Pre-Trading Thoughts

Al Ahly Pharos

A consortium of the UAE’s Al Shafar General Contracting (ASGC) Group and Saudi Egyptian Developers (SED) has backed out of an agreement to work on the USD5 billion redevelopment of the former National Democratic Party (NDP) headquarters in central Cairo due to increased construction costs following the EGP float.

Alexandria Port Authority is gearing up to hand over three maritime terminals to local and foreign operators before the end of the year.

The government has asked the Finance Ministry to postpone administrative seizures of indebted industrial facilities as part of a broader initiative to support productive sectors.

The Finance Ministry sold some EGP54.1 billion worth of three-month t-bills this week at an average yield of 29.6%. This marks the highest yield on three-month bills since March.

Recently hiked energy bills could reportedly save the state some EGP30 billion this fiscal year.

Government sources estimated the value of goods accumulated at ports at USD100 million. These goods accumulated due to unpaid fees.

The Holding Company for Metallurgical Industries is negotiating with the Ministry of Electricity to obtain a reduced electricity tariff for its subsidiary EGAL (FV: EGP125.21, OW). It is worth noting that EGAL is currently acquiring electricity at EGP1.32 per kilowatt hour, out of which the Finance Ministry burdens EGP0.10 per kilowatt hour.

According to media, PHDC (FV: EGP8.78, OW) is looking into a number of real estate and education projects in Saudi Arabia.

The Federation of Egyptian Industries’ (FEI) pharma division has submitted a request to introduce customs exemptions for inactive ingredients. Pharma players also requested VAT breaks for the sector’s packaging input.

The government will be meeting with international pharma players over the coming period to invite them to take part in the EGP80 million regional hub for pharma raw materials.

MICH released FY23/24 unaudited financial indicators. Net profit grew 22% YoY to EGP667 million. MICH’s BoD proposed distributing cash dividends of EGP4.00/share.

Menthum and CICH’s asset management arm launch a USD fixed income fund in Egypt with an initial target size of USD10 million.

ValU raised EGP1.1 billion in a securitized bond issuance.

Weekly Commodities Update

| | Last Price | WoW Change, %
| Brent, USD/bbl | 79.0 | -0.8%
| Diesel-HSFO Spread, USD/ton | 262 | -2.0%
| Egypt Urea, USD/ton | 345 | -3.4%
| Polyethylene, USD/ton | 1,020 | -1.0%
| Polypropylene, USD/ton | 975 | 0.0%
| Iron Ore 65%, USD/ton | 118 | 1.6%
| Steel/Iron Ore Spreads, USD/ton | 388 | -2.0%
| LME Copper Cash Price, USD/ton | 9,173 | 1.9%
| LME Aluminum Cash Price, USD/ton | 2,537 | 9.4%
| Egyptia Retail Cement, EGP/ton | 2,798 | 17.7%
| Steam Coal FOB Newcastle Australia, USD/ton | 145 | -1.1%
| SMP, USD/MT | 2,636 | 3.8%
| Last price may vary week over week in some indices due to time difference