Today’s Top News & Analysis
Egypt cuts natural gas supply to fertilizer companies by 30%
ADQ to finalize acquiring stakes in three state-owned companies
NFAs weaken in September
CBE receives a CYN7bn from the CDB
UAE studies new investments in Egypt
AFDB to finance governmental and private-sector projects
ABUK Q1 FY2023/24 prelim: Back to average prices
FRA approved CIRA's second securitization tranch
Kima declares no significant impact on gas supply cuts
MACRO
Egypt cuts natural gas supply to fertilizer companies by 30%
It has been reported that Egypt reduced natural gas supplies by around 30% for fertilizer companies operating in the country starting from last Friday. This reduction comes after the Egyptian Cabinet's announcement last Sunday of a decline in Israeli gas exports to Egypt from 800mn cbt/day to zero cbt/day, following the Israeli war on the Gaza Strip. (Asharq Business)
ADQ to finalize acquiring stakes in three state-owned companies
Abu Dhabi Holding (ADQ) to finalize the acquisition of stakes in:
· Egyptian Linear Alkyl Benzene (Elab); 35% stake.
· Egyptian Ethylene & Derivatives Company (Ethydco): 30% stake.
· Egyptian Drilling Company (EDC): 25% stake.
The acquisition should be worth USD800mn, a part of the Egyptian government privatization program worth USD1.9bn. (Enterprise)
NFAs weaken in September
The Egyptian banking system's Net Foreign Assets (NFAs) weakened through September 2023 to negative USD26.8bn vs. negative USD25.9bn a month earlier. Whereas the Net Foreign Liabilities hit a new record of USD27.1bn, which marks the first time for the liabilities to increase since June 2023. (Enterprise)
CBE receives a CYN7bn from the CDB
The Central Bank of Egypt (CBE) received a CYN7bn loan (USD957mn) from the China Development Bank (CDB). The projects that should be financed through this loan are not specified yet. (Enterprise)
UAE studies new investments in Egypt
The United Arab Emirates studies the probability of investing in Egypt again through new projects that are not specified yet. (Asharq Business)
AFDB to finance governmental and private-sector projects
The African Development Bank (AFDB) to finance governmental and private-sector projects in Egypt with USD350mn before the end of 2023. It is worth mentioning that the bank already gave Egypt USD381mn to finance energy and infrastructure projects throughout the year. (Asharq Business)
CORPORATE
ABUK Q1 FY2023/24 prelim: Back to average prices
Abu Qir Fertilizers [ABUK] announced the preliminary results for Q1 FY2023/24 where it recorded net profit of EGP2.02bn declining by 27% y/y. Revenues also declined by 10% y/y to EGP4.33bn, which was on the back of lower global Urea prices compared to the same period last year coupled with higher costs. (Company disclosure)
FRA approved CIRA's second securitization tranch
The Financial Regulatory Authority (FRA) approved the issuance of CIRA Education's [CIRA] second securitization tranch worth EGP700mn. Back in July 2022, the FRA approved the issuance of CIRA's first tranch worth EGP800mn. It is worth mentioning that in November 2022, CIRA announced issuing an EGP2bn securitization program to finance its projects. (Company disclosure)
Kima declares no significant impact on gas supply cuts
Egyptian Chemical Industries’ (Kima) [EGCH] announced in a statement yesterday that gas supplied by the government has been reduced, without mentioning the percentage of reduction. Additionally, Kima announced the gas cuts to have no significant effect till now given the company has a stock of its main products. (Company disclosure)
MARKETS PERFORMANCE
Key Dates
2-Nov-23
MPC Meeting / Determining the CBE's policy rate.
4-Nov-23
MFPC: EGM / Approving the merger contract & amending some articles of the Company's bylaws.
5-Nov-23
Egypt PMI / October 2023 reading.
EFID: OGM / Approving proposed dividends for 31 Dec. 2022.
AMOC: Cash dividend / Deadline for eligibility for a dividend of EGP0.65/Share.
6-Nov-23
EFIH: Cash dividend / Deadline for eligibility for a dividend of EGP0.177/Share.
7-Nov-23
EFIH: Cash dividend / Ex-dividend date for EGP0.177/Share.
CIRA: Cash dividend / Deadline for eligibility for a dividend of EGP0.24/Share.
8-Nov-23
AMOC: Cash dividend / Payment date for a dividend of EGP0.45/share (1st installment).
9-Nov-23
EFIH: Cash dividend / Payment date for a dividend of EGP0.177/share
DOMT: OGM / Approving the proposed dividends.
12-Nov-23
CIRA: Cash dividend / Payment date for a dividend of EGP0.24/share
14-Nov-23
MSCI: MSCI's November 2023 Semi-Annual Index Review Announcement.
23-Nov-23
TALM: OGM / Approving financial statements ending 31 August 2023 and the proposed dividends.
26-Nov-23
EFID: EGM / Discussing capital reduction & amending Articles No. 3, 6 & 7 of the company's bylaws.
30-Nov-23
ZMID: Cash dividend / Payment date for a dividend of EGP0.10/share (2nd installment).