Pre-Trading Thoughts

The MPC is scheduled to meet later today to decide on interest rates. We believe the CBE has the room to ease by up to 200 bps in its meeting today.

The Finance Ministry has more than doubled its target for international debt issuances in the draft budget for the next fiscal year, coming in at a total of EGP400 billion (USD8 billion), up from EGP150 billion (USD3 billion) in the current fiscal year, according to official figures. 

Remittances from Egyptians abroad continued their upward pace at the start of the year, rising 83.2% y-o-y to USD2.9 billion in January, according to a statement from the CBE.  

The Finance Ministry expects Suez Canal revenues from transit fees to almost double to USD6.3 billion in the budget draft for FY25/26, compared to USD3.7 billion estimated in the current fiscal year. 

Suez Canal revenues reached USD3.99 billion in 2024, a 61% decrease compared to USD10.25 billion in 2023, due to lower tonnage, impacted by Red Sea disruptions. 

Property developer Landmark for Real Estate Development (LMD) is in talks with the Egyptian government to develop a new USD4 billion mixed-use project in Cairo, Managing Partner Hamad Al Abbar said.

Chevron — the operator of the last active exploration block in the Red Sea — is reportedly on its way out of the block it operates, Asharq Business reported, citing an unnamed government source. 

Investment Minister Hassan El Khatib and Tunisian Prime Minister Sara Zaafarani discussed putting into motion a proposal to establish a joint bank to facilitate investment and trade between the nations, according to a ministry statement.

Petroleum products' subsidies increased by about EGP28 billion during the 9M24/25, reaching EGP104.9 billion, compared to EGP76.3 billion in the comparable period a year before.

MBSC attributable bottom line recorded an impressive EGP495.0 million (+295% YoY, +199% QoQ) during 4Q24, bringing FY24 attributable bottom line to EGP833.5 million (+126% YoY). Enhanced profitability came on the back of sturdy revenue growth and operating margin expansion that trickled down to bottom line. MBSC is trading at FY25e P/E of 8.4x. 

MBSC BoD approved a capital decrease through the cancellation of treasury shares amounting to 6.1 million shares at a value of EGP61.1 million, resulting in issued and paid-in capital of EGP550.2 million.

EFIC will distribute cash dividends of EGP15.00/share over three equal tranches on 30 April, 20 August, and 30 September 2025, for shareholders on record on 27 April 2025. This implies a dividend yield of 10% and a payout ratio of 62% of FY24 earnings. 

MFPC will distribute cash dividends of EGP1.00/share on 7 May 2025 and EGP2.50/share on 30 September 2025 for shareholders on record on 4 May 2025. DPS totals EGP3.50/share for FY24, implying a dividend yield of 8% and a payout ratio of 48% of FY24 earnings.

OCDI intends to sign a co-development agreement with Midar in 3Q25 to develop a 4.2 million sqm land plot in East Cairo.