Pre-Trading Thoughts

Al Ahly Pharos

Egypt’s annual urban inflation rate fell to 24.1% YoY in December, as expected, from 25.5% in November, its lowest in two years. On a monthly basis, urban prices rose by 0.2% compared with 0.5% in November. Core inflation recorded 23.2% in December 2024, compared with 23.7% in November 2024, while monthly core inflation recorded 0.9% in December 2024, compared with 0.4% in November 2024.

The government’s new social protection package will contain raises in the minimum wage, tax thresholds, social protection coverage, and pensions, two government sources said. The government is planning on raising the minimum wage for civil servants and workers at state-owned enterprises, and the Finance Ministry is looking into raising the personal income tax exemption threshold to EGP 65k — up from EGP 60k previously — while keeping other income brackets unchanged, sources said.

EGX is looking forward to listening new 11 companies in 2025. An unnamed company real estate giant from the private sector will be joining the EGX this month, EGX boss Ahmed El Sheikh said.

Egypt has secured enough energy supplies to ensure that the nation’s power plants can run at full capacity when the summer season approaches and demand jumps, Electricity Minister Mahmoud Esmat told Asharq Business.

Madrid-based business process outsourcing (BPO) firm Konecta will kick off operations in Egypt, set up a regional HQ in the country, and invest USD100 mn in the country over the coming three years under an MoU inked with the Information Technology Industry Development Agency (ITIDA), according to a cabinet statement.

ORAS announced the start of commercial operations of 306 MW at the newly expanded 650 MW Build-Own-Operate (BOO) wind farm in Ras Ghareb, Egypt, four months ahead of schedule and exceeding the contractual target by 56 MW. The remaining capacity is on track to be gradually connected to the national grid by Q32025, making the project the largest operational wind farm in the Middle East and Africa.

Naguib Sawiris has transferred his entire 5.8% stake in ORAS to his brother Nassef Sawiris, as part of asset re-allocation among the family, and bringing the latter’s stake and entities held for his benefit in the firm up to 42.4%. The Sawiris family’s total ownership in ORAS remained unchanged at 54.9%.

Social Impact Capital (SIC) amended its mandatory tender offer to acquire CIRA following the release of the company’s fair value study done by BDO Keys Financial Consulting which determined CIRA’s fair value at EGP17.95/share. In response, SIC raised its offer price to EGP15.50 per share, up from the previous EGP15.00.

China’s Asia Potash International Investment announced plans to set up a phosphate fertilizer industrial complex in Upper Egypt, which is set to have a final investment ticket of USD7-10 billion, company representatives said during a meeting with General Authority for Investment and Freezones boss Hossam Heiba.

Kuwait Energy is allocating USD43.8 million to complete exploration works during FY25/26.

FRA announced PHAR’s capital increase’ (from EGP1.487 billion to EGP1.687 billion, an increase of EGP200 million) record date on 21st January 2025. Subscription period is set to start on 26 January 2025 to 24 February 2025.

A Qatari-Egyptian consortium is studying the establishment of a steel factory in Qena governorate with initial investments of up to USD100 million.