Pre-Trading Thoughts

Egypt is rejoining JPMorgan’s Emerging Markets Bond Index (EMBI) today, Finance Minister said, which could potentially bring new passive flows into EGP-denominated debt. Egyptian bonds will have an estimated weighting of 1.8% in the index. Egypt will also become a constituent of JPMorgan’s green bond index with a weighting of 1.2%, he said.  Local Egyptian debt will not be listed on Euroclear until 2H2022 due to an unresolved “technical issue” between the government and the clearinghouse. Finance Ministry is looking to issue green bonds worth USD750 mn later this year. The government privatization program should resume in March 2022.Taqa Arabia, of CCAP, plans to list on the EGX by 2023; targeting investments worth EGP1.5 billion in 2022, on adding new petroleum and gas stations, solar and seawater desalination plantsSix consortia were short-listed as technically qualified for the development and modernization of the High Dam transformer stations and Aswan Reservoir 1 and 2 including SWDY-Siemens ADIB’s BoD plans to increase capital by EGP2 bn through a rights issue at par, which is still lower than the minimum capital requirement of EGP5 bn; bank will need to go through another round of capital increase in 2022A 4-year strategy (2022-2026) has been developed to double the insurance sector’s premiums to EGP100 billion by the end of June 2026 (CNFN; EKHO) FWRY recorded a jump in the value of transactions reaching EGP6 billion through Fawry acceptance machines (+232% YoY) and EGP5 billion through the online gateway (+400% YoY) in 2021OLFI reported positive 4Q21 net profit after non-controlling interest for the quarter at EGP95.5 mn (+30.8% YoY); FY2021 bottom-line recorded EGP351 mn, + 13% YoY; OLFI declared dividends distribution of EGP0.65/share (DY of 10.6%); OLFI is currently trading at FY22 P/E of 7.7xEMFD contracted Redcon Development and Solid Construction to start construction works for the first phase of the Belle Vie project in New Sheikh Zayed City at a cost of EGP1.2 billionMNHD’s rights issue subscription for its capital increase from EGP1.5 billion to EGP1.9 billion is open from 15 February 2022 to 16 March 2022MICH released neutral 2Q21/22 bottom line came of EGP46 million compared to EGP50 million recorded in 1Q21/22; Results were held back by the maintenance shutdown