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Welcome to our daily podcast featuring the day's top news commentary and technical recommendations delivered to you before the opening bells of the Egyptian Stock Exchange (EGX).Alongside our morning podcasts, we will be publishing a collection of episodes presenting indepth analysis and insights on EGX's equities, all brought to you by Al Ahly Pharos.
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Pre-Trading Thoughts

Pre-Trading Thoughts

2023-02-0702:13

CBE revealed the sale of one-year treasury bills for USD1.06 billion at an average rate of 4.9%.The government intends to sell 5-20% stakes of around 20 owned companies either through IPO or by selling to strategic investors, starting March 2023. Companies include: Ennpi, EDC, Midor, Assiyut Refining, AMOC, SKPC, Ethydco, ABUK, Emethanex, ELAB, Port Said Containers, Damietta Containers, Housing & Development Bank, Bank of Alexandria, Banque du Caire, E-finance, HELI, MNHD, Misr Life Insurance, EGAL, and Waphco.The Cabinet will release its hydrogen strategy within a month.Prime Minister Moustafa Madbouly has tasked the Cabinet Information and Decision Support Center to work on strategies that could reduce our exposure to external risks in the coming years.The FRA has amended rules governing capital increases in a bid to make it easier for EGX-listed firms to raise fresh capital. ORHD expects real estate selling prices to increase by up to 30.0% in 2023 and plans to deliver 1,400 units in O West in 2023.EGAS released FY22 results indicators posting an 82% YoY increase in net profit to EGP302 million, compared to EGP165.8 million in FY21.TALM reached a preliminary agreement with one of the banks to borrow EGP1.5 bn to finance part of its new project "Badya University".ELEC clarified that the meters facility in Abu Rawash is owned by ELEC's subsidiary Giza Power Industry and hasn't been finalized neither its investment cost.Orange Egypt signed a partnership agreement with FWRY to enhance digital payment services through Orange Cash wallet, mobile money transfer and digital banking services.
Technical Analysis

Technical Analysis

2023-02-0701:12

Market Overview Prepared by: Mayada Amin -CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-02-0605:13

Foreign reserves inched up to USD34.2 billion in January from USD34 billion the previous monthActivity in Egypt’s non-oil private sector contracted for the 26th consecutive month in January. The PMI reading fell to 45.5 in January from 47.2 a month before.Policymakers consider amending capital gains tax rules in response to the current exchange-rate volatility. Capital gains tax on gains from stock trades made by resident investors in fiscal year 2022 would not be due until after the new tax legislation is passed.The Senate Industrial Committee approved a new government-drafted bill that would grant the Industrial Development Authority (IDA) the power for three years to allow unlicensed industrial projects to operate for a temporary one-year period.Fees for using natural gas national grid declined to 37.6 cents per mmbtu in 2023, down from 41.07 cents per mmbtu during 2022.Helwan fertilizers Co sells 10% of its total shares with total value of EGP1.314 billion. It is noteworthy that Abu Qir Fertilizers owns 17% in Helwan Fertilizers but the deal doesn't have any impact on its shares in the company. Foreign investment funds are interested in acquiring stake in El Nasr Fertilizers Company- SEMADCO. The government is looking to sell its shares to strategic investors. It is noteworthy that Chemical Industries Holding Company- CIHC is the main owner of Semadco’s shares and currently, a valuation is being carried to determine the fair value for the company. EGBE achieved net profits of EGP 856 million in 2022, compared to EGP 696 million in 2021, an increase of 22.9%, supported by an increase in revenues to EGP 8.23 billion from EGP 7.61 billion in the comparable period.According to local media, Arab African International Bank is looking to sell its entire 12.7% stake in PHDC (FV: EGP3.91, OW) to Emirati investment company, Al Ain Holding.EGTS’s (FV: EGP1.68, EW) court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 11 March 2023.ISPH signed a distribution agreement with “Boehringer Ingelheim”, one of the world's leading pharmaceutical companies, to distribute Boehringer Ingelheim treatments. Boehringer Ingelheim’s key biopharmaceutical disease areas include type 2 diabetes, hypertension, and respiratory diseases and stroke.US-based, Egypt-focused asset manager, Concord International Investments plans to establish a USD40 mn company to invest in Egypt’s healthcare sector.ELEC launched a new plant for meters production with a capacity of 1.5 million meter per year and investments of EGP60 million in Abu Rawash, Giza. The company plans to export part of the plant's production especially to African countries, where the local component of meters reaches around 70%, the CEO pointed.The Transport Ministry has denied that it’s in talks to sell development and management rights at Suez Port to Abu Dhabi Ports.The Ministry also denied that it is in advanced talks with ADQ to take over the management of the port under a usufruct contract.Weekly Commodities Update:  | Chems & Petchems | | Last Price | WoW Change, % | Brent, USD/bbl | 79.9 | -7.8% | Diesel-HSFO Spread, USD/ton | 462.6 | -19.6% | Egypt Urea, USD/ton | 410.0 | -7.9% | Polyethylene, USD/ton | 1,120.0 | 0.9% | Polypropylene, USD/ton | 1,025.0 | 0.0% | Steel/Iron Ore Spreads, USD/ton | 472.4 | 1.0% | LME Aluminum Cash Price, USD/ton | 2,534.5 | -2.2% | Egyptian Retail Cement, EGP/ton | 1,920.0 | 0.0% | Steam Coal FOB Newcastle Australia, USD/ton | 236.0 | -34.1% | SMP, USD/MT | 2,842.0 | 0.1%
Technical Analysis

