Pre-Trading Thoughts

Macro Backdrop for 2022| Growth will gradually recover to 5.5% in FY2021/22; inflation rate to record 6.9% in FY21/22; CBE might raise rates for a total of 100 bps-150 bps in 2022 and 2023; EGP broadly stable, with mild depreciation; CA deficit will shrink in FY2021/22 to USD12.5 billion; fiscal deficit declining to around 7% of GDP in FY2021/22 with 1.5% primary surplus; government debt to decline to 88.8% to GDP in FY2021/22; Main downside risks to the outlook include global developments The Spanish government could provide EUR400 million in credit facilities for joint projects in Egypt, in transport, renewable energy, water and sewage treatmentInvestors can now establish blank-check firms in Egypt after Financial Regulatory Authority’s (FRA) rules and regulations for SPACs were published in the Official GazetteFRA is looking into revising the regulations governing compulsory de-listing for companies that are being liquidatedThe government is finally preparing to launch the auto industry strategy before the end of this yearExporters of ready-made garments, textiles, furniture, and household appliances have expressed concerns about the significant weakness in Turkish Lira and Egypt’s export competitiveness  EFID signed an amicable settlement agreement with Chipita; The settlement will not affect the profits of EFIDDSCW released positive 9M21 net profit recorded EGP17.4 million, compared to a loss of EGP59 million in 9M20; 3Q21 net profit of EGP12.6 million, on the sequential basis, margins are pressured YoY by higher expenses, Dice has a potential capital increase of EGP265 million, which might negatively impact stock price performance and FVEFIH officially launched its digital healthcare services platform e-Health; EFIH owns 35% of the company’s shares, and the Universal Health Insurance Authority owns 50%NBE, Banque du Caire, and Banque Misr are planning to launch a new fund to invest in fintech startups before the end of the year and intends to reach USD85 mn first close[Clarification and Amendment] Aspire Capital Holding 9M21 attributable net profit (excluding net profit from discontinued operations) recorded EP33.9 million, compared to losses of EGP58.1 million last year; Stock is trading at annualized 2021 P/E of 6.3x and annualized 2021 P/B of 1.1xEGAL reduced its domestic selling prices by EGP4,000-5,000/ton to EGP52,000-64,000/ton; due to cancellation of import tariffs and a relative slowdown in prices during November by about USD300/tonIRON GAM agreed on changing the company's landbank licenses from industrial to residential and utilize its value to pay back outstanding debts and liabilities of c.EGP11.25 billionRTVC reported a 3Q21 net loss of EGP68.5 million, compared to 3Q20 net profit of EGP135.3 million; 9M21 bottom line recorded a net loss of EGP334.4 millionEgyptAir has suspended, until further notice, direct flights to and from Toronto starting today