Today’s Top News & Analysis
Annual core inflation eases to 38.6% y/y in April 2023
Egypt's B3 credit rating placed under review by Moody’s
Egypt’s exports to the European Union increased by 79% in 2022
Cabinet approves exempting Egyptian expats from custom duties on gold
Egypt reconsiders a 10% sale of ETEL which just completed 2Africa subsea cables
FRA approves the horizontal spinoff of Amer Group
MACRO
Annual core inflation eases to 38.6% y/y in April 2023
Egypt’s Annual core inflation eased to 38.6% y/y in April 2023 from 39.5% y/y in March 2023. Also, monthly core inflation eased to 1.7% in April vs. 2.5% in March. Our forecasts for the annual core inflation were at 39.2%. (Mubasher)
Egypt's B3 credit rating placed under review by Moody’s
Moody’s placed Egypt’s foreign and local currency issues at B3 under review for downgrade, attributing this to a slower-than-expected progress in the sale of Egyptian state-owned assets, which weakens Egypt’s foreign exchange liquidity and threatens its financing plans. (Hapi Journal)
Egypt’s exports to the European Union increased by 79% in 2022
Egypt's exports to the European Union countries witnessed a big boom in 2022, reaching EUR16.3bn (+79% y/y). (Mubasher)
Cabinet approves exempting Egyptian expats from custom duties on gold
The Egyptian Cabinet approved exempting Egyptian expats from customs tax and other fees except value-added tax on gold, for a period of six months. (Mubasher)
Corporate
Egypt reconsiders a 10% sale of ETEL which just completed 2Africa subsea cables
The Egyptian government is reportedly reconsidering the sale of a 10% stake in Telecom Egypt [ETEL] starting this month (May 2023). The initial price set for the offering is EGP22.25/share, implying a total of EGP3.8bn or the equivalent to USD123mn (c.4% below yesterday’s closing price). On a separate note, ETEL announced completing the installments of 2Africa in the Egyptian territory after landing its second 2Africa subsea cable located in Port Said. This comes five months after ETEL’s launch of its first 2Africa subsea cable in Ras Ghareb. (Asharq Bloomberg, Company disclosure)
FRA approves the horizontal spinoff of Amer Group
The Financial Regulatory Authority (FRA) approved the horizontal spin-off of Amer Group Holding Co. [AMER] into AMER and A-Capital Holding, and for both companies to start trading on the EGX. The spinoff aims to increase the operational growth opportunities for both companies, where …
· AMER will specialize in real estate development, managing clubs and restaurants through the holding company and 16 other subsidiaries.
· A-Capital Holding will specialize in investments in real estate projects and companies through the main companies and five subsidiaries.
AMER will have a par value of EGP0.70/share, while A-Capital Holding will have a par value of EGP0.30/share. AMER’s stock price increased in yesterday’s trading by 4.9%, closing at EGP0.71/share. (Company disclosure)
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