The MPC acted conservatively, deciding to keep rates unchanged at 27.25% for overnight deposit and 28.25% for overnight lending rate, citing global uncertainties and a slower pace of inflation deceleration throughout 2H2024 with increased upside risk to the outlook.

Local gas production dipped to an eight-year low of 4.87 billion cubic feet per day (bcf/d) in 2024, down 16% y-o-y.

China's North Petroleum Corp. has earmarked USD100 million to acquire new concessions in Egypt or form partnerships to explore for oil and gas in the Western Desert and offshore waters.

The Minister of Tourism revealed that discussions are currently underway with the CBE and the Ministry of Finance to study the possibility of launching a new initiative to support the tourism sector worth EGP100 billion.

The Chairman of the Board of Directors of the Egyptian Commercial Representation Authority revealed a target to achieve exports of USD48 billion by the end of this year, an increase of 20% over last year.

The Financial Regulatory Authority (FRA) will issue a decision regarding the registration and licensing fees for companies subject to the new Unified Insurance Law within two weeks.

The EGX is studying with the FRA a legislative amendment to the listing rules that aims to repeal or amend the clause freezing 51% of the shares of major shareholders in companies when offering on the stock exchange for two years.

After the Listing Committee of the EGX approved the share buyback procedures for ESRS shares, a Special Operations Market (OPR) will be opened from Sunday, 23 February 2025, until Thursday, 6 March 2025 to receive selling orders from all shareholders who wish to sell, at the price of EGP138.15/share.

HDBK (FV: EGP90.00, OW) FY24 standalone net profit recorded EGP11,040 million (+83% YoY). BoD proposed the distribution of cash dividends of EGP5.00/share, which implies payout ratio of 24% out of 2024 net profit and DY of 9.5%. The bank is currently trading at P/E25 of 2.3x and P/B25 of 0.9x.

CNFN is pursuing regulatory approval to obtain a digital banking license.

- Market Overview

- TMGH

- ORWE

- OCDI

- AMOC

- prepared by: Mayada Amin- CETA, CFTe

The MPC is scheduled to meet today to decide on policy rates. We believe the CBE might prefer to cut rates by 100-150 bps in its meeting today.

Moody’s kept Egypt’s outlook positive and affirmed its Caa1 rating.

UK-based Shard Capital and Saudi Arabia-based Alqahtani Holding inked a framework agreement for a USD7 billion petrochemical production complex in New Alamein with the Oil Ministry-backed Egyptian Petrochemicals Holding Company and the Investment Ministry.

The reconstruction of Gaza can be completed in three years, Prime Minister Moustafa Madbouly said during his weekly presser yesterday.

Egypt paid another USD1 billion arrears to foreign oil companies yesterday, according to an official..

The Ministry of Petroleum plans to increase Egypt's oil production by 8% during the next fiscal year 2025-2026 to reach 485k barrels per day.

The Egyptian General Petroleum Corporation (EGPC) inked updated agreements with US-based IPR Energy and Tunisian oil and gas firm HBS International worth a combined USD13.5 million.

The Egyptian government allowed the Cheiron Energy company, owned by businessman Salah Diab, to export about 550k barrels of crude oil last January, in exchange for part of its overdue dues to the EGPC.

COMI’s BoD proposed to distribute cash dividends of EGP2.50/share.

ATLC released positive FY24 financial results: 4Q24 bottom line recorded EGP108 million (3.2x y/y, 2.2x q/q), bringing FY24 net profit to EGP216 million (+26% y/y). We have updated our FV for ATLC from EGP5.17/share to EGP6.66/share. ATLC is currently trading at P/E25 of 3.1x and P/B25 of 0.9x.

TMGH achieved FY24 sales, including sales made for third parties, of EGP504 billion, up 252.9% y/y.

MFPC signed a cooperation agreement and an MoU with Germany’s ThyssenKrupp to develop a USD220 million carbon capture project, the first of its kind in Africa and the Middle East.

The EGX’s listing committee approved ESRS request to delist its 542 million shares from the bourse.

- Market Overview

- ABUK

- FWRY

- MFPC

- ORHD

- Prepared by: Mayada Amin- CETA, CFTE

The government is working on a number of ways of facilitating customs including electronically linking data with the Egyptian Tax Authority to expedite data verifications, improving issues related to duty drawback, temporary admission, and pre-release procedures for shipments.

