Pre-Trading Thoughts

The Central Bank decided to extend the deadline for the precautionary decisions to face the repercussions of the pandemic until June 2022 exempting banking clients from all fees and commissions. The decisions included extending the duration of the two initiatives to support tourism until December 2022.The Ministry of Petroleum signed an exploration agreement with the Italian "Eni" with a total investment of at least USD1 billion.The PM said that the petroleum subsidy bill jumped during the 1Q2021/22 by 79% YoY, to reach EGP6.9 billion, driven by subsidizing butane.FWRY (FV: EGP17.00, OW) announced plans for establishing a consumer finance company, with an initial capital of EGP 10 million and is fully owned by Fawry. At 10x P/B, the subsidiary is worth EGP0.06/FWRY share, so it is not at this stage a key valuation driver for the stock, but rather a seed for diversification of revenue streams.The National Bank of Egypt, Banque Misr and Banque du Caire are preparing to launch an investment fund specialized in supporting Fintech startups, with initial fund size of USD85 million.97 Egyptian building material producers and contractors will participate in a mission to Libya to discuss the contribution to reconstruction.ORAS, Hassan Allam and Samcrete have requested the CBE to finance the strategic warehouse projects, for EGP3 billion, at an interest rate of 8% and a repayment period of 15 years.EAST (FV: EGP17.60, OW) is studying the closure of the Abu Tig and Talbeya factories, which are specialized in molasses production, with the aim of concentrating the entire production, within the existing industrial complex in the 6th of October City. CIRA (FV: EGP20.00, OW) announced the dates for its DPS of EGP1.00/share (DY 7.2%), with record date of December 23 and distribution date of December 28.CLHO's (FV: EGP6.40, OW) BoD decided to sell the 16,948,142 treasury shares held, at EGP5.00, through the voluntary tender offer, which closes end of trading day today.ZMID's GAM approved raising capital by EGP264 million to EGP528 million, through a 1:1 rights issue at par, financed from retained earnings.ELSH's BoD approved raising capital by EGP45.4 million to EGP226.875 million, through a rights issue at par, financed from retained earnings.