Pre-Trading Thoughts

El-Sisi announced that he will not be extending the national state of emergency MoF will not make any budget amendments to respond to higher global energy and food pricesMNHD appointed Abdallah Sallam as its new CEO; approved acquiring MINKA Developments from the Sallam family and an EGP374.4 million capital increase through a rights issueTour operators in Russia are reporting record demand for flight and hotel bookings to Sharm El Sheikh and HurghadaEFIC 9M21 standalone: Bottom line reached EGP91 million, + 144.8% YoY; EFIC at 2021 P/E of 6.8 and EV/EBITDA of 4.9xPACH is considering raising their local selling prices, due to higher cost of raw materials; PACH at FY21/22 P/E of 6.7x and EV/EBITDA of 5.5xALCN released 1Q21/22: Net profit hit EGP336 million in 1Q21/22, a YoY rise of 21.1%; Number of containers handled at 181 thousand container in 1Q21/22 (an all-time low); ALCN at a FY21/22 PE of 8.6x and an EV/EBITDA of 7.9xEFID’s profitability will not be negatively impacted by purchasing power, management to maintain its profitability levels and the value of its revenuesSPMD targets a net profit of EGP500 million in 2022Orange Egypt plans to invest USD300 million in Egypt in 2022Hermes Financial Solutions intends to issue securitization bonds worth EGP 700 million Commodity update:The Egypt urea index was up 7% w/w and prices are currently at USD845/ton (ABUK, MFPC, EKHO)Polyethylene (HDPE) prices were up 2% w/w and prices are currently at USD1,340/ton (SKPC)Diesel-HSFO spreads were up 2% w/w and are at USD273/ton (ERC)Caustic Soda prices continued its rally, reaching USD534/ton higher w/w by 2.3% (MICH)LME 3M Fwd Aluminum prices declined -10% WoW to record USD2,868/tonne (EGAL)Steel/Iron Ore spreads are at the USD445 mark, rising by 4% WoW (ESRS)Thermal coal prices rose by 5% WoW recording USD246/tonne (Cement costs)Polypropylene prices increased by 5% WoW and stood at USD1,420/MT (ORWE costs)Crude palm oil prices stood at USD1,139/MT, up 3% WoW (DOMT, OLFI costs)SMP prices increased by 3% to USD3,401/MT (JUFO, DOMT, OLFI costs)