Pre-Trading Thoughts

*Key news articles for today*The UN International Fund for Agricultural Development and partner organizations will provide USD2 billion in financing to enhance food security in Egypt. Funding will be channeled to the Egyptian government through loans up to a year 2030.The IMF’s Middle East and Central Asia boss has praised the CBE's policy recent moves, saying that the shift to a flexible exchange rate will protect the economy against external shocks and calling the decision to raise interest rates a step in the right direction.The IMF expects Egypt's international reserves to rise to USD41.4 billion next year, and to end 2022, at levels of USD33.1 billion.The IMF has raised its forecast for economic growth in MENA to 4.9% in 2022, up 0.5 percentage points from its April outlook, in part reflecting a stronger-than-expected performance for Egypt during fiscal year 2022.ESRS has raised the price of rebars by EGP 1,980/ton to EGP 19,650/ton (including VAT) as of November 1, 2022, 11% higher than month of July.EGAL recorded strong 1Q22/23 KPIs. Net profit after tax recorded EGP643 million 111% higher YoY, 21% lower QoQ). The YoY surge in profits came on the back of enhanced margins supported by lower production costs.The YoY increase in revenues was mainly backed by weaker EGP which lost around 22% of its value relative to the USD vs. comparative quarter. However, the cooling off in most commodities prices in the last few months pulled down revenues 7% QoQ. Cost of sales dropped during the quarter (-8% YoY, +2% QoQ), based on what the company said to be the result of the flexible strategy in dealing with the metal price in the market and the prices of main raw materials.Accordingly, gross margin remained healthy at 26.2% in 1Q22/23. Stock is currently trading at FY22/23 P/E and EV/EBITDA of 5.7x. Intro Group subsidiary, Intro Power and Utilities, will build a 20-MW solar farm at Suez Cement’s Suez plant based on a purchase power agreement (PPA) signed yesterday by the two firms. The plant is scheduled to become operational in 1H2023, with construction set to begin early next year. The station will be connected to the national grid in 2H2023. ORAS, Toyota Tsusho, and Engie broke ground yesterday on their new 500 MW wind farm in Ras Ghareb, Egypt. The three companies signed a 20-year contract with the Electricity Ministry to develop, construct and operate the plant in October 2021. OC owns a 25% stake in the project and is responsible for building the plant. Implementation is expected to take 30 months. EFIC issued its standalone results for 9M22. Net profit after taxes amounted to EGP293 million compared to EGP91 million last year, up by 2.2x YoY. Net Profit Margin registered 23.7% compared to 12.22% in 9m21.  EFIC is trading at 2022 (consolidated estimates) P/E of 2.8x and EV/EBITDA of 1.2x.   Minister of petroleum Tarek El-Molla stated yesterday in a TV interview that: Egypt current natural gas daily production amounts to 6500 million cubic meters. The ministry targets to achieve investments of USD8 billion in the oil and gas fields through FY22/23 Egypt's oil and Gas sector targets exports of USD12 billion this year, compared to USD7-8 billion in 2021Egypt will increase its exports to Europe in the winter season.  IDHC and its Jordanian subsidiary, Biolab, will launch greenfield diagnostic venture in Saudi Arabia in partnership with Izhoor Medical. Key highlights:The new joint venture will be owned 50% by IDH Group (30% controlled by IDH and 20% controlled by Biolab), with the remaining 50% owned by Izhoor.The proposed transaction has an estimated investm