Pre-Trading Thoughts

Al Ahly Pharos

*Key news articles for today*
NYSE-listed global miner AngloGold Ashanti will buy Egypt-focused LSE- and TSX-listed Centamin in a cash and share transaction valued at around USD 2.5 bn.

Annual urban inflation has accelerated to 26.2% in August after having fallen to 25.7% — its lowest level since December 2022 — in July. Annual core inflation — which excludes volatile items like food and fuel — also rose, with the Central Bank of Egypt (CBE) recording an annual core inflation of 25.1% in August 2024, up 0.7 percentage points from 24.4% in July. Meanwhile, monthly core inflation was back in the red, coming in at 0.9% in August compared to -0.5% in July.

The government’s new tax incentives and other tax measures will be announced later today.

The government is studying alternatives to tax EGX capital gains, including imposing a 0.15% stamp tax to replace the long-awaited, and many times postponed capital gains tax for EGX transactions.

State-owned Ayadi for Investment & Development is considering offering shares on the EGX within two years, Chairman Osama Saleh said.

The British Investment Corporation (BII) has allocated about USD100 million to invest in technology companies in Egypt in their early stages.

ESRS reported its consolidated results for 2Q24 with net attributable income coming in at EGP652.7 million, lower 36% YoY and 28% QoQ, bringing 1H24 bottom line to EGP1.6 billion reversing comparative interim losses of EGP643.3 million. ESRS is currently trading at FY25e P/E of 5.4x.

PHDC (FV: EGP8.78, OW) is planning to launch a 150 feddan project on the North Coast in 1Q25.

EGPC targets increasing its refining capacity by 9% to reach 34 million tons of crude oil during FY24/25, from 31 million tons in FY23/24.

HRHO is working on two IPOs in the Egyptian private sector, along with 4 IPOs in the Saudi market that will be launched before the end of this year, in addition to two other offerings during the first quarter of 2025.

CNFN opened its first branch in Dubai yesterday. The expansion aims to cater to Egyptian expats in the UAE by giving them access to financing and insurance services in Egypt. Expats can pay for services in Egypt such as mortgages, club memberships, car installments, green finance, and others.

EFIH BoD proposed distributing a DPS of EGP0.197 for 1H24 profits, pending assembly’s approval.

POUL BoD proposed cash dividend of EGP0.85/share for FY2023, implying dividend payout ratio of 28.0% and dividend yield of 10.7%.