Pre-Trading Thoughts

The IMF has maintained its projection for Egypt’s real GDP growth in FY2023/24 at 3%, and to rebound to 4.4 percent in FY2024/25.Interest payments in the state budget FY2024/25 are estimated at EGP1.8 trillion, about 70% of the total revenues of EGP2.63 trillion, due to higher estimation of average interest payment on treasuries, at 25%, compared to 18.5% in FY2023/24.The government is looking to restart a number of stalled state projects building social housing, waste management facilities, and water infrastructure.Qatar and Algeria will become our two main sources of LNG, as the government seeks to import up to 52.5 bn cubic feet to meet heightened summer demand, an unnamed government official saidEgypt’s exports grew 5.3% YoY in the first three months of the year to total USD 9.6 bn.The Minister of Finance said that the government hopes to achieve the targets of its companies sales' program in 3 to 5 years. He added that the government is not likely to issue Eurobonds during the current fiscal year.CBE is planning to increase the limits on transfers through Instapay and the digital channels of banks.FAIT’s standalone net profit expanded by 48% y/y in 1Q24 recording EGP6 billion, supported by strong r growth (+82.4% y/y) which stood at EGP10.17 billion.EGX announced the opening price of the subscription right for KIMA’s capital increase at EGP3.27/share.MNT-Halan, GB Capital subsidiary,  is considering launching a multi-sukuk issuance program worth EGP20 billion during the coming period. The program is still in its initial stages, and its aim is to finance the company’s subsidiaries “Halan, Mashroey and Tasaheel”.