Pre-Trading Thoughts

Weekly Commodities UpdateBrent futures are trading at USD123.31/bbl and averaged USD92.29/bbl YTDDiesel-HSFO spreads were up 61% WoW and are at USD569/tonThe Egypt Urea Index increased by 14% WoW and prices are currently at USD835/tonSteel/Iron Ore spreads hiked by 24% to USD542/tonLME 3M Fwd Aluminum prices came up 15% at USD3,849/tonRetail cement prices in Egypt followed the trend this week to range between EGP1,350 -1,400 per tonCoal FOB Newcastle Australia prices skyrocketed 75% compared to last week recording USD419/tonPolyethylene (HDPE) prices were up 1% WoW and prices are currently at USD1,370/tonPolypropylene prices broadly stable at USD1,260/MTWheat prices reached a record-breaking USD1,348/bu, higher WoW by 50.1% SMP prices rose by 9.0% to reach USD4,481/MT Crude palm oil climbed to reach USD1,658/MT, +0.7% WoWIn latest 10-year Treasury bond bids, the Ministry of Finance accepted EGP54.7 million out of EGP500 million originally requested, due to the high requested rates, between 14.5% and 17.5%Qatari dairy firm Baladna acquired a 5% stake in JUFO; JUFO is trading at a FY22 P/E of 11.3x and and EV/EBITDA of 4.4xFour consortiums have been listed as qualified for the financial assessment of bids stage for the tender for the transformer stations of the High Dam and Aswan Reservoir (EGP800 million), including Siemens – El-SewedyThe Ministry of Transport is preparing to disburse EUR150 million in favor of the Arab Contractors – Orascom Construction; . The total value of the construction work in the project is estimated at EUR1.2 billion TMGH achieved stellar record FY21 sales of EGP32.4 billion, up 94.8% y/y, boosted by the launch of the Noor project in 2Q21; 4Q21 net profit declined 38.9% y/y to EGP62.9 million as a result of goodwill write-down, taking FY21 net profit to EGP1.8 billion, up 5.4% y/y; Board proposed the distribution of cash dividends of EGP0.17/share, implying a DY of 1.9%PHDC achieved impressive FY21 sales of EGP17.3 billion, up 35.3% y/y, despite underwhelming 4Q21 sales of EGP4.4 billion, down 19.2% y/y; Net profit in 4Q21 reached EGP188.9 million, down 4.3% y/y taking FY21 net profit to EGP824.3 million, up 15.8% y/y EGAL released its budget for FY2022/23 targeting net profit after tax of EGP1,263 million EGP1,231 million in FY2021/22Inbound travel from the European Union and Britain to Egypt is normal and has not been affected by the Russian-Ukrainian crisis, Occupancy rates in Red Sea hotels have recently fallen to 40%, compared 65% before the crisisFAIT 4Q21 consolidated net profit pre-minority interest and appropriations recorded EGP1,180 million (+72% q/q, +48% y/y), bringing 2021 bottom line to EGP3.0 billion (+31% y/y). FAIT is currently trading at P/B22 of 0.4x and P/E22 of 2.9x, with ROAE of 15.0%Instant Payment System in banks for retail customers will start operating on March 22, allowing customers to complete electronic transactions in real-time, on all days of the weekEgyptians can open bank accounts without charge and with no minimum deposit starting today through the end of March as part of the CBE’s financial inclusion strategyAspire Capital Holding (ASPI), PIOH's financial services arm, reported a 2021 net profit of EGP578.07 million (-46.7% YoY)Equinox Pharma and GCC-based institutional investor acquired 6.4% (64.28 million shares) of RMDA’s shares at an average price of EGP2.00/share