Pre-Trading Thoughts

The Egyptian economy grew at a 6.2% clip in FY2021/22, up from 3.3% the previous year, as positive growth was recorded across all sectors.Egyptians' remittances rose by 7.7% YoY during 4M2022 to reach about USD11.1 billion. In April, remittances recorded 24% growth, registering USD3.1 billion.Egypt purchased 444,000 tons of Russian, French, and Romanian wheat directly from traders, for delivery in September and October.The CBE issued the new and first EGP10 plastic banknote.Egypt and the UAE are to sign an agreement following the Eid Al Adha holiday to establish a 10 GW wind plant.OCDI submitted a non-binding offer for the potential cash acquisition of up to 100% of MNHD through a mandatory tender offer. The non-binding offer offers an indicative purchase price range of EGP3.20/share to EGP3.40/share. We view this indicative price range to be reasonable given our FV for MNHD is EGP3.26/share which falls almost exactly in the middle of the offer’s indicative price range. We remind you that BINV holds a 7.50% stake in MNHD.According to local media, TMGH started construction in its Noor project.TALM 9M21/22 total revenue came in at EGP597 million, up 2% YoY. Net income reached EGP277 million, up 21% YoY.Oil prices declined in late Tuesday’s trading session. Brent futures are currently trading at USD104.40/bbl.HRHO is managing seven offerings in the Gulf area, out of which four-five are expected to be completed in 2022. Contact Financial Holding signed an agreement with Toothpick to offer dentists credit lines of up to EGP100k for supplies, equipment, and training.Local mobile manufacturers obtained preliminary approvals to import production components.