Pre-Trading Thoughts

The Federal Reserve enacted its second consecutive 0.75 percentage point interest rate increase, taking its benchmark rate to a range of 2.25%-2.5%.Minister of Finance said that the government might issue local Sukuk at the present time, given the current adverse conditions of international markets, worth USD500 million to USD1 billion.Egypt is working to resolve differences with the IMF in talks for a fresh assistance program, the Minister of Finance said, adding that talks have two different perspectives, but made very good progress. The Minister said the government hopes to reach an agreement by December.The government is still holding out hope that it could sell stakes in as many as 10 companies before the end of the year, the Minister of Finance said.British International Investment, the UK government’s development finance arm, is planning to invest USD6 billion in Africa, inc Egypt, over the next five years.Abu Dhabi Holding "ADQ" is considering acquiring a stake in Delta Sugar, as per Economy Plus.OLFI’s attributable net profit recorded EGP90.2 mn, a YoY climb of 21.6% and a minor QoQ decline of 0.4%, leading to a NPM of 10.3%, versus 11.6% in 2Q21 and 9.8% in 1Q22. OLFI is currently trading at a FY22 P/E of 6.0x and an EV/EBITDA of 5.2x.DOMT submitted 5 projects in the food sector for the industrial integration initiative between Egypt, the UAE, Jordan, and Bahrain, as part of efforts to localize food industries in the initiative countries.Egyptian government agencies signed an MoU with Indian renewables company ReNew Power to establish a green hydrogen plant in the Suez Canal Economic Zone (SCZone) for USD8 bn.OCDI achieved solid 2Q22 sales of EGP2.9 billion, up 53.9% y/y and down 21.4% q/q, bringing 1H22 sales to EGP6.7 billion, up 77.4% y/y. Net profit in 2Q22 reached EGP65.0 million, down 46.7% y/y and 71.2% q/q.HELI’s Board approved the budget for the period 1 July 2021 - 31 December 2022, forecasting revenue of EGP2.5 billion and net profit of EGP0.9 billion.The hotel company that is to merge seven or eight state-owned hotels could debut on the EGX in November 2022. The state plans to offer 10%-15% of the company on the EGX and sell an additional stake to a strategic investor.Customs authorities released 60% of the passenger car shipments that were detained in the ports during the last period.CIRA’s future flow securitization program has been approved by Financial Regulatory Authority (FRA), which has given EFG Hermes the final go-ahead to take EGX-listed education provider CIRA’s planned EGP 800 mn issuance to market. ETRS has completed the procedures for establishing a subsidiary company in SCZone for the storage of used cars.