Today: Egypt is moving closer to launching its privatization program, with the first temporarily listed state-owned companies expected to begin trading on the EGX in the fourth quarter + we have news that Qalaa Holdings' Egyptian Refining Company repaid its senior debt, paving the way for potential dividend distributions while continuing its earnings recovery.

🔔 EGX30 ended -1.0% by market close at 49,825 points, the EGX70 rose 0.8% to 15,185 points, and the EGX100 increased 0.6% to reach 20,733 points.

💸 The number of transactions reached 166,138 spread across 1,483,455,087 stocks leading to a turnover of EGP 6.427 billion.

🏷️International investors were the only net sellers. 

📈 Top gainers for the market as a whole included Delta For Printing & Packaging (+20.0%), Golden Textiles & Clothes Wool (+20.0%), Alexandria New Medical Center (+20.0%)

📉 Top losers for the market included Arab Polvara Spinning & Weaving Co. (-4.9%), Rubex International for Plastic and Acrylic Manufacturing (-4.1%), and Certificates Of Odin Egyptian Equity Investment Fund (-3.7%).

⬆️ Top gainers for EGX30 were Edita (+4.8%), Raya Holding (+2.5%), and Orascom Construction (+2.0%).

⬇️ Top losers for EGX30 included Eastern Company (-2.9%), CIB (-2.3%), and Juhayna (-1.6%).

Other Important Stats: 

🧈 24K Gold reached EGP 6,418 per gram, down 1.3% day-on-day but down 17.3% month-on-month.

💲 The USD reached EGP 49.25 at the National Bank of Egypt.

Egypt's privatization program is moving into its next phase, with the first group of temporarily listed state-owned companies expected to begin trading on the EGX in the fourth quarter of this year, EnterpriseAM reported, citing State-Owned Companies Unit head Hashem El Sayed. The anticipated launch comes as the government continues expanding its listing pipeline while advancing new offerings across the petroleum and insurance sectors.

Temporary listings continue to expand:

The government has now temporarily listed 20 state-owned companies after assigning EGX tickers to four additional firms. The latest additions include Enppi, Petroleum Marine Services, Egyptian Linear Alkyl Benzene Company (Elab), and Al Maamoura, a subsidiary of the Holding Company for Tourism and Hotels (Hotac).

According to Financial Regulatory Authority Chairman Islam Azzam, the three petroleum companies have a combined book capital of around EGP 35 billion, while their estimated fair value is significantly higher. Their inclusion also moves Egypt closer to its IMF commitment to bring 10 petroleum companies to market, with Petrojet and Midor expected to follow in July.

Al Maamoura listed 25 million shares at a nominal value of EGP 10 per share, becoming the third Hotac subsidiary to complete a temporary listing after Misr Travel and Egoth.

Trading preparations continue:

According to EnterpriseAM, El Sayed said trading will begin only after each company completes its fair-value study and appoints an offering advisor approved by the Financial Regulatory Authority.

He added that investor interest has already emerged across all of the temporarily listed companies, with each receiving multiple acquisition proposals. El Sayed also said the government is moving away from predetermined stake-sale percentages, with the size of future offerings instead expected to reflect market valuations and investor demand.

Petroleum companies may trade in US dollars:

In separate remarks reported by Asharq, El Sayed said the three temporarily listed petroleum companies are expected to trade in US dollars on the EGX. He added that a dual listing on the Saudi Exchange remains under consideration, subject to approvals from the relevant authorities and applicable regulations.

Misr Life moves closer to an IPO:

Separately, Misr Insurance Holding Company approved plans to float a 20% stake in its subsidiary Misr Life Insurance on the EGX during an extraordinary general assembly attended by Investment Minister Mohamed Farid.

The state-owned insurer reported a 32% year-on-year increase in consolidated net income and retained earnings to EGP 37 billion in FY2025. Gross written premiums rose 12% to EGP 40.4 billion, while total assets increased 13% to EGP 247 billion.

Misr Life also reaffirmed its AM Best financial strength rating of B++ and long-term issuer credit rating of bbb, underscoring its financial position ahead of the planned listing.

Meanwhile, The Sovereign Fund of Egypt has appointed EFG Hermes as the sole global coordinator and bookrunner for the offering, with the government targeting the announcement of the private placement tranche during the first half of July once the fair-value study is finalized.

After years of carrying a heavy debt burden, Qalaa Holdings' Egyptian Refining Company (ERC) has fully repaid its senior debt, paving the way for dividend distributions, subject to shareholder approval, according to a disclosure filed with the EGX.

The company — in which Qalaa holds a 13% stake – is also in the process of repaying USD 200 million in subordinated debt, a move that would further strengthen its balance sheet.

Profitability rebounds:

The debt repayment comes alongside a sharp recovery in earnings. ERC is expected to report net profit of around USD 375 million for the first half of 2026 — including an estimated USD 60 million in June alone — compared with a net loss in the corresponding period of 2025.

Recent financial results reflected the recovery:

ERC reported EGP 33.8 billion in revenue during the third quarter of 2025, broadly unchanged from a year earlier, while net profit surged 437% year-on-year to EGP 931.7 million, up from EGP 173.3 million in the third quarter of 2024, supported by stronger refining margins.

Dates to keep an eye out for

July 2:

EGX is off in observance of the June 30 Revolution anniversary.

July 7:

Delta Insurance - record date for 0.1 bonus shares per original share. The distribution date is July 8.

Housing and Development Bank - record date for 1 bonus share per original share. The distribution date is July 8.

Misr Hotels - record date for 1 bonus share per original share. The distribution date is July 8.

July 29:

GB Corp - distribution date for EGP 0.15 per share. The record date was April 26.

July 30: 

Misr Fertilizers Production - distribution date for EGP 1 per share. The record date was May 3.

Talaat Moustafa Group - distribution date for EGP 0.15 per share. The record date was May 18.

📝 Egypt reached a staff-level agreement with the IMF that paves the way for USD 1.5 billion under the country's USD 8 billion IMF loan program and another USD 136 million through the Resilience and Sustainability Facility, according to a statement. The package, pending Executive Board approval, would bring total IMF disbursements to USD 7.2 billion, with IMF Mission Chief Amine Mati praising Egypt's response to regional shocks, including fuel and electricity price adjustments and a flexible exchange rate that helped absorb portfolio outflows.

🏗️ Modon Holding has awarded a EGP 10 billion infrastructure contract for the first district of Egypt's USD 35 billion Ras El Hekma megaproject to a consortium of Rowad Modern Engineering and Consolidated Contractors Company, according to sources who spoke to Asharq Bloomberg. This marks the second major construction package handed out at the coastal development after Orascom Construction secured a EGP 15 billion contract earlier this year.