Pre-Trading Thoughts

Prime Minister Moustafa Madbouly’s new government will take their oath before President El Sisi on Tuesday.The IMF has reached a staff-level agreement with Egypt on the third review of its expanded USD8 billion loan program, which is set to unlock USD820 million after the Fund’s executive board gives the go-ahead in the coming weeks.Ain Sokhna will receive the floating LNG regasification unit that the government will lease from Norway’s Höegh LNG in mid-June as it gears up to welcome LNG shipments to help meet heightened local demand. Oil Ministry spokesperson Hamdi Abdel Aziz confirmed that power supplies have returned to their normal levels before the heatwave that hit the country last week. The government will pay 25% of its arrears to international oil and gas companies operating in the country this week. The government cut its target for wheat exports by 17% YoY to 5 million tons during the current year.TMGH (FV: EGP75.00, OW) achieved YTD sales of EGP122.0 billion, up 171.1% y/y. SWDY reported solid 1Q24 consolidated results with attributable earnings surging to EGP4.0 billion (+37%, +95% QoQ). SWDY is currently trading at FY24e P/E of 8.6x and EV/EBITDA of 4.2x.SWDY is studying the execution of some projects in Iraq especially in the infrastructure and industrial sectors.SKPC announced that it has begun receiving feed gases and gradually starting up its plants following the stabilization of gas pressure in the network. ABUK also announced on Thursday that it will gradually go back to normal operation.CCAP announced the completion of the first phase to submit applications to participate in the purchase of Qalaa Holdings’ external debt which lasted from 2 to 5 June 2024. The total amounts collected in the first phase were EGP875.4 million, equivalent to USD17.5 million out of a total value of USD21.6 million with a coverage of 81.1%. The remaining amount to participate during the second phase is USD4.1 million, equivalent to EGP204.0 million. The second and final phase of applications for participation will be opened on 9 June 2024.Methanex Egypt announced that the Oil Ministry promised to resume natural gas supply to the company’s plants during the current week. Methanex is the sole producer of Methanol in Egypt.The CBE announced the completion of the deployment of nearly 6,500 ATMs as part of the initiative it launched in 2020 to deploy ATMs in areas suffering from shortages of machines with the participation of 26 banks. The CBE revealed that the number of Meeza cards in the Egyptian market reached 33.7 million issued cards.HRHO's investment banking division completed its advisory on the USD150 million IPO of Miahona, a leading developer of water and wastewater infrastructure in Saudi Arabia.Banque du Caire net profit in 1Q24 grew 129% y/y to EGP2.4 billion.