Today’s Top News & Analysis
Narrower budget deficit, better primary surplus, and revenues in FY24
No blackouts for eight weeks
International call prices will increase by 10-15%
DSCW to buy a minority stake in its sister company United Dyers Co.
MACRO
Narrower budget deficit, better primary surplus, and revenues in FY24
The government's budget deficit in FY24 came lower than expected at EGP505bn (-17% y/y), we note that the expectation was EGP555bn. Meanwhile, the primary surplus grew enormously to EGP857bn vs. only EGP164bn last year and the government's revenues grew by 59% y/y. The government's spending grew by 37% y/y, where education spending came 11% higher than expected at EGP256bn and health spending came 22% higher than expected at EGP180bn. (Enterprise)
No blackouts for eight weeks
Yesterday, the PM said that electricity blackouts will be stopped starting next Sunday and will continue for eight weeks (mid-September). He added that the government is still seeking to fully stop the reduced electricity plan by 2025. (Enterprise)
International call prices will increase by 10-15%
Sources said that the telecom companies will increase the prices of international calls by 10-15% starting next week. We note that Telecom Egypt [ETEL] owns a 45% stake in Vodafone Egypt [VODE], which in return may increase ETEL's revenues. (Asharq Business)
CORPORATE
DSCW to buy a minority stake in its sister company United Dyers Co.
Dice Sport & Casual Wear's [DSCW] BoD approved the acquisition of a minority stake of 17.4% in its sister company, United Dyers Co., for c.EGP37mn. DSCW already owns 82.6% of United Dyers Co. shares, the acquisition will raise DSCW's stake to 100%. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
18-Jul-24
MICH: Stock dividend / Date for distributing a 0.5 for-1 stock dividend.
MPC Meeting / Determining the CBE's policy rate.
EMFD: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
IDHC: EGM / Discussing Articles No 3 & 57 of the company's bylaws.
22-Jul-24
BIOC: Cash dividend / Payment date for a dividend of EGP0.75/Share.
24-Jul-24
IFAP: EGM / Amending Articles No. 3, 4 & 6 of the company's bylaws.
EAST: OGM / Approving the sale of a plot of land and netting contracts.
EAST: EGM / Amending Article No. 7 of the company's bylaws.
28-Jul-24
EGBE: Stock dividend / Last date for eligibility for a 0.021-for-1 stock dividend.
29-Jul-24
EGBE: Stock dividend / Date for distributing a 0.021 for-1 stock dividend.
31-Jul-24
TMGH: Cash dividend / Payment date for a dividend of EGP0.11/Share (2nd installment)
ACAMD: EGM / Amending Article No. 21 of the company's bylaws.