Pre-Trading Thoughts

The CBE has released the Balance of Payment (BoP)'s performance report for 1HFY2024/25. Key points are: 1) The overall BoP recorded a deficit of USD503 million in 1HFY2024/25, and 2) The current account (CA) deficit has surged by 15% YoY to c. USD11.1 billion. 

A team from the International Monetary Fund will begin the fifth review of the Extended Fund Facility Arrangement in Cairo this week. Further details will be communicated at the conclusion of the mission,” IMF Press Officer Angham Al Shami said.

The headline PMI declined from 49.2 in March to 48.5 in April, which was the lowest reading in 2025 so far. The downturn was widely attributed to a weakening of demand at non-oil companies. Lower levels of activity and new work led non-oil companies to rein in purchases of inputs for a second month in a row. Input prices in the non-oil economy rose at their fastest pace in four months in April, however, output prices were unchanged.

A tranche of the EUR4 bn grant from the EU could land in state coffers within weeks, EU Ambassador to Cairo Angelina Eichhorst told MENA news agency. The financing, part of a broader EUR5 bn macro-financial assistance package agreed in March 2024, was approved by the European Parliament last month.

The Madbouly government has agreed with Italian energy player Eni to raise the purchase price of new natural gas from onshore areas by 60%, a government official said. The hike will apply to output from sites managed by Agiba — a JV between Eni subsidiary IEOC and the Egyptian General Petroleum Corporation (EGPC).

The state is considering a proposal to allow every family to purchase a residential unit with affordable mortgage terms, including a subsidized interest rate and a repayment period of eight years at most, according to a cabinet statement. The initial plan prohibits selling the properties for a certain period of time.

PHDC achieved remarkable 1Q25 sales of EGP80.2 billion, up 148.4% y/y from an already strong 1Q24 and up 286.4% q/q, putting PHDC on track to achieve its FY25 sales target of EGP200.0 billion, which would imply a 32.4% y/y increase.

EGAL reported 3Q24/25 KPIs. Net profit after tax of EGP2.5 billion in 3Q24/25 (+42% YoY, -19% QoQ), EGP9.9 billion in 9M24/25 (+89% YoY). Bottom line performance was shaped by relatively tight operating margins along with a foreign exchange loss of EGP813 million that hit the P&L in 3Q23/24.  EGAL is currently trading at FY24/25e P/E of 5.5x.

 SWDY has acquired a 60% stake in Thomaseen Services to expand into the oil and gas industry. The acquisition consists of Thomassen’s Middle East and Africa business unit, filters manufacturing, and its African business affiliate. 

CLHO stated in a press release that it secured all necessary approvals to increase its ownership in Cairo specialized hospital from 57% to 90% of the company's shares. 

ISPH cancelled its plan to transfer el sherouk Pharma hospital to its investment arm "AIM" due to obstacles in issuing the needed licenses and approvals. ISPH added that it plans to exit from the hospital within three years.

EFID BoD approved the sale of a production line and machinery, which have been previously imported by EFID, to Ahramat Al Nile for General Trade and Food Industries-limited liability, located in Iraq, with total amount of USD3.0 million.