Technical Analysis

2023-02-0601:39

Market Overview Prepared by/ Mayada Amin-CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-02-0504:16

The CBE decided to keep overnight deposit rate, overnight lending rate, and the rate of the main operation unchanged at 16.25%, 17.25%, and 16.75%, respectively. Egypt’s current account deficit narrowed by 20.2% to USD3.2 billion in 1Q22/23. The improved performance was attributed primarily toNet FDI inflows doubled to reach USD3.3 billion.Tourism revenues surged more than 43% y-o-y to USD4.1 billion, driven by a more than 50% increase in arrivals.The trade deficit narrowed to USD9.1 billion, down 18% from the same period last year.Suez Canal receipts rose 19% to USD2 billion.On the other hand,Foreign investors pulled almost USD2.2 billion as the war in Ukraine and interest rate hikes by global central banks drew funds away from emerging markets.Remittances fell more than 20% to USD6.4 billion. The balance of payments recorded an overall surplus of USD523.5 million during the July-September period. Suez Canal revenues grew 47% y-o-y in January to an all-time monthly high of USD802 million. The cost of insuring against default on Egypt’s one-year t-bills (CDS) is currently around 500 bps, down significantly from the peak of almost 1,800 last July but still up significantly from lows in 2021. The energy sector represents 50% of the state-owned companies that the government plans to offer stakes in this year. Egyptian Electric Utility & Consumer Protection Regulatory Agency approved a new tariff for using the electricity transmission grid during FY22/23. The tariff for extra high voltage is 4.96 piasters/kwh, 14.53 piasters/kwh for the high voltage, and 15.52 piasters/kwh for medium voltage. The CBE has instructed local banks to use FX obtained from the interbank market to fund imports rather than to cover overdrawn FX accounts. According to local news, HRHO has decided to postpone listing its consumer finance arm ValU until next year.Several local banks have re-applied the mortgage financing initiatives with returns of 3% and 8%, after transferring the initiative to the Ministry of Housing and Urban Communities instead of the CBE. The 13 draft oil agreements for oil exploration in the Western Desert, Gulf of Suez, and the Mediterranean will bring minimum investments of USD650 million. Ethydco is currently negotiating to reschedule USD1.25 billion in debts. The Education Ministry will launch an in-school tutoring scheme across all governorates at the start of the second semester of the academic year next week. NTRA is currently discussing with MNOs allowing Wi-Fi-supported calls service, which is expected to be implemented during the current year. Sweden-headquartered outsourcing company Transcom has opened an outsourcing center in Sixth of October’s Smart Village.  
Technical Analysis

Technical Analysis

2023-02-0501:16

Market Overview Prepared by: Mayada Amin - CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-02-0204:38

