Today’s Top News & Analysis
CBE extends the tourism sector support initiative
Egypt targets 5.5% GDP growth in FY24
Banks reportedly constrain certain credit/debit cards international transactions
Prime minister announces clearing USD5bn worth of congestion in ports
Shareholders of Oriental Weavers restructure their ownership, yet retain it
MICH posts 5M 2022/23 results
EMPC expects EGP324mn net earnings in 2023
Ibnsina to write off treasury shares
MACRO
CBE extends the tourism sector support initiative
The Central Bank of Egypt (CBE) issued a circular where it extends the support initiative for the tourism sector for another three months till March 2023. This is the second extension for the initiative after extending it for a year last December 2021. (CBE)
Egypt targets 5.5% GDP growth in FY24
Egypt is targeting a GDP growth of 5.5% in its draft budget for the next fiscal year, according to Finance Minister. The government is also targeting a primary surplus of 2% for the upcoming fiscal year and a 5% budget deficit in the medium term. (Enterprise)
Banks reportedly constrain certain credit/debit cards international transactions
Sources allege that banks constrained certain international transactions through debit/credit cards concerning particular segments of merchants, including gold merchants. (CNBC Arabia)
Prime minister announces clearing USD5bn worth of congestion in ports
In a meeting held yesterday, Prime Minister Moustafa Madboly, announced the clearing of congestion in ports by USD5bn worth of goods since the beginning of the month and until 23 December 2022. This comes as a part of a total USD14bn pileup of imported goods at ports on the back of import restrictions. (CNBC Arabia)
CORPORATE
Shareholders of Oriental Weavers restructure their ownership, yet retain it
Both Farida Khamis and Yasmine Khamis sold their entire stakes of c.164mn shares or 24.6% in Oriental Weavers Carpet [ORWE] to FYK Limited at an average price of EGP8.4/share. In a follow-up disclosure by ORWE, it was revealed that FYK Limited is 100% owned by the two ladies and that such a move will help in solidifying ORWE’s financing options. (Company disclosure: 1,2,3)
MICH posts 5M 2022/23 results
Misr Chemcial Industries [MICH] 5M 2022/23 bottom line upped by 175% y/y to EGP219mn. Reasons for stellar bottom line growth is higher sales volume and higher average selling prices, as well as FX gains. We note that November’s bottom line alone came in at EGP57mn. (Company disclosure)
EMPC expects EGP324mn net earnings in 2023
Egyptian Media Production City’s [MPRC] budgeted bottom line for 2023 is EGP324.5mn, where targeted top line stands at EGP668mn. This implies forward P/E of 4x. (Mubasher)
Ibnsina to write off treasury shares
Ibnsina Pharma [ISPH] announced lowering its paid in capital by 7.6% to EGP258mn through writing off treasury shares of 85.6mn shares. Meanwhile, the remaining 23mn treasury shares will be written off later. We note that ISPH ended its 10% buyback program in 28 November 2022. (Company disclosure)
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