Pre-Trading Thoughts

CBE decided to stop working with the Inward Documentary Collection (IDC) in all importation transactions and to work with Letters of Credit (LC) instead; Import monitoring and higher database and FX efficiency is the reasonWeekly Commodities UpdateOil prices surged to USD95.80/bblRetail cement prices in Egypt inched up, for the second week in a row, to range between EGP1,200 -1,250 per tonThermal coal prices were unchanged at USD219/tonDiesel-HSFO spreads were up 3% WoW and are at USD350/ton (CCAP)Aluminum prices came up 2% at USD3,137/tonCrude palm oil climbed to reach USD1,383/MT, +3.4% WoWSMP prices rose by 2.2% to reach USD4,051/MT Steel/Iron Ore spreads remained stable at USD421/tonThe Egypt Urea Index is broadly stable at USD755/tonPolyethylene (HDPE) prices were unchanged at USD1,300/tonPolypropylene prices stood still at USD1,240/MTEgypt signed 37 agreements in the field of oil and gas exploration within two years’ worth USD8.1 billionSWF CEO: It is the right time to raise the permitted investments of insurance funds in the EGX to 10%Minister of Trade and Industry has a plan to provide local substitutes for imports worth USD14 billionCompanies will place their final bids for six new steel manufacturing licenses from the Industrial Development Authority (IDA) todayEl Sisi has ratified the Fintech Act, which regulates robo-advisory, nano-finance, insurtech, and (tech-enabled) consumer financeFWRY microfinance outstanding portfolio reached EGP 437 million (+67% YoY)EMFD awarded a contract worth EGP1.0 billion for the construction of the 42k sqm My Park project in Mivida ELSH Board approved a EGP45.4 million capital increase through 1:4 bonus sharesCPCI released 1H21/22 bottom line increased by 22.5% YoY to record EGP82 million in 1H21/22; CPCI is currently trading at 21/22f P/E of 4.2x and EV/EBITDA of 1.8xUEFM released 1H21/22 net profit recorded EGP56 mn, +6.2% YoY; UEFM is currently trading at an annualized FY21/22 P/E of 5.7x