The Prime Minister announced that stakes in no less than 20 state-owned companies will be offered to strategic investors or on the EGX within the next year. The names of those companies should be revealed next week.  The US Federal Reserve yesterday raised rates by 25 basis points to a target range of 4.5-4.75%, as expected to a large extent in response to signs of cooling inflation and slowing growth. The cabinet granted four unnamed companies in the logistics, vaccine manufacturing, auto parts manufacturing, and hotel sectors, initial approval to obtain golden licenses. The companies will get final approval once they act on unspecified comments from cabinet members at the meeting. Tax revenues increased by 20% after applying the electronic tax system, which allowed the inclusion of the informal economy.Chimera Investments will now acquire 20% of AUTO's (FV: EGP7.50, OW) MNT-Halan after adding an investment of USD200 mn in the firm. The new investments put the company on track for a valuation of more than USD 1 bn. However, GB Capital and its subsidiaries continue to hold the majority of the value within the group’s valuation, forming 78.8% of our FV.AMIC released their December 2022 report, showing a decline in PC sales volume by 75.1% YoY and a MoM climb of 6% to reach 5,524 sold unit. ESRS raised the price of rebars to EGP26,985/ton (including VAT) as of February 1, 2023, 4% higher than January 11, 2023, and 32% higher than the beginning of December 2022.We remind you that EGTS’s (FV: EGP1.68, EW) next court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is, if not further postponed, on 4 February 2023.NUCA decided to extend the time allowed for developers to implement projects by 20%, with postponing the installments due from the developer for the same period.COMI announced yesterday the suspension of issuing CDs for individuals for a period of one and a half years with an annual return of 20%, paid monthly and 22.5% paid at maturity.An OPEC+ panel endorsed the oil producer group's current output policy at a meeting on Wednesday, leaving production cuts agreed last year in place amid hopes of higher Chinese demand and uncertain prospects for Russian supply.The Cabinet approved 13 draft oil agreements for oil exploration in the Western Desert, Gulf of Suez, and the Mediterranean. The exploration rights will go to the Egyptian General Petroleum Corporation (EGPC), EGAS, and a number of unnamed international companies once legislative procedures are completed.According to the Oil Ministry, Eni produced around 60% of Egypt’s natural gas during 2022.The US contractor McDermott has signed an MoU with Greek renewables company Eunice Energy Group to work on a 2-GW interconnector that will link Greece and Egypt’s electricity grids, according to a joint statement. 
Technical Analysis

Technical Analysis

2023-02-0201:25

Market Overview Prepared by  Mayada Amin- CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-02-0105:26

Pitch: ARCC| An Efficient Player in Tough Times; Upgrade FV to EGP9.94/share. We expect a healthy growth in cement prices (5-year CAGR of 14%, compared to a CAGR of 3% previously), driven mainly by a 50% hike in 2023 to cover up the soaring coal and pet coke prices post currency depreciation. ARCC is enjoying an efficient energy mix (pet coke and alternative fuels fulfill around 80% of ARCC’s energy requirements, a cheaper alternative to coal). We expect ARCC to maintain a solid GPM of 20% in 2023 and maintain an average of 17% going forward. We forecast ARCC to post net profits of EGP625 million, marking a 79% YoY growth in 2023. We expect a dividends payout ratio of 70% of 2023 net profit, which translates into EGP1.15/share (DY of 18%). ARCC is currently trading at FY23e P/E of 3.9x and EV/EBITDA of 2.3x.The IMF has cut its economic growth forecast for Egypt, saying it sees GDP growing 4.0% this year, a 0.4% trim from its previous forecast in October.Egypt's net foreign assets (NFAs) improved by EGP47.28 billion in December (USD2.0 billion), marking a second month of increases after it allowed its currency to depreciate sharply in October, Central Bank data showed. NFAs improved to a negative EGP494.3 billion from a negative EGP541.5 billion in November.The EBRD provided EUR1.3 billion to Egypt in 2022, 70% of which was directed towards the private sector to promote social inclusion and green transformation.The EBRD, the EU, and the Green Climate Fund (GCF) will provide USD175.5 million to local banks to on-lend to green projects and SMEs in Egypt.An Indian company showed interest to establish a renewable and green hydrogen project in Egypt with investments of EGP1 billion.Fitch Solutions expects an increase in Egyptian tourism arrivals to reach 52 million tourists until 2026, due to a predicted decrease in the effects of COVID-19 pandemic and the Russian-Ukrainian war. The international economic institution expects the number of tourists who will visit Egypt to reach 11.5 million in 2023, 13 million in 2024, 13.5 million in 2025, and 14 million in 2026.We upgrade our valuation for AUTO to EGP7.50/share, up from EGP6.55/share, maintaining OW. Our update is based on: GB Auto enhancing margins despite the challenging circumstances faced by the industry, the multiple price increases implemented helped the company’s margins as volumes dropped significantly due to FCY shortage, supporting revenue streams from after-sales-services. GB Capital and its subsidiaries continue to hold the majority of the value within the group’s valuation, forming 78.8% of our FV. We expect GB Capital’s portfolio to grow by a 5yr CAGR of 24.8% and maintain a healthy loan quality. AUTO is currently trading at a FY23 P/E of 2.4x and an EV/EBITDA of 3.6x.We upgrade our valuation for EFID to EGP19.00/share, up from EGP13.33/share, maintaining OW. Our update is based on: The company’s plan to be present throughout multiple price points allowed the company to strengthen its market share without risking margins, the company’s strong presence in the snack food market as well as its product offering will serve as the main substitute for imported products that are becoming less affordable to the end consumer, EFID’s solid market position allowed it to penetrate multiple market segments and increase volumes and overall demand despite the multiple price increases implemented to offset for rising costs, gaining a relatively large market share in its first year in Morocco, which should gain further momentum with planned expansion plans. EFID is currently trading at a FY23 P/E of 10.2x and an EV/EBITDA of 5.9x. SKPC released FY22 unaudited financial indicators posting 131% YoY growth in net profit to record EGP1,238 million. Net profit increased by 179% YoY (+78% QoQ) to EGP494 million in 4Q22. SKPC is trading at 2023f P/E of 6.5x and
Technical Analysis

Technical Analysis

2023-02-0101:34

Market Overview Prepared by: Mayada Amin- CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-01-3104:28

Pitch: ADIB| The Rising Star; Upgrade FV to EGP 28.50/share. The bank is currently trading at 0.9x P/B23 and 5.0x P/E23 on net profit post minority and appropriations of EGP 2.2 billion (growth of 24% y/y). Our FV is EGP 28.50/share on 500 million shares, post the conclusion of the final round of capital increase. The stock is the second most liquid in the sector after COMI and joined EGX30. We see a solid potential in the bank with bottom line 5-year CAGR of 21%, and an average RoAE of 19% over 2023-2027. Pitch: AMOC| Not Reflecting EGP30/USD or Current Spreads; Upgrade FV to EGP10.80. The local currency depreciation is expected to offset the normalization in petroleum products prices. Diesel-fuel oil spread is currently at its highest since 2010/2011. We forecast AMOC to post net profits of EGP2,507 million, marking a 110% YoY growth in FY22/23. We expect the company to pay out 70% of FY22/23 net profit, which translates into EGP1.24/share, or a 16% dividend yield. AMOC is currently trading at FY22/23e P/E of 4.4x and EV/EBITDA of 2.8x.National Bank of Egypt, Banque Misr, and Banque du Caire will suspend the one-year, 25% certificates of deposit by the end of the day today.Suez Canal revenues rose 46% y-o-y in January to USD 717 mn. Some 1.95k ships transited the canal this month, up 21% y-o-y. Net tonnage rose 16% y-o-y to 110.6 mn tons.Prime Minister noted that subsidized loans cost the government EGP 10 bn. The government is spending EGP 6 bn a year to subsidize electricity prices for the industrial sector.El Sisi held talks with several Indian firms to draw investments in Egypt’s green infrastructure, including renewable and green hydrogen. EGX30 February Rebalancing: ADIB, EFID, and TALM replaced ALCN, HDBK, and QNBA.Negotiations on pricing and final stake for QIA’s acquisition deal on Vodafone Egypt are still ongoing and have to be concluded before the final official offer submission, according to local press.CICH (FV: EGP8.00, OW) is studying a new investment opportunity in the NBFS sector, through establishment or acquisition. 
Technical Analysis

Technical Analysis

2023-01-3101:33

Market Overview Prepared by: Mayada Amin - CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-01-3004:59

Egypt's external debt declined during the third quarter of last year by about USD720 million, to record USD154.98 billion, which is the second consecutive quarterly decline. Egypt joining the BRICS’ New Development Bank is raising hopes that this might help reduce demand for USD in the economy, as bank members can use their local currencies in bilateral trade. ORHD achieved stellar 4Q22 sales of EGP3.8 billion, up 28.6% y/y, bringing FY22 sales to ORHD’s highest-ever annual sales of EGP11.1 billion, up 20.7% y/y. Hospitality performance was strong in 4Q22, with occupancy rate in El Gouna reaching 73%, compared to 69% in 4Q21. ORHD is trading at a 2023 P/E of 5.6x and 2023 EV/EBITDA of 3.4x.ABUK released positive 2Q22/23 net profit after taxes at EGP4,457 million (+60% QoQ, +133% YoY). Net profit of 1H22/23 came in at EGP7,234 million (more than 2x). Weaker local currency compensated for the drop in Urea prices. ABUK is currently trading at FY22/23 EV/EBITDA of 3.7x and P/E of 5.3x.MICH's net profit in 1H22/23 registered EGP281 million compared to EGP96 million in 1H22/22. The Minister of Petroleum announced the establishment of the Egyptian Company for Soda Ash with investments of USD500 million and an annual production capacity of 600k tons. FRA approved extending National Paint's offer to buy Pachin's shares for 60 more days.CCAP approved a new ESOP equal to 5% of the company's issued shares, over six years.I Check, for converting cars to work with natural gas, will IPO 25% of its shares in EGX at the end of 2023 or early 2024. OLFI recorded an attributable net profit of EGP135.8 mn for the quarter, 42.3% higher YoY and a 6.8% decline QoQ. OLFI is due for a valuation review that will bring their FV higher by 10-15% to a range of EGP9.6 to EGP10.0. OLFI’s BoD approved dividends distribution of EGP0.95/share, DY of 9.8%. OLFI is currently trading at a FY23 P/E of 5.5x and an EV/EBITDA of 3.8x.Chinese “Hisense” is negotiating with the government to manufacture its appliances in Egypt. ALCN released 2Q22/23 net profit rise of 197% YoY and 69% QoQ to record EGP1.1 billion in 2Q22/23, mainly driven by weaker local currency. ALCN is currently trading at 22/23f P/E of 7.7x and EV/EBITDA of 8.5x.  Maha Capital, the investment arm of Qatar Investment Authority, offers to acquire more than 50% of Port Said Container Handling and Damietta Container Handling.CLHO shareholders approved cancelling treasury shares (154 million shares, worth EGP77.28 million), bringing the company's paid in capital to EGP722.72 million. CLHO is currently trading at 2023f P/E of 19.5x and EV/EBITDA of 10.0x.ISPH announced signing a distribution and promotion agreement for the Sandoz over-the-counter (OTC) portfolio of products.Weekly Commodities UpdateBrent, USD/bbl         86.7    -1.1%Diesel-HSFO Spread, USD/ton        575.2  -8.9%Egypt Urea, USD/ton 445.0  -11.4%Polyethylene, USD/ton         1,110.0          0.9%Polypropylene, USD/ton      1,000.0          0.0%Steel/Iron Ore Spreads, USD/ton    469.9  1.0%LME Aluminum Cash Price, USD/ton          2,591.5                 0.4%LME Copper Cash Price, USD/ton    9,242.2                    -0.7%Egyptian Retail Cement, EGP/ton    1,920.0                 0.0%Steam Coal, USD/ton    358.1          2.0%SMP, USD/MT           2,842.0           0.1%
Technical Analysis

Technical Analysis

2023-01-2903:02

- Market Overview - COMI- HRHO- ORWE- PHDC- EMFD- CCAP- MTIE- TMGHPrepared by: Mayada Amin- CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-01-2905:34

S&P Global Ratings has affirmed Egypt’s B credit rating with a stable outlook. Prime Minister announced in a speech to reporters the following: 1) The backlog of imported goods at Egyptian ports has been cleared.2) The government will in two weeks reveal the details of the state-owned firms it plans to offer on the EGX this year. 3) The government will work to activate the initiative to finance the industrial sector, with an interest rate of 11%, starting next week. 4) The government will announce the industrial development map in the coming weeks, which would help the country achieve USD100 billion in exports.The Ministry of Finance targets in FY23/24 to achieve a real GDP growth rate of 5.5%, a primary surplus of more than 2%, and bring the total budget deficit to less than 6%, along with debt rates of less than 80% to GDP.The Chairman of the General Authority for Investment confirmed that by next April there will be complete automation of the process for establishing new companies in Egypt, and work is underway to reduce the period for issuing golden licenses to investors to be within 20 days.The Fed is widely expected to continue to slow the pace of its interest rate hikes with a smaller 25-bps increase when it meets on Tuesday and Wednesday. In Egypt, we are factoring in a 200 bps hike in rates to reduce the magnitude of negative real interest rates, in light of the recent spike in inflation.The Parliament is discussing a proposal to amend the accounting standards used in evaluating the assets of companies listed on the EGX at fair values instead of their book values.The cabinet approved giving the Industrial Development Authority the power to cancel or discount penalties to industrial players that fail to deliver projects on time.CIRA 1Q22/23 net profit climbed by 7.7% YoY to reach EGP107 mn. EGAL raised its selling price in the local market by EGP23k per ton over the last two weeks to reach EGP116k per ton.SWDY announced that its subsidiary El Sewedy Cables Qatar received a provisional Letter of Award from Qatar General Electricity & Water Corporation for the establishment of new underground Extra High Voltage / High Voltage Cables (EHV/HV) in addition to different voltage levels from 132kV, 66kV and modifications of the existing circuits MW. The project value exceeds USD328 million, to be executed through a period of 30 months.The Egyptian Electric Utility and Consumer Protection Regulatory Agency will exempt solar projects producing up to 10 MW of power from paying integration fees, raising the ceiling from 500 KW.According to local media sources, Mashreq Bank has received the CBE’s approval to issue one-year CDs with a monthly 22.5% return. The bank will also issue three-year CDs offering a one-time payment of 19% on maturity, or opt for payments monthly (18.75%), quarterly (18.80%) or semi-annually (18.90%).The CBE offered three-year treasury bonds with variable interest rates for the first time on Tuesday. The bonds will pay out interest quarterly at a rate 4.25% higher than the corridor rate. The Finance Ministry agreed to double the size of the auction to more than EGP2 bn after it was almost 6x oversubscribed.COMI received the approval of the Central Bank of Kenya to acquire the remaining 49% stake in MAYFAIR-CIB Bank.EFIC  standalone 2022 net profit amounted to EGP489 million compared to EGP209 million in 2021.CPCI 2Q22/23 net profit reached EGP11.3 million in (-75.0% YoY, -70.9% QoQ), bringing 1H22/23 net profit to EGP50.1 million in (-39.0% YoY).
Technical Analysis

Technical Analysis

2023-01-2802:30

- Market Overview - COMI- SAUD- SWDY- ABUK- MTIE- EMFD- prepared by: Mayada Amin- CETA,  CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-01-2505:24

ORHD| A Dollar-Denominated Asset That Is Still Cheap. ORHD offers solid sales, exposure to the revival in tourism, diversified revenue mix (real estate, hotels, town management), sizable recurring income (hotels, town management), large residual land bank (around 25.0 million sqm), unique product offering (El Gouna, Makadi Heights, Taba Heights), solid development track record, and the shortest installment schedule and highest selling price among sector coverage offered in El Gouna. The stock is a key beneficiary of EGP depreciation on the asset side given land and units in El Gouna are priced in USD.  ORHD’s market cap/sqm is currently at USD11.4/sqm which is heavily discounted compared to historical land transaction sales prices of USD120-375/sqm in El Gouna. At the current market price, the stock offers 104.5% upside potential to our FV of EGP15.32/share.ORHD is trading at a P/E 2023 of ​4.7x and EV/EBITDA 2023 of ​2.9x.Imports worth more than USD 1.5 bn were cleared from our ports between 18-23 January.Banque Misr and the National Bank of Egypt are cancelling the offering of the one-year, 25% certificates of deposit after the end of January. Minister of Electricity and Renewable Energy decided to extend the implementation of the decision not to implement an increase in electricity prices for an additional 6 months, ending on June 30, 2023. The Public Authority for Industrial Development approved granting a free grace period of an additional six months to industrial projects that exceeded the implementation timetable, while exempting them from 50% of delay fines for previous periods.Sovereign Fund of Egypt revealed that 7 foreign consortia are examining 7 state-owned hotels, with the aim of increasing their capital, to acquire a 30% stake.AMOC released impressive 2Q22/23 financial indicators showing a 240% YoY and 52% QoQ growth in net profit before minority interest, recording EGP605 million. AMOC is trading at FY22/23 P/E of 4.9x and EV/EBITDA of 4.5x. At current FX assumptions, stock should yield a FV of EGP10.50/share.Mopco has appointed Mohamed El Sayed Sobhy Mansour Amer its new chairman and managing director.The Sovereign Fund, through its sub-fund for health services and pharmaceutical industries, signed two agreements to invest EGP 2 billion, in partnership with B Investments Holding Company, in the field of specialized health care services, and pharmaceutical distribution and trade services in Egypt.ORAS declared a second cash dividend distribution of EGP5.54/share for FY2021, bringing the year’s dividend yield to 10.0%. The dividend is to be distributed on February 9, 2023 for shareholders of record on February 2, 2023.The Ministry of Electricity and Renewable Energy has taken the first steps to implement the electrical supply project for the El Alamein-Sokhna high-speed electric train project, at a cost of nearly EGP10 billion. ADCI released 2Q22/23 initial indicators. Bottom-line came in at EGP25.5 million in 2Q22/23 (+7.3% YoY, -7.9% QoQ), bottom-line recorded EGP53.2 million in 1H22/23 (+7.5% YoY). ADCI is currently trading at FY22/23f P/E of 5.9x and EV/EBITDA of 3.9xPHDC is establishing the GEMS British International School of Badya in its Badya project in partnership with Egypt Education Platform. Hilton signed its second property in Marsa Alam, encompassing 282 rooms.SVCE appeal against Reliance Heavy Industries Co. was postponed till February 27, 2023. 
Technical Analysis

Technical Analysis

2023-01-2503:05

- Market Overview - COMI- JUFO- EGAS- ADIB- CIEB- ORWE- HRHOPrepared by: Mayada Amin- CETA, CFTe
Pre-Trading Thoughts

Pre-Trading Thoughts

2023-01-2402:52

The Egyptian government held an extended meeting with the World Bank, on Sunday, to discuss the country's financing package. The portfolio between Egypt and the World Bank is c.USD 6.8 billion.Al Mal Newspaper reported that several international institutions decided to invest in Egyptian sovereign debt instruments, including Goldman Sachs and JP Morgan. Minister of Petroleum expected that Egypt's oil exports would reach more than USD18 billion in 2023, revealing that reserves for new gas discoveries are being evaluated.The Sovereign Wealth Fund of Egypt: Gulf investors are evaluating 7 hotels in Egypt, to purchase strategic stakes within, through capital injections. HELI cancelled the agreement with Mountain View to co-develop the 1,695 feddan Heliopark land plot in light of current economic developments and rise in land valuations. Heliopark contributes EGP7.11/share to our EGP12.44/share HELI valuation assuming initial guidelines of the Mountain View co-development agreement.OCDI signed a EGP2.8 billion loan to partially finance the development cost of The Estates project.PHDC general assembly approved a EGP150.0 million financial lease contract with ICLE.NBE achieved a pretax profit of EGP48.58 billion in 9M22, compared to EGP48.26 billion in the same period last year. While the third quarter witnessed a pretax profit of EGP22.77 billion, compared to EGP19.08 billion by the end of September 2021.CI Capital and Compass Capital are launching a fund to invest in EGX-listed companies, with initial investments ranging between EGP 2-3 billion.ValU has partnered with the financial services technology startup “Sympl” to provide short-term soft payment solutions to its customers. Live poultry prices rose this week by EGP6/Kg to reach EGP60/Kg from the farms despite the drop in feed prices on shortage in supply.The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts amid government plans to localize electronics assembly.MHOT reported 1H22/23 revenue of EGP398.8 million, up 65.0% y/y, and net profit of EGP347.2 million, up 129.7% y/y.Egypt’s Pharmaceutical and cosmeceutical exports grew by 38.8% YoY in 2022 to stand at USD968 million, compared to USD697 million in 2021.
Technical Analysis

Technical Analysis

2023-01-2401:13

Market Overview Prepared by: Mayada Amin - CETA, CFTe
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