Today’s Top News & Analysis
Minister of Planning reviews FY24’s socio-economic development plan
Softest contraction in Egyptian non-oil private sector activity since the end of 2021
STC negotiates the acquisition of an Egyptian IT company
Six Saudi Investors seek new investments in Egypt
Egypt to increase oil production by 11% in 2023
Cigarette prices are up by EGP10/pack
TAQA shares to be listed soon
RACC opens a new branch in Saudi Arabia to enhance its operations
MACRO
Minister of Planning reviews FY24’s socio-economic development plan
During the general session of the senate, Minister of Planning reviewed the socio-economic development plan for the FY24, here are the main takeaways:
• The plan estimates GDP growth for FY24 of 4.1% to EGP11.8tn, with total investments reaching EGP1.8tn.
· The plan directs investments of EGP100.7bn to the manufacturing industries, including both petroleum and non-petroleum industries.
· EGP436bn allocated for education, health and other social service sectors, accounting for 26.4% of the total investments of the new plan.
· The new plan targets EGP116.6bn of agricultural investments and to increase self-sufficiency in wheat and corn to 49%.
· Total investments directed to transportation sector of about EGP321bn, representing an increase of 30%.
• EGP 273 billion directed to the urban development sector, representing 16.5% of the total plan investments for the year. ( Ministry of Planning, Al-Borsa)
Softest contraction in Egyptian non-oil private sector activity since the end of 2021
Egypt's Purchasing Managers’ Index (PMI) for the non-oil private sector still shrank for the 30th consecutive month, yet at the softest pace in 15 months. The index strengthened to 47.8 in May 2023 from 47.3 in April 2023, yet still below the 50.0 threshold that marks growth in activity. This comes as the surging inflation and weak demand still weigh on business. (Reuters)
STC negotiates the acquisition of an Egyptian IT company
Saudi Telecom Co. (STC) is said to be currently negotiating the acquisition of one of the largest Egyptian information technology companies to furtherly support its operations in Egypt. We note that STC Solutions, a subsidiary of STC, acquired 89.5% of Giza Systems last October for EGP2.3bn. (Al-Borsa)
Six Saudi Investors seek new investments in Egypt
Minister of Trade & Industry stated that six Saudi investors are seeking new investments in Egypt through establishing projects in the food, metal, and engineering sectors. He mentioned that some of these investors are investing in the Egyptian market for the first time, while others are looking to expand their investments. (Al-Borsa)
Egypt to increase oil production by 11% in 2023
Egypt is reportedly seeking to increase crude oil production by 11% to reach 650,000 bpd. Egypt currently consumes around 12mn tons of diesel and 6.7mn tons of gasoline. Increasing domestic oil production will help decrease the burden of the import bill. The country hopes to achieve this by increasing exploration efforts and seeking more foreign investments from oil companies. (Asharq Business)
Cigarette prices are up by EGP10/pack
The head of the tobacco and cigarette division in the FEI reported that cigarette prices are up by EGP10/pack as the producers are trying to pass the higher production costs to consumers. He added that Cleopatra's pack is now for EGP36 vs. EGP24 a month earlier, along with other types. (Al-Borsa)
CORPORATE
TAQA shares to be listed soon
TAQA Arabia [TAQA], Qalaa Holding’s [CCAP] subsidiary (a 55.3% stake), will have its shares temporarily listed on the EGX as of Thursday, 8 June 2023. The company’s shares will not be offered in an IPO but will be allowed for direct trading once TAQA publishes the necessary disclosure reports and gains final approval from the FRA. The company’s paid-in capital is EGP676mn distributed over 1,352,353,800 shares with a par value of EGP0.5. (EGX)
RACC opens a new branch in Saudi Arabia to enhance its operations
Raya Contact Center [RACC] announced opening its second branch in Saudi Arabia in Riyadh beside its first branch in Al Khobar to enhance its presence in the region. (Company disclosure)
Markets Performance
Key Dates
5-Jun-23
PMI: Egypt PMI / May 2023 reading
JUFO: Cash dividend / Deadline for eligibility for a dividend of EGP0.15/Share.
6-Jun-23
BTFH: Capital increase / Capital increase subscription starting date.
JUFO: Cash dividend / Ex-dividend date for EGP0.15/Share.
CSAG: OGM / Approving the estimated budget of FY 2023/2024.
CSAG: EGM / Amending Article No. 3 of the company's bylaws.
7-Jun-23
ATQA: EGM / To renew the company's license for 25 years starting from the end of the previous license (30 May 2023).
8-Jun-23
JUFO: Cash dividend / Payment date for a dividend of EGP0.15/Share.
BTFH: OGM / Approving financial statements ending 31 Dec. 2022.
BTFH: EGM / Amending Article No. 29 of the company's bylaws.
15-Jun-23
ZMID: OGM / Approving financial statements ending 31 Dec. 2022 and the proposed dividends.
17-Jun-23
MICH: EGM / Amending Article No. 6 of the company's bylaws for increasing the authorized capital from EGP400mn to EGP1bn.
18-Jun-23
MOIL: OGM / Approving financial statements ending 31 Dec. 2022 and the proposed dividends.
MOIL: EGM / Discussing the continuation of the company.
19-Jun-23
SUGR: Cash dividend / Deadline for eligibility for a dividend of EGP2.550/Share.
20-Jun-23
SUGR: Cash dividend / Ex-dividend date for EGP2.550/Share.
22-Jun-23
AREH: OGM / Approving financial statements ending 31 Dec. 2022.
HELI: Cash dividend / Payment date for a dividend of EGP0.10/share (2nd installment).
SUGR: Cash dividend / Payment date for a dividend of EGP2.550/Share.
25-Jun-23
MCQE: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
26-Jun-23
BINV: OGM / Approving financial statements ending 31 Mar. 2023 and the proposed dividends.