Pre-Trading Thoughts

The Saudi Ministry of Finance deposited USD3 billion with the CBE and extended the term of another USD2.3 billion in previous depositsNFAs of the banking system increased by EGP15.7 billion (around USD1 billion) at the end of September 2021, to record EGP174.53 billion (USD11.12 billion)All eyes are on the Fed ahead of its two-day meeting, expected to announce the winding down of its USD120 bn a month asset purchase program Policymakers are considering extending the automatic pricing mechanism to gas supplied to the industrial sector; Fair values will settle at middle grounds: ABUK at EGP26.83, EKHO at USD2.06 (EGP32.30), MFPC at EGP123.56, and ESRS at EGP14.83 ABUK 1Q21/22 net profit hit EGP1,290 million (+88%YoY, +20%QoQ) on Urea prices; ABUK is trading at FY21/22e P/E of 7.3x and FY21/22e EV/EBITDA of 4.0x The Ministry of Petroleum initiated construction in the Coal and Diesel production complex, at the Suez Refinery, with an investment cost of USD1.77 billion SVCE expects natural gas price hike to lead to a 30-50% increase in the company's costs Ministry of Finance is launching a digital VAT payback system for tourists; e-finance and its subsidiary “e-Tax” look set to be involved EFID rebranded Twinkies SKU portfolio introducing a higher price point; We expect 3Q21 bottom-line of EGP103 million; EFID is currently trading at 2022 P/E multiple of 11.0x and EV/EBITDA multiple of 7.0xOLFI is expected to release 3Q21 bottom-line of EGP99 million (flat YoY); OLFI is currently trading at 2022 P/E multiple of 6.5x and EV/EBITDA multiple of 4.6xDOMT to increase its investments by EGP100-150 million in 2022, to purchase new production lines; intends to increase the prices of its products by an average of 4-5%TALM reported EGP185.3 million in net income during FY2020-21, up 29% YoY A final draft on real estate sector regulation has been prepared by the Ministry after consultations with real estate developers MERIS has maintained its A+ rating on TMGHZMID proposing a capital increase from EGP264.0 million to EGP500.0 million through bonus shares; Looking to co-develop 34 feddan New Heliopolis land plot that it had bought from HELIAl-Futtaim is considering increasing residential selling prices in Cairo Festival City by up to 12.0%Starting today, five-star hotels in Egypt are required to charge a minimum of USD40/night, and four-star hotels in Egypt are required to charge a minimum of USD28/night Al Muhaidib Company is in the midst of an international arbitration case and two administrative cases against IDHC, Hend El Sherbini, and Moamena Kamel related to 2007 MoU; Not on solid legal grounds