Pre-Trading Thoughts

*Key news articles for today*

 The IMF raised Egypt’s economic growth to 3.8% YoY this fiscal year, up 0.2pps from its January forecast. Its projection for the coming fiscal year was also up, likewise coming in 0.2pps higher from its previous projection to 4.3% YoY. The IMF also sees inflation continuing to dip this fiscal year to a monthly average of 19.7% YoY.

The IMF forecasts global growth to log 2.8% in 2025, down 0.5 percentage point from previous estimates. Growth is expected to edge up to 3.0% in 2026, though this remains below the IMF’s earlier projections at 3.3%.

Kuwait is considering converting its c. USD4 billion deposits at the CBE into direct investments similar to the "Ras Al-Hikma" one.

The Ministry of Petroleum aims to gasify 1.6 billion cubic feet per day of imported LNG starting next June through three to four gasification vessels, an increase of approximately 1.2 billion cubic feet compared to the quantities gasified during the winter of approximately 300 to 400 million cubic feet per day.

The Finance Ministry is planning to introduce amendments to the Value Added Tax (VAT) Law that would scale back exemptions on sugar. Also, on the VAT exemption chopping block are training services, along with soap detergents. 

The Finance Ministry raised its target for cigarette tax revenues to EGP111.7 bn, up from EGP95 bn this year. The first tax-driven price hike for cigarettes — a 12.5% increase — is slated for November, with no earlier adjustment expected unless diesel or fuel prices climb, according to the head of the Federation of Egyptian Industries’ tobacco division.

Three Chinese business delegations are headed to Cairo next month to discuss investment across multiple sectors. 

Moroccan multinational outsourcing player Intelcia has inaugurated a new regional headquarters in Sheikh Zayed.

MICH posted 9M24/25 key indicators recording a 15% YoY drop in bottom line to EGP428.3 million on lower FX gains despite a 19% YoY growth in revenue to EGP781.9 million.

ORWE’s subsidiary Oriental Industrial Projects (OIP) wants to set up a EGP300 mn SME-focussed complex in Ain Sokhna. The complex will house 20 industrial units and wrap up construction in 2025.

ETEL revised its 2024 dividends’ distribution date to 23rd of April 2025, instead of 24th of April 2025.

EGTS’s next court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is on 1 July 2025.