Pre-Trading Thoughts

The price of subsidized sugar will increase to EGP10.5 per kg Starting January 2022, up from EGP8.50 currently (23.5%), Supply Minister Ali Moselhy said.Foreign investments in Egyptian T-bills declined by about 8% MoM in October to reach EGP347.6 billion (USD22.14 billion) down from EGP378.2 billion (USD24.1 billion) in September.Egypt expects to import 5.3 million tons of wheat in 2022, 4% less than the quantities of 2021.The government plans to sell shares in power plants it built in partnership with Germany's Siemense.The government has repaid USD39 million of dues to the UAE “Dana Gas" in December, bringing the total amounts owed to the company to less than USD30 million.The Lebanese presidency said that the Egyptian gas is expected to reach to reach Lebanon by the end of February.MTIE disclosed that Ebtikar, a joint venture between MTIE and BINV, acquired 39.9% of the shares of Bee, thus increasing Ebtikar’s ownership from its current stake of 60% to reach 99.9% through a share swap into Ebtikar shares, resulting in a decrease in MTIE’s stake in Ebtikar from 49.9% to 40.5%.FRA approved EFIH capital increase, bringing paid-in capital to EGP888.89 mn (an increase of EGP88.89 mn, distributed on 177.78 mn shares). Three international tobacco companies withdrew from bidding for the new cigarette licenses, in objection to the terms of reference. Which maintains competitive and manufacturing advantages for Eastern Tobacco and enhances its monopoly in the cigarette market.AUTO (FV: EGP 5.40, OW) aims to issue securitization bonds worth EGP 18.7 billion within 3 years, after it carried out yesterday a one-tranche securitization issuance worth EGP 1.645 for a period of 24 months.CIEB (FV: EGP40.00, OW) increased its authorized capital to EGP6 billion from EGP3.5 billion, it also increased its paid in capital from EGP1.2 billion to EGP 5.0 billion through 3:1 bonus share financed from retained earnings. Record date is Wednesday 29 Dec, and distribution date is 30 Dec 2021.A banking alliance guarantees coverage of EGP 790 million securitization bonds for EFG Hermes Financial Solutions, Egyptian banking sector’s loans increased by EGP48.40 billion from August 2021 to September, where government loans increased by EGP22.7 billion and non-governmental loans increased by EGP20 billion.Total bank deposits in local currency also increased by EGP880.208 billion pounds, to reach EGP6.077 trillion as of September 2021, compared to EGP5.196 trillion as of December 2020 (+17% YTD)Ministry of Tourism has decided to temporarily stop accepting applications for the establishment of new tourism companies.