Pre-Trading Thoughts

Correction: The PM referred to the coordination with Paris Club and some Arab states back in the early 1990s, which had resulted in the debt relief of USD43 billion of Egypt's external debt through a multi-year program that is still in effect, including a debt-investment swap, but did not refer to a "recently reached agreement" on this regard.The state ownership policy document is “nearly final.” The government has amended about 30% of the document after receiving feedback from private sector representatives through public consultations.The government wants to work with the private sector to establish an industrial development strategy within three months.The state IPO program is alive and well, but there have been three years of exceptional circumstances that have hit the EGX hard, the PM said, adding that the government is taking this time to do its due diligence and value state assets appropriately.The Egyptian Competition Authority is working on developing a competitive neutrality index through which it can measure the success of its strategy to promote and enforce competitive neutrality.The Communications Ministry plans to restructure incentives to foreign companies to get them to set up shop or export their digital operations in Egypt.The government is looking into introducing a scheme that would grant foreigners long-term Egyptian residency permits if they invest in property in Egypt.New currency derivatives are expected to be ready within months to allow investors to hedge against the risk of further currency depreciation.Filling station Wataniya and bottled water company Safi will see a private stake sale before year end, Sovereign Fund of Egypt CEO said.ORHD received a preliminary non-binding offer from OCDI for the potential acquisition of the entire share capital of ORHD’s subsidiary, Orascom for Real Estate S.A.E. (ORE), the owner of O West. ORHD owns 70% of ORE. The non-binding offer includes an indicative and preliminary equity value purchase price of EGP2.46 billion for 100% of ORE. ORHD’s Board has granted OCDI exclusivity to commence the due diligence process. The non-binding offer price implies EGP1.7 billion for ORHD’s 70% stake in ORE.ABUK 1Q22/23 net profit increased to EGP2,777 million (+33% QoQ , +115% YoY).RTVC received a preliminary offer from the National Company for Hotels and Touristic Services (Tolip) to acquire RTVC’s Stella Sharm Hotel for EGP700.0 million. ALCN 1Q22/23 net profit increased by 98.7% YoY and 0.3% QoQ to record EGP669 million.China reported economic growth of 3.9% for 3Q2022, which was higher than analysts expected and might inject some fresh optimism into oil markets with regard to demand. Still, 3Q2022 growth figure remains below the government’s target of 5.5%. However, it was a substantial improvement over 2Q2022, when GDP growth stood at 0.4%.New and Renewable Energy Authority will receive bids for the construction of a 20 MW solar power plant in Hurghada till end of January. The tender includes the implementation of a solar PV-battery system with a capacity of 30 MW.RAYA acquired a stake of 10.27% in its subsidiary, Raya Haier Electric, at a transaction value of EGP47.7 million, bringing its ownership in the company to 100%.Pharma giant Novartis signed a licensing agreement allowing local manufacturers in seven countries, including Egypt, to make the oral medicine Nilotinib.Weekly Commodities Update |   | Last Price | WoW Change, % | Brent, USD/bbl | 92.9 | 0.4% | Diesel-HSFO Spread, USD/ton | 754.8 | -1.3% | Egypt Urea, USD/ton | 760.0 | 0.0% | Polyethylene, USD/ton | 1,160.0 | 0.0% | Polypropylene, USD/ton | 1,030.0 | 0.0% | Steel/Iron Ore Spreads, USD/ton | 470.6 | -4.0% | LME Aluminum Cash Price, USD/ton | 2,188.5 | -1.8% | Egyptian Retail Cement,