Pre-Trading Thoughts

Al Ahly Pharos

Please check our earnings expectations excel for companies under coverage in 4Q2021/2021/2022 to know about companies that will enjoy the highest earnings growth in 2022 and lowest P/E multiples for 2022

OCDI board approved Aldar MTO; IFA values OCDI at EGP23.42/share; 29.1% of shareholders have decided to sell in the MTO until yesterday

The government intends to offer a 10-15% stake for sale in ABUK over the next two weeks

A draft law that would regulate the fintech space received a preliminary nod from the House of Representatives in a bid to promote financial inclusion and expand the number of beneficiaries

FAIT 3Q21 consolidated net profit pre-minority interest and appropriations recorded EGP687 million (+26% q/q, +10% y/y), bringing 9M21 bottom line to EGP1.84 billion (+24% y/y); FAIT is currently trading at P/B22 of 0.3x and P/E22 of 3.0x, with ROAE of 12.0%

OFH recorded a 3Q21 net profit of EGP17.9 million on EGP107.6 million of revenues; Stock is trading at annualized 2021 P/E of 16.9x

GAM of IRON (under liquidation) is discussing today the repayment of debts worth EGP11.25 billion, and the transfer of land ownership to the Holding Company for Metallurgical Industries to settle debt obligations

The government is developing a plan to raise the levels of Egyptian merchandise exports to the African continent to USD7 billion by 2022 and USD10 billion by 2025

A thousand companies applied for the fourth phase of the immediate reimbursement initiative for export subsidies

The Parliament's Planning and Budget Committee has postponed the discussion of amendments to the value-added tax law until the current wave of inflation subsides

Commodity Update:

Oil prices at USD73.90/bbl

The Egypt urea index was up 1% w/w to USD945/ton

Polyethylene prices were unchanged w/w at USD1,360/ton

Diesel-HSFO spreads were down 14% w/w to USD182/ton

Caustic soda moved downwards w/w by 13.2%, recording USD782/ton

Steel/Iron Ore spreads are at the USD481 mark, declining by 1% WoW

LME 3M fwd Aluminum prices declined 2% WoW to record USD2,615/ton

Thermal coal prices were muted WoW recording USD143/ton