Today’s Top News & Analysis
Egypt and UAE reach a currency swap agreement
EBRD cuts growth forecast
FTSE looking to demote Egypt indices to "unclassified"
Another improvement in NFAs in August
SPMD Q2 2023: Lower net losses despite the lower revenues
MACRO
Egypt and UAE reach a currency swap agreement
The Central Bank of Egypt (CBE) and Emirates Central Bank (ECB) have reached a currency swap agreement worth USD1.4bn. The CBE will be able to obtain AED5bn in return for EGP42bn, implying an fx rate of EGP8.4/AED, inline with the official FX rate. (Enterprise)
EBRD cuts growth forecast
The European Bank for Reconstruction and Development (EBRD) has cut Egypt growth forecast for 2024 by 0.7 pp to 4.5%, as per its latest regional report. The bank cites “structural constraints in non-resource sectors, high inflation and limited fiscal space” as contributing factors to the country’s economic slowdown. (Enterprise)
FTSE looking to demote Egypt indices to "unclassified"
FTSE Russel is adding Egypt to a watchlist for a possible demotion in its equity indices. This puts Egypt at risk of being demoted from “secondary emerging market” to “unclassified,” a move which could see Egyptian equities deleted from the provider’s indexes. (Enterprise)
Another improvement in NFAs in August
Net Foreign Assets (NFAs) for the Egyptian banking system improved slightly for the second consecutive month by USD0.360mn to negative USD25.9bn in August 2023 from USD26.3bn in July 2023. The improvement is driven by a slight easing in FX liquidity in the banking sector. (CBE)
CORPORATE
SPMD Q2 2023: Lower net losses despite the lower revenues
Speed Medical [SPMD] posted its Q2 2023 results with consolidated net losses of EGP25mn vs. EGP36mn last year. Despite the improvement in net losses, the revenues declined by 15% y/y to EGP14mn. SPMD recorded an improved gross loss of EGP6mn vs. EGP10mn last year. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
1-Oct-23
CIRA: OGM / Discussing dividends distribution.
3-Oct-23
Egypt PMI / September 2023 reading.
4-Oct-23
SKPC: Cash dividend / Payment date for a dividend of EGP0.40/share (2nd installment).
DAPH: Stock dividend / Last date for eligibility for a 0.1-for-1 stock dividend.
5-Oct-23
DAPH: Stock dividend / Date for distributing a 0.1 for-1 stock dividend.
11-Oct-23
ORAS: EGM / Discussing the dividend distribution of USD0.2750/share.
EFIH: OGM / Approving financial statements ending 30 June 2023 and the proposed dividends.
12-Oct-23
EGTS: OGM / Approving financial statements ending 31 Dec. 2022.
EGCH: OGM / Approving financial statements ending 30 June 2023.
EGCH: EGM / Amending Article No. 3 & 21 of the company's bylaws.
17-Oct-23
POUL: OGM / Discussing dividends distribution.