Pre-Trading Thoughts

Egypt is expected to join the JP Morgan bond index for emerging markets by the end of January 2022Egypt has emerged as one of Turkey’s most important LNG suppliers so far in 4Q2021, shipping seven cargoes since the beginning of OctoberIRAX BoD announced its approval of the acquisition of 18% of Egyptian Steel for EGP2.5 bn; Transaction will be financed from internal resources, with 50% of the value to be paid upon execution and the rest will be paid in two equal installments over two years; If we apply those multiples on ESRS, then the stock will be worth EGP50-60/share, and IRAX will be worth EGP1,600-1,850/share. Consequently, we do value the transaction from a strategic point of view and see the rationale behind it in terms of market positioning, but we believe that the valuation is very richRegulation covering the real estate sector 1) warns against projects launching before obtaining ministerial approval of project/phase masterplan, 2) requires developers to deposit in the bank a monetary amount associated with the phase/project in line with the phase/project’s size, 3) requires developers to submit half-year accounting reports showing collections and expenditure for the phase, 4) requires developers to keep 5.0% of collections for the phase as a reserve in the bank, and 5) governs unit delivery delaysThe New Administrative Capital Company started procedures regarding its upcoming IPO, which is expected to take place in around two yearsMinister of Electricity said that the government has received several offers from foreign contractors to produce green hydrogen from solar power plants and wind power plants, as well as projects to desalinate water using renewable energyTwelve local and international companies have purchased the conditions handbook for the development and modernization of power plants in the High Dam and Aswan ReservoirCBE extended the exemption on enforcement of the loan portfolio concentration limits to the largest 50 clients until the end of December 2022AMIA is in the final negotiation stages of two acquisition deals in the entertainment and food industries sectorsMahmoud Lasheen’s ownership in SPMD went down to 15.693% (-7.08%), after an enforced sale due to margin trading