Pre-Trading Thoughts

MSCI EM Index rebalancing announcement will take place tonight, with expectations, based on FF market caps, that HRHO will replace FWRY within the standard index and COMI's FF weight will go down to 75%, from 85%.The press conference to announce new details of the state’s response to the economic turmoil fallout from Russia’s war in Ukraine will take place early next week. Might unlock IMF funding.Cabinet approved a plan by the Finance Ministry to broaden its green financing framework to include sustainable development bonds, allowing the state to raise money for a wider array of social and environmental projects.The Minister of Finance said that Egypt aims to issue Yuan-denominated bonds in the Chinese market, to diversify funding sources, and attract new investors.The EGP strengthened against the USD yesterday, jumping to EGP18.42/ USD from EGP18.53 on Tuesday.The Customs Authority has set 16 May as a deadline after which all entities in Egypt are not allowed to raise documents or data for shipments exported to Egypt through the Nafeza platform on their own or on behalf of the foreign exporter.World Bank: Remittances from Egyptian expats are expected to grow at a faster pace in 2022, rising by 8% to USD34 billion.Dana Gas stated that Egypt paid USD17 million dues to the company during 1Q22, noting that the unpaid amounts decreased to USD31 million.German fiberboard producer Homann Holzwerkstoffe is acquiring a 27% stake in Egypt Kuwait Holding (EKH)’s subsidiary Global MDF Industries. Egypt inked a memorandum of understanding with an alliance that includes Total Energies (in which BINV holds a 6.38% stake) and Africa-focused SME investor Ennara Capital to build a green ammonia plant.FWRY participated in a USD9.6 mn equity funding round for the Cairo-based startup “Mylerz” and will also provide payments services for the company. ORHD expects to raise selling prices in Makadi Heights by 25% in FY22 and plans to deliver 1,000 units in Makadi Heights across FY22 and FY23.Many vehicle manufacturers declared that banks started approving LCs for importing the needed components for local car assembly (CKDs).Prices of all cars in the "Go Green" government initiative increased by 28k-75k/unit, affected by the recent currency devaluation. The new prices will come into effect as of next Sunday. Minister of Trade and Industry agreed to release all passenger cars that are being held by the customs authority after their prices are completely paid to the exporter. SME and consumer borrowers who fail to meet their repayments could face jail time and fines under amendments to the consumer finance and micro finance laws. These changes follow FRA's decision not to ask SME or consumer finance clients for IOUs. Building materials’ exports to Libya surged in the 1Q22, in light of the improving security situation in Libya, especially cement and steel. [Old News] Denmark’s Cimbria is building a wheat silo complex in Port Said for the General Company for Silos and Storage (GCSS). The facility will have the capacity to hold 100k tons.  The Government has approved the acquisition and investment requests submitted by the private sector in the healthcare sector, given that the acquired stake is less than 10%. We believe that the Healthcare sector in Egypt is trading at depressed multiples, which might trigger some acquisition potential. Check Pitch.