Pre-Trading Thoughts

 Trump dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow trade negotiations with those countries, while raising the tariffs imposed on imports from China to 125% “effective immediately”.

The EGP dipped against the USD during trading yesterday, setting a new post-float low as the greenback changed hands for EGP 51.72-51.75.

The Sovereign Fund of Egypt (SFE) will begin restructuring five military-owned companies ahead of their planned listing. The firms are filling station operator Wataneya, bottled water company Safi, food manufacturer Silo Foods, fuel retailer Chill Out, and the National Roads Company. The offerings will take place between this year and 2026.

Egypt is planning on issuing USD2 bn in sukuk in 2025 through multiple offerings.

Some 29 French companies discussed plans to invest in the local manufacturing and transport sectors during a meeting with Industry and Transport Minister.

Egypt is preparing to receive a Moroccan government delegation in the coming weeks to continue talks on resolving a trade imbalance between the two countries.

Prime Minister Mostafa Madbouly revealed that Egypt has begun taking preemptive measures to address the global trade war, including hedging the purchase of some strategic commodities, most notably wheat. 

The government has decided not to renew oil price hedging contracts, which expired at the end of last March and covered 35% of the contracts, in light of the sharp decline in oil prices below USD60 per barrel. 

Egypt's trade deficit declined by 0.58% YoY in January, recording USD3.42 billion, compared to USD3.44 billion in January 2024.

Prime Minister Madbouly set the date for offering state-owned assets in downtown Cairo next June.

Two new projects with investments estimated at approximately USD58 million within the scope of the Chinese-owned "TEDA-Egypt" industrial zone in the Suez Canal Economic Zone were founded yesterday, in the home appliances and food industries' sectors.

QNBE (FV: EGP70.00, OW) recorded healthy results where 1Q25 net profit post-minority interest recorded EGP7,186 million (+14% q/q, +2% y/y). The stock is currently trading at 2025 multiples of P/B of 0.6x and P/E of 2.4x.

Banque du Caire proposed capital increase received the approval of the EGX’s listing committee. The bank will increase its issued and paid-in capital by EGP1.5 bn to EGP20.5 bn through issuing 750 mn new shares with a nominal value of EGP2 per share.

PHDC (FV: EGP8.97, OW) Board approved a EGP1.3 billion loan for its subsidiary to finance the construction of 200 hotel rooms in Hacienda White on the North Coast. In addition, the EGM approved a EGP40.0 million capital decrease through retiring treasury shares.

EKHO will pay out cash dividend of USD0.035 per share on its 2024 earnings after its general assembly approved the move. The assembly also approved the distribution of USD14.1 mn in bonus shares.

PHAR stated in an EGX release that the record date for its 2024 dividend of EGP3.0/share is 17th of April, 2025. It added that the dividend will be distributed on two installments, the first one is EGP1.5/share with a distribution date of 24th of April, 2025 and the second one is EGP1.5/share with a distribution date of 15th of September, 2025.