Adnoc Distribution plans to expand its aviation fuel services in Egypt beyond its existing presence at Cairo and Marsa Allam airports.

The Oil Ministry signed an MoU with Greece’s Environment and Energy Ministry to collaborate on carbon capture, storage, and utilization.

Egypt will ink an agreement to rent a floating regasification unit from Cyprus next month.

Twenty German companies are planning to invest in Egypt’s manufacturing sector.

Saudi energy company ACWA Power has secured a power purchase agreement (PPA) with the state-run Egyptian Electricity Transmission Company (EETC) for a major wind energy project in Egypt's south Hurghada.

Minister of Labor revealed that the government aims to reduce the unemployment rate to 5.7% in 2025, compared to the previous rate of 6.4%.

The FRA revised regulations related to SPACs, allowing them to merge, swap shares, or acquire credit balances of their target company.

COMI (FV: EGP135.00, OW) 4Q24 net profit post-minority interest recorded EGP12,848 million (-13% q/q, +78% y/y), bringing FY24 bottom line to a strong EGP55,196 million (+86% y/y). The stock is currently trading at P/E25 of 4.1x and P/B25 of 1.3x.

BTFH has completed the acquisition of SODIC Securitization Company for EGP8.6 million.

EGAL reported steady KPIs for 2Q24/25. Net profit after tax came in at EGP3.1 billion in 2Q24/25 (+73% YoY, -26% QoQ). 1H24/25 net profit after tax surged 114% YoY to EGP7.4 billion. EGAL is currently trading at FY24/25e P/E of 5.5x and EV/EBITDA of 3.1x.

EGX is considering adopting a real-time settlement mechanism for the voluntary delisting of ESRS shares where transaction settlement and fund disbursement take place immediately upon execution with the opening of the OPR.

FWRY, Banque Misr, and EBC launched a new cash in and out service for e-wallets.

ETEL and Orange Egypt signed transmission and infrastructure services.

- Market Overview

- CCAP

- BTFH

- ETEL

- AMOC

- EKHOA

- prepared by: Mayada Amin-CETA, CFTe

The Oil Ministry yesterday inked two agreements with Cyprus to liquify and re-export Cypriot natural gas.

Saudi renewables giant Acwa Power is setting up a 2 GW wind farm in South Hurghada with investments of SAR8.6 bn (c. USD2.3 bn).

Italian leading hospital group San Donato Group wants to set up a USD100 mn hospital and an international medicine-focused university.

Chinese electronics and household appliance manufacturer Hisense and UAE’s FBB Tech began construction of their USD38 mn new electronic devices manufacturing facility in the China-Egypt Teda trade zone in Ain Sokhna.

Italian energy player Eni plans to begin producing 100 mn cubic feet per day (cf/d) of gas from its Noor field off Egypt’s northern coast by mid-2026.

The EGX and the Madbouly government are in talks over listing all of the companies earmarked for privatization on the EGX in the lead up to selling them off to strategic investors.

Egypt is looking to up its imports of Israeli gas by 58% by the middle of 2025.

Egypt’s grain imports, including wheat, corn and soybeans, reached USD8.56 billion in 2024, compared to USD7.99 billion in 2023, a growth of 7.1%.

Jihad Azour, the Director of the Middle East and Central Asia Department at the IMF, stated that the fourth tranche of the Fund’s loan to Egypt includes a new program related to the environment, and in light of that, the fourth review and a new program will be approved.

SAUD 4Q24 standalone bottom line recorded EGP787 million (-11% q/q, +28% y/y). Bringing FY24 bottom line to EGP3,012 million (+35% y/y, and 8% higher than Al Ahly Pharos Estimates of EGP2,798 million). BoD proposed to distribute cash dividends of EGP0.85/share, which implies a pay-out ratio of 24%, perfectly in line with Al Ahly Pharos estimates, subject to the CBE's approval. SAUD is currently trading at P/E25 of 2.9x and P/B25 of 0.6x.

- Market Overview

- COMI

- ADIB

- BTFH

- OIH

- GBCO

- prepared by: Mayada Amin- CETA, CFTe