Flash Report /
