Pre-Trading Thoughts

Al Ahly Pharos

Global index provider MSCI has decided to remove all special treatment measures on Egyptian securities listed in its indices in the May 2024 index review. Progress made on foreign currency liquidity and the ability of foreign investors in the country to transfer funds abroad were reportedly the reasons behind MSCI’s decision.

MSCI also has some other changes for EGX-listed companies in the pipeline which will take effect at the close of May 31:

• TMG will move from the small-cap index to the flagship Egypt index.
• EFG Holding will replace TMG in the small-cap index.

Emirati firm Dana Gas has collected USD 9 mn in receivables from Egypt in 1Q24, receiving 47% of its dues for the period, it said.

The government received three requests for private freezones.

The government has approved a new int’l seaport for yachts and cruise ships in Ras El Hekma.

Companies with annual revenues below EGP 10 mn will have their tax disputes whose non-final payments are due before 16 June 2023 settled by the end of next month.

Ministry of Finance estimated the tax exemptions at about EGP441 billion during the last fiscal year, representing 4.39% of GDP.

The government is studying hiking the prices of subsidized fertilizers, due to some companies' requests.

SWDY plans to invest EGP5 billion of capex in FY24 distributed between new projects and completing existing ones.

RACC’s BoD approved the acquisition of the remaining 15% in Gulf CX, bringing RACC's ownership in the company to 100%.

The CBE’s Digital Financial Identity Company is set to launch in 2H24, which will open the way for banks to begin letting customers open accounts without the need of visiting a branch.

CNFN has closed an EGP1.04 bn securitized bond issuance, its first in 2024.