Pre-Trading Thoughts

We issued this morning our equity strategy for 2022, titled "Weathering Global Dynamics"Omicron is leading global front pagesCBE will repay ST external debt obligations of USD18.9 billion in FY21/22Emirati deposits with a total value of USD5.7 billion dollars have been extended over tranches to mature over 2022-2026Petroleum, iron, and steel led Egyptian exports in 9M2021 to reach USD29.7 billion (+40% YoY); Egyptian imports increased by 16% YoY to record USD61 billion over the same periodEgypt is close to obtaining a USD3 billion loan to use part of it to finance sustainable projectsEgypt and Jordan will double the capacity of the electricity link between the two countries to 1 GWBrent prices rebounded from Friday’s plunge (USD72.20/bbl)ORAS’s share in the new green hydrogen project could reach 25%; Expected to operate by the beginning of 2024Minister of Petroleum and Mineral Resources stated that the ministry is studying the feasibility of a natural gas pricing formula for the industrial sector, that would be applied every 3-4 months; Frequent revisions could be beneficial for local producers and result in sustainable long-term marginsESRS commented on the acquisition: No acquisition until an IFA report and legal audit are completeInsurance companies’ premiums grew by 29.3% YoY in 9M 2021, to record EGP37.58 billion, in parallel with the rise in total real estate financing to USD5.5 billion (+170.5% YoY)Microfinance lending also increased to EGP24.38 billion (+36.5% YoY); Financial leasing contracts reached EGP58.18 billion (+44.6% YoY)Financial Supervisory Authority to start an investigation on the conflicting disclosures by SPMD related to the acquisition of Prime Speed and Al Safwa HospitalGB Lease is planning a multi-tranche EGP1.6 billion securitized bond issuance in DecemberNo intentions to change ETEL’s (FV: EGP18.00, OW) stake in Vodafone EgyptHotel prices on the Red Sea increased 20.0%-30.0% q/q in 3Q21, supported by an increase in occupancy rates to 90.0% in Hurghada and 70.0% in Marsa Alam