Pre-Trading Thoughts

Pharos Expectations for the February 2022 EGX30 Rebalancing| Additions: EFIH (3.7%), EMFD (0.7%), and ADIB (0.4%). Deletions: ORWE, PRDC, FDWA, ASPI, EGTS, and RAYA. Notable Weight Changes: ABUK's weight should increase from 4.0% to 4.9%, TMGH's weight should decrease from 4.7% to 4.0%, HRHO's weight should decrease from 4.8% to 4.1%.Egypt will receive a USD368 million loan from the Arab Monetary Fund (AMF)Egypt aims to increase exports to USD40 billion by the end of 2022 (+25% YoY)The EU has filed a legal challenge with the World Trade Organization against Egypt over its import registration system Oil prices continue to rise, as bbl approached USD90 last week ABUK released positive 2Q21/22 bottom line at EGP1,913 million (+138% YoY, +48% QoQ); ABUK is currently trading at 2022/2022 P/E of 4.5xCIRA released 1Q21/22 net profit before NCI at EGP100 mn (-15.4% YoY); Despite revenue growth, a drop in margins was witnessed due to the rise in expenses due to the company’s expansions, which haven’t yet realized profits, as well as the rise in financing expenses; CIRA is currently trading at a FY21/22f P/E of 27.5x and EV/EBITDA of 11.3xCIRA raised their stake in Egyptian EdTech startup Orcas to 12%OIH has announced the completion of the sale of its subsidiary “Trans World Associates Ltd” equivalent to approximately EGP0.10/OIH share; Not decided whether there will be a dividend distribution from the sale proceedsEGBE released 4Q21 net profit pre-minority interest and appropriations at EGP189 million (+9% q/q, +19% y/y), attributable to the provisions' reversals amounting to EGP115 million; EGBE is currently trading at P/E22 of 4.74x and P/B22 of 0.45xFRA is planning to provide new green and Islamic products in the microfinance sectorRAYA's subsidiary Aman and CCAP's Taqa Arabia are setting up a fintech company targeting energy consumers