Pre-Trading Thoughts

The EGP moved against the USD in local banks yesterday to record 18.37-18.47/USD.The General Authority for Supply Commodities (GASC) set a "limited tender" for the first time in years, to buy an unspecified amount of wheat from only European import origins. The Egyptian Businessmen Association is preparing a proposal to open accounts in Russian Rubles for Egyptian importers and exporters to Russia.Prime Minister met with EGX Chairman to review the proposed plan to encourage investment in the stock market and attract foreign investments.Ministry of Housing plans to tender 5 seawater desalination plants on the Red and Mediterranean coasts, at an initial investment of EGP6 billion (USD325 million) in partnership with the private sector (PPP). QNBA 1Q22 net profit pre-minority interest and appropriations recorded EGP2,208 billion (+28% q/q, +12% y/y). The stock is currently trading at 2022 multiples of P/B of 0.7x and P/E of 4.3x.FAIT released positive 1Q22 standalone financial indicators where net income grew by 118.6% y/y recording EGP1.2 bn. FAIT is currently trading at P/E22 of 3.9x and P/B22 0.5x.ATLC aims to add net financing of EGP3.5 billion in 2022.The local securitization market has stepped up a gear with corporate issuances at EGP9.2 bn in 1Q2022 — 58% of the EGP 15.8 bn taken to the market in 2021.The Senate approved yesterday the Unified Insurance Act and once passed in the House.Cell phone importers have reduced the quantity supplied to distributors by 60-80% on supply shortages and slower global shipping (MTIE).Nigerian fintech player OPay plans to expand its footprint in Egypt, launching pre-paid cards and linking up with the CBE’s new digital payment app. ETEL is to distribute a DPS of EGP1.00/share implying a DY of 6.0%. ABUK's BoD called the ordinary general assembly to distribute EGP2.00/share, DY of 8.4%.PHAR declared a DPS of EGP3.00 per share (DY of 8.1%).ELKA Board approved purchasing treasury shares of up to 5.0% of shares.Air Arabia Egypt is running flights between Cairo and Dammam starting 26 April 2022.*Weekly Commodities Update*Brent futures are trading at USD100.23/bbl and averaged USD98.39/bbl YTD.Egypt Urea Index was unchanged WoW at USD1,130/tonPolyethylene (HDPE) prices were down 1% WoW to USD1,550/tonDiesel-HSFO spreads were down 8% WoW to USD445/tonPolypropylene prices climbed WoW by 0.8% to reach USD1,340/MTSteel/Iron Ore spreads inched up 1% WoW to record USD625/ton Aluminum prices stood at USD3,375/ton lower WoW by 2% Retail cement prices in Egypt were stable at EGP1,350 -1,450 per tonSteam Coal prices surged 13% WoW to record USD292/tonCrude palm oil prices climbed to USD1,518MT, +6.01% WoWSMP prices rose by 1.2% to reach USD4,599/MT on the 5th of April 2022