Pre-Trading Thoughts

Remittances from Egyptians abroad were up 1.5% YoY to USD 8.1 bn in 1QFY21/22. September was a slow month, with remittances dipping 3% YoY to USD 2.6 bn. The private sector will be given a six-week grace, until mid-February from the new private-sector minimum wage requirement (EGP2,400).Gas and electricity prices have hit new record highs in Europe, threatening economic recovery and putting industries on the brink of shutdown, as Russia restricted gas flows to Europe compounding shortages already aggravated by nuclear outages in France. This will keep some commodity prices high until mid-2022 (Urea and Aluminum).Suez Canal Zone has signed a land-use contract with The International Company for Methanol and Its Derivatives, which is partially owned by ABUK (35%).The government had received offers from 5 companies and consortiums to produce green hydrogen.Oriental Weavers will invest USD15 million in 2022, to add new looms and machinery that will raise the efficiency of factories, compared to USD26 million spent in 2021.Prime Minister held a government meeting to discuss the national strategy for the automotive industry and directed dialogue with local assemblers.Tobacco producers did not receive any response from the Ministry of Trade and Industry on the three withdrawals from the race for the new tobacco license. The government is currently studying a few proposals to support "strategic industries" including spinning and weaving and the electric car production industry.