Pre-Trading Thoughts

Egypt's real GDP grew 9% YoY in 1HFY2021/22 compared to 1.35% a year earlierThe IPOs and secondary stake sales of a handful of state companies under the privatization program are moving forwardEgypt will be receiving newly announced additional natural gas exports from Israel via a new route through JordanA consortium of UAE-based Metito Holdings, Scatec Solar, and ORAS is in talks with Egyptian authorities to build a USD 1.5 bn water desalination plant Six European banks will provide funding worth USD 1.5 bn for the construction of the new mazut hydrocracking complex at the Assiut refinerySaudi Aramco signed an agreement with the Red Sea National Petrochemicals Company for long-term supply of Arabian light crude to the petrochemical complex set to be built in Ain SokhnaApache Egypt expects to spend more than USD 3.5 bn in Egypt over the next five yearsNatural gas prices increased by 13% this week to exceed USD27/MMBtuImports of goods worth up to USD5k (or the equivalent in any other foreign currency) will be exempt from the CBE’s decision requiring importers to get letters of credit (L/Cs); Rules will come into effect 22 February; Banks must lower the fees for issuing L/Cs to match those for the existing process of documentary collectionHRHO’s fintech platform Valu has new agreements to finance sports club memberships, tuition payments and plane tickets; Looking to make its first cross-border expansion into another Arab country; To issue EGP500 mn of securitized bonds in 2Q22SPMD reports 4Q21 net loss after tax of EGP31 million, mainly driven by losses in Prime Speed and the booking of all tax expense in 4Q21 4Q21 as well as lower PCR prices since October 4Adwia Pharmaceuticals is eyeing several investment opportunities, including an acquisition of a pharmaceutical companyPHDC Board approved issuing EGP3.3 billion sukuk to finance Badya; Approved reducing capital by retiring 40.7 million treasury sharesColliers International expects hotel occupancy rates in Cairo, Hurghada, Alexandria, and Sharm El Sheikh to reach 69%, 69%, 64%, and 60%, respectively, in 2022Egytrans BoD approved a proposal to restructure its group of companies, by segment, to increase the strategic focus