4 billion macro-financial assistance (MFA) package for Egypt.

Net purchases of Egyptian T-bills and bonds by foreign investors in the secondary market amounted to c. EGP113.5 billion, (c. USD2.25 billion) during 1Q25.

Finance Minister Ahmed Kouchouk confirmed that the draft budget for FY25/26, which was approved by the Cabinet and referred to the House of Representatives, focuses on alleviating the burdens on low-income and vulnerable groups by adopting initiatives and programs to improve the standard of living, with EGP732.6 billion allocated to enhance social protection.

TMGH AGM approved the distribution of cash dividends of EGP0.25/share, implying a dividend yield of 0.5%, to be paid over two equal installments, the first by 31 May 2025 at the latest and the second by 31 July 2025 at the latest. The EGM approved a EGP29.1 million capital decrease through retiring treasury shares.

EGAL released its preliminary budget figures for FY25/26, targeting net profit after tax of EGP14.2 billion vs. EGP9.3 billion recorded in FY23/24 and an estimated figure of EGP11.7 billion in FY24/25. The budget is planned on an average exchange rate of EGP51.00/USD instead of EGP49.89/USD for FY24/25 and EGP36.23/USD for FY23/24. Proposed investments are estimated at EGP4.7 billion instead of EGP1.8 billion proposed a year ago.

CIRA has begun taking serious steps to expand in the Saudi market during the current year, with plans to launch new schools in the Kingdom. In addition, the company aims to expand into several new countries after completing its establishment in the Saudi market.

ValU is partnering with Hydroturf Egypt to offer flexible financing solutions for Club Car’s premium utility vehicles.