Al Ahly Pharos

Pre-Trading Thoughts

March 25, 2024 Al Ahly Pharos
Al Ahly Pharos
Pre-Trading Thoughts
Show Notes

Egypt has been listed on the agenda of the Executive Board of the International Monetary Fund next Friday, March 29, expected to approve the program newly agreed by the IMF staff level and the Egyptian government.

The CBE, on behalf of the Finance Ministry, sold six-month and one-year EGP-denominated treasury bills worth EGP108.6 billion on Thursday at yields of 27.723% and 28.253%.

SCZone racked up USD2.8 billion worth of port and industrial zone investments in 9M FY2023-24, spread between 127 projects, according to a cabinet statement.

No price hikes for unsubsidized bread, says Supply Minister Ali El Moselhi. The minister dismissed claims that unsubsidized bread could soon increase 20% and 25% for fino bread, especially in light of a recent drop in flour prices.

The Prime Minister announced that the government is considering increasing the strategic reserve of basic commodities by about 20%.

Egyptian banks have completed financing all pending import requests at the ports for basic commodities.

EGAL released its preliminary adjusted budget figures for FY24/25 post the EGP devaluation, targeting net profit after tax of EGP10.3 billion up from previously estimated figure of EGP4.3 billion vs. EGP3.7 billion recorded in FY22/23 and an estimated figure of EGP4.8 billion in FY23/24.

TMGH (FV: EGP73.80, OW) AGM approved the distribution of EGP0.22/share cash dividends over two installments, implying a DY of 0.4%.

HRHO’s arm ValU has closed an EGP888 million securitized bond issuance, backed by a receivables portfolio.

OFH (FV: EGP2.54, OW) reported FY23 results. Net profit of EGP20.5 million, compared to a FY22 loss of EGP133 million. OFH is currently trading at P/E24 of 28.0x and P/B24 of 0.7x. 

Banque du Caire’s net profit increased in 2023 by 112% y/y, recording EGP6.7 billion.

According to local media, governmental companies in Egypt raised the selling price of sugar to the commercial sector by 33%, bringing the price of a ton to EGP32k, due to the rise in production costs and the floatation of the EGP. The new prices came into effect last Saturday, with the aim of bringing the price of a kilogram of sugar to the final consumer to EGP35.

Weekly Commodities Update

 |   | Last Price | WoW Change, %
| Brent, USD/bbl | 85.4 | 0.1%
| Diesel-HSFO Spread, USD/ton | 370 | -4.3%
| Egypt Urea, USD/ton | 355 | -12.6%
| Polyethylene, USD/ton | 1,040 | 0.0%
| Polypropylene, USD/ton | 965 | -0.5%
| Steel/Iron Ore Spreads, USD/ton | 391 | 0.0%
| LME Aluminum Cash Price, USD/ton | 2,264 | 1.7%
| Egyptian Retail Cement, EGP/ton | 2,105 | 1.2%
| Steam Coal FOB Newcastle Australia, USD/ton | 128 | -2.5%
| SMP, USD/MT | 2,517 | -4.7%
| Last price may vary week over week in some indices due to time difference