Pre-Trading Thoughts

Al Ahly Pharos

Prime Minister Madbouly announced the formation of six advisory committees that will ensure continued and deepened communication between policymakers and the private sector as the state pushes its reform drive into the new year.

French energy company TotalEnergies and Italian energy giant Eni and the Madbouly government will next month ink agreements to transport Cypriot gas to Egypt to be liquefied and exported.

AD Ports inked an MoU with the Transport Ministry to explore joint development and operations of a 1.1 sq km integrated logistics park in Alexandria Port.

Egypt plans to host a US economic forum in May, Foreign Minister said.

A French trade mission will visit Egypt in May to explore potential investments in the local market.

Manufacturing, tourism, and CIT sectors were among the biggest contributors in GDP growth in 1Q 2024-2025, which recorded about 3.5%, up from 2.4% in 4Q FY 2023-2024.

MPs are reconvening today after a two-week break to discuss and vote on three draft tax-related laws.

The Ministry of Finance is looking into swapping debt for assets and investments with several international parties and institutions, in both clean energy and human development.

Foreign investments, including Arabs, through the secondary market exceeded a net purchase of about USD2.57 billion in 20 business days from December 29 to January 23.

The Financial Regulatory Authority (FRA) has amended the rules governing private insurance funds and the caps on their investments in a move aimed at helping them diversify their investment portfolios. The decision allows private insurance funds that operate defined benefit pension plans to invest up to 10% of their total assets in metal-related funds or instruments traded on the EGX.

SKPC released 4Q24 financial indicators. Net profit increased by 1% YoY (-2% QoQ) to EGP650 million during 4Q24. Full year net profit increased by 3% YoY to EGP2.5 billion in 2024. SKPC is currently trading at a 2025e PE of 6.3x and EV/EBITDA of 5.8x.

The FRA Grievance Committee reviewed the complaint from Ahmed Ezz, the main shareholder in ESRS, regarding the exclusion of his shares and the shares of related parties from voting on the general assembly’s decisions related to the delisting of the stock from EGX. The committee accepted the grievance for review but ultimately rejected it on substantive grounds.

Egyptian contractors, including ORAS, SWDY's Rowad, and Hassan Allam, are close to wrapping up one of Libya’s mega infrastructure projects, with investments of USD1 billion, according to local media.