Pre-Trading Thoughts

Egypt’s annual urban inflation jumped to 32.7% y-o-y in March, up from 31.9% the month before. Core inflation stood at 39.5% y-o-y in March, down slightly from February’s record high of 40.3%.Yesterday, the spring meetings of the World Bank and the International Monetary Fund kicked off in Washington, DC, with the participation of Egypt’s Minister of International Cooperation.Chinese hydropower developer CTG wants to invest in local renewable energy, desalination, water pumping, and green hydrogen projects.China Energy could start working on a USD 5.1 bn green hydrogen facility in Egypt next month.GAFI intends to launch the digital platform for establishing companies in Egypt in July, which is in addition to a comprehensive map of all investment opportunities across Egypt.QNBA 1Q23 net profit pre-minority interest and appropriations recorded EGP4,715 billion (+56% q/q, +114% y/y). The stock is currently trading at 2023 multiples of P/B of 0.6x and P/E of 3.8x.National Paints Holding (NPH) raised its offer to acquire 100% of PACH’s shares to EGP39.80 per share, up from its previous EGP37.75/ share.EGAL released its adjusted budget for FY2023/24 targeting a net profit after tax of EGP3.1 billion (previously EGP3.5 billion) vs. EGP2.50 billion recorded in FY2021/22 and an estimated figure of EGP3 billion in FY2022/23. The budget is planned on average exchange rate of EGP30/USD.The National Authority for Tunnels is preparing to assign new projects worth EGP17 billion to a number of contracting companies, in the high-speed train project “Ain Sokhna-Matrouh”, including the construction of 15 bridges.Foreign cruise ships are getting a 50% discount on service fees and an exemption from local port authority fees at Egypt's ports. Cruise operators must pay their fees in USD.EgyptAir is launching a new route to Bangladeshi capital, Dhaka, on 14 May 2023, with two weekly flights.RMDA’s shareholders approved the distribution of 0.507 bonus share for each original share held, brining paid in capital to EGP380 million distributed over 1.52 billion shares at a par value of EGP0.25 per share.RACC’s shareholders approved not distributing dividends out of 2022 profits.