Pre-Trading Thoughts

The cabinet has approved a resolution regarding the issuance of executive regulations for the hospital privatization bill.The cabinet approved a draft resolution to set up the National Council for the Localization of Chip and Solar Cell Tech Production The cabinet approved the suspension of the 14% agricultural land tax (known as the mud tax) for another year starting 1 August.Trade offices have attracted USD 11.6 bn in investments across different sectors. Most of the funds are destined for the energy sector. US inflation fell under the 3% mark in July for the first time since March 2021, strengthening the case for the Federal Reserve to cut interest rates at its next meeting in September. The World Bank revealed that Egypt received USD206 million out of a total of USD480 million in financing allocated by the Bank to reform education in Egypt. Tax revenues on treasury bonds and bills during FY 2023-2024 amounted to about EGP158.5 billion, an increase of EGP51 billion over the previous year.The value of the investments of the Norwegian sovereign wealth fund in Egyptian stocks fell to USD91.4 million at the end of June, compared to USD134.7 million at the end of 2023. EMFD reported solid 2Q24 net profit reaching EGP1.9 billion, up 51.6% y/y and down 66.6% q/q from the 1Q24 level that had been boosted by FX gains. HELI achieved strong 2Q24 net profit of EGP650.1 million, up 124.6x and down 13.1% q/q, bringing 1H24 net profit up 56.8x y/y to EGP1.4 billion. HELI Board approved starting procedures to acquire a 770 feddan land plot in Capital Gardens. GBCO released 2Q24 results with consolidated attributable net profit recording EGP422 million (-15.8% YoY, -32.6% QoQ).  ORWE reported solid 2Q24 financial results, with attributable net profit recording EGP812 million (+92.1% YoY, +183.4% QoQ).  HRHO 2Q24 net profit after tax and minority interest recorded EGP791 million (-57% q/q, +95% y/y). EXPA 2Q24 consolidated bottom line recorded EGP1,288 million, post minority interest (+18% q/q, +86% y/y, and perfectly in line with Al Ahly Pharos estimates of EGP1,285 million). CANA 2Q24 net profit pre-appropriations recorded an impressive EGP1.2 billion (+217% y/y, +96% q/q).  EGBE 2Q24 standalone net profit pre-appropriations recorded EGP696 million (+104% y/y, +30% q/q). ATLC  2Q24 net income recorded EGP35 million (+42% y/y, -8% q/q), bringing 1H24 net income to EGP74 million (+21% y/y). RAYA reported 2Q24 results. Net Income rose by 124% YoY in 2Q24 to stand at EGP323 million. POUL reported 2Q24 attributable net profit of EGP573 million (+176.5% YoY, +4.7% QoQ). PHAR attributable net profit dropped to EGP149 million in 2Q24 (-74% QoQ, -48% YoY).  ISPH issued 2Q24 financial results where net profit after taxes stood at EGP123.5 million (+25.8% QoQ, +107.7% YoY) in 2Q24.  EGAL reported solid KPIs for 4Q23/24 & FY23/24 with net profit after tax coming in at EGP4.1 billion in 4Q23/24, reversing comparative quarter loss of EGP225.4 million, 130% higher QoQ.MFPC released 2Q24 financial results posting a surge in net profit by 68% YoY (-67% QoQ) to EGP2.5 billion. EGCH announced that it is in the process of agreement with the lenders for financing part of the total investment cost of the nitric acid and ammonium nitrate project which equals USD313 million and EGP8 billion. Cabinet has approved an offer by ORAS, Toyota Tsusho, and Engie to add another 150 MW of wind power capacity to its 500 MW wind farm in the Gulf of Suez. The expansion is slated for completion in 2025.