Pre-Trading Thoughts

The EGX30 dropped 3.3% at yesterday’s close as global equity markets react to Trump's recent decisions. Other MENA capital markets fell too on the new tariffs and oil price plunge.

The EGP fell just over 1% against the greenback in trading yesterday. The dip saw the EGP pass the 51-mark against the USD and slip to its lowest level since last year’s March float. The drop came amid global uncertainty after Trump’s tariffs came into effect over the weekend, provoking uncertainty which might have led investors to exit some high-risk markets and pull out of both local and foreign debt. 

IMF Executive Director and former Finance Minister Mohamed Maait told reporters yesterday that the global economic picture remains murky.

Egypt targets attracting new French investments worth EUR1 billion in eight main sectors, including renewable energy, CIT, medical equipment, and food industries.

The Ministry of Finance has announced plans to implement 12 projects as PPP, in the water, sanitation, and electricity sectors, with investments exceeding EGP60 billion. 

The Finance Ministry is looking into offering additional incentives and financial support to the first 50k SMEs that join the simplified tax system as first-time taxpayers, Finance Minister said.

The Finance Ministry will begin issuing retail bonds through Egypt Post at what it describes as attractive interest rates. 

The Egyptian Drug Authority (EDA) is developing a new automatic pricing mechanism for pharma products that will adjust prices up or down based on fluctuations in input costs, most notably the EGP-USD exchange rate and raw material prices.

The Ministry of Finance revised its budget estimates for the current fiscal year 2024-25, reducing total expenditures to EGP3.838 trillion, compared to EGP3.87 trillion in the budget estimates. It also raised the interest bill to EGP1.914 trillion from EGP1.834 trillion, lowered its public investment forecast from EGP495.8 billion to EGP385.5 billion, and maintained the subsidy bill at EGP635.94 billion.

HELI (FV: EGP18.84, OW) reported 4Q24 net profit of EGP814.0 million, down 89.6% y/y and up 134.4% q/q, bringing FY24 net profit down 67.2% y/y to EGP2.6 billion. The Board proposed the distribution of cash dividends of EGP1.33/share, implying a payout ratio of 69.6% and dividend yield of 11.6%, and the distribution of 2:1 stock dividend.

GBCO announced that it has been assigned by Hyundai Motors to be the official distributor of its luxury brand Genesis in Egypt.

DOMT announced that it is still in the process of studying and negotiating with Arla Food to potentially exclude its bakery segment from the transaction.

HRHO's Bank NXT reported a 54% y/y increase in FY24 net income to EGP1.8 billion. 

EGX announced the controls for the subscription rights for the ATLC capital increase, stating that the opening price of the right on the first trading day would be EGP1.27 per right.

EGCH released FY25/26 budget with a net profit of EGP1.4 billion and total revenue of EGP9.5 billion, including EGP7.3 billion of export revenue. The company also released the investment budget with a total value of EGP7.1 billion.

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