Pre-Trading Thoughts

Economists expect the US Federal Reserve to scale back its bond-buying program to begin raising interest rates earlier than expected (March 2022)Fitch Ratings: "Egypt is highly dependent on external financing, exposing it to global liquidity and monetary conditions, which are becoming less accommodative"The restructuring of two army-affiliated companies is ongoing (“Safi” and “Wataneya”); Listing on the stock exchange awaits the onboarding of a strategic partnerCLHO disclosed that Care Healthcare (owns 37.87% of CLHO) is willing to sell a stake of 7.87%-12% to MCI Capital Healthcare, a subsidiary of CICH (FV: EGP5.50, OW); Latter is looking to acquire a stake of 26.21% of CLHO at EGP5.00/share in a voluntary tender offer, at an implied CLHO valuation of EGP8.0 billion; Offer implies a 2022f P/E of 16.6x and EV/EBITDA of 8.4xABUK's 10% stake offering to international and local funds will be executed todayThe Electricity Holding Company has decided to increase its reliance on Mazut in power plants by 400%; Positive for AMOC, which supplies the Mazut for power plantsFawry FMCG to launch ‘Mandoobi’ application, that will digitize the order, delivery, and payment transactions between merchants and fastmoving consumer goods companiesORWE is considering selling or liquidating its subsidiary in China; Represents 0.2% of the group’s sales and 0.6% of total assetsEXPA’s BoD agreed to increase the bank’s issued and paid-in cash capital to EGP5.27 billion, an increase of EGP2 billion, through a rights issue to existing shareholders, at par Aldar consortium is planning to keep OCDI executive management unchangedMahmoud Lashin’s ownership in SPMD went down to 24.039% (-2.976%), after a compulsory sale due to margin trading; SPMD is currently trading at 2022f P/E of 1.9x and EV/EBITDA of 1.4xColliers: The improvement in hotel occupancy rates in Egypt is indication of recovery in tourism to pre-Covid levels