Pre-Trading Thoughts

EGX30 is trading at a weighted average P/E of 7.8x for 2021, equivalent to its lowest reading since January 2016; The market is trading at a forward 2022 P/E of 6.1x, while earnings are expected to grow at aggregated 20% in 2022, after surging 75% in 2021Fed Chairman said that the tapering of monthly bond purchasing could wrap up “a few months sooner” than anticipated; Would open the door to interest rate hikes thereafterCanadian authorities have added Egypt, Nigeria, and Malawi to the travel restrictions listDomestic liquidity increased by about 18% YoY in October, recording EGP5.65 trillionThe project to link Iraq’s electricity grid to Jordan should be finished in the next four months, which will allow Egypt to export electricity to Iraq via JordanCompanies in Egypt will soon be able to list social, ESG, gender equity, and sustainable development bonds on the EGX after FRA approved amendments to the Capital Markets ActGASC has taken advantage of a dip in wheat prices to purchase what could be the country’s largest-ever tender, at c.600,000 tons of wheat; Supports budgetNBE is in talks with an Asian development bank to borrow more than USD 600 million; Supports USD sources within banksCabinet approved real estate sector regulations that cover marketing/project launching, project maintenance, operations, and contract breaches; Discussed in our Real Estate Valuation Update 2022 ReportCabinet approved raising the minimum price for hotel stays in Egypt; ARR in El Gouna is already higher than these levels, with the 9M21 ARR standing at USD95/night; ARR in Taba Heights stood at USD34/night in 9M21, and most Taba Heights’ hotels are five-starsSeven Egyptian companies are looking to participate in Libyan reconstruction projects, including ORAS, SWDY, and Hassan Allam, with a potential value of USD33 billion in totalESRS is arranging around EGP2 billion loan for financing the acquisition of the 18% stake in Egyptian SteelKhales, a subsidiary of EFIH, signed a cooperation agreement to provide services to Misr Insurance customers, through the company’s 320k POSAspire Capital Holding 9M21 net profit fell to EGP566.7 million, compared to EGP867.1 million (-34.5% YoY), Stock is trading at annualized 2021 P/E of 0.4xAyadi is seeking to establish a fully digitized consumer finance company; Competition is intensifying in that space