The National Elections Authority (NEA) announced the timetable for the upcoming presidential election, confirming that the voting process will start as early as the first of December.

Egypt seeks to increase the Asian Infrastructure Investment Bank (AIIB) investments portfolio in Egypt to USD2.3 billion up from the current USD1.3 billion.

The government, represented by the General Authority for Investment and Free Zones, aims to decide on 45 new applications to obtain the golden licence to encourage investments in a number of targeted sectors.

Bloomberg’s USD spot index climbed 0.4% to hit its highest level since December. Since mid-July, the USD has climbed more than 6% against major currencies as markets react to the prospect of US interest rates remaining higher for longer.

We published this morning our update on Egypt's fertilizer sector. The sector is expected to witness a slowdown through 2024 after the exceptional achievements it reached between 2021 and 2023. However, fertilizer producers’ profitability is supported by the pound devaluation movements and the new expansion projects. MFPC is our top pick thanks to its privileged natural gas cost formula and the new projects it will undertake.

Our Fundamental Review includes the following:

• ABUK (FV: EGP60.60, EW)

•MFPC (FV:EGP250.67, EW)

• EGCH (FV: EGP7.48, EW)

• EFIC (FV: EGP55.59, EW)

For further details, please refer to our report published this morning.

The Petroleum Ministry launched an international bid round for gas and oil exploration in 23 new areas with the offer deadline set for February 25.

Kima denied receiving an offer from gulf investors to acquire a stake in the company.

We upgrade our FV for DSCW to EGP0.71/share from a previous EGP0.57/share and changed our recommendation to Overweight: 

• The main driver for our update is the multiple waves of local currency depreciation, with another leg in the cards. Weak Egyptian pound supports the company’s top-line and margins as its export segment constitutes the majority of its sales at 55-60%. Margins are also supported as 50% of COGS are in EGP, with the difference giving margins a boost. 

• DSCW is currently trading at a FY24 P/E of 0.21x.

• For further details please refer to our note published earlier today.

 Local private equity firm Ezdehar plans to purchase up to four of Alfa Market’s stores in Cairo to expand the presence of Zahran Market, one of its portfolio companies.

A consortium of ORAS (FV: EGP181.70, OW) and Metito, together with the Abu Dhabi National Oil Company PJSC (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA), achieved the successful financial close in record time for a large-scale seawater treatment and water transportation project in Abu Dhabi, UAE.

The Ministry of Transport intends to pay compensation for price differences to contracting companies for the projects of its affiliated organizations, with a value of around EGP15 billion by the end of this year.

The government divested its investment in IRAX. Post the delisting, ESRS (FV: EGP54.60, OW) would own a 99.52% stake in IRAX.

Saudi Public Investment Fund intends to buy Arab African International Bank's 13.0% stake in PHDC (FV: EGP4.35, OW). 

ORHD (FV: EGP20.38, OW) sold 15.5 million treasury shares for EGP155.5 million.

The FRA approved the establishment of Abu Dhabi Islamic Sukuk Company with issued and paid-up capital of EGP10 million, where ADIB - Egypt has a stake of 98%.

CNFN intends to issue securitization bonds worth EGP1.4 billion in a matter of days.

BTFH has completed the transfer of its ownership in Cash Microfinance Company in a deal worth EGP120 million.

CBE data showed an increase of 5.4% in the total banking sector loans from January to April 2023. Total deposits expanded by 1% over the same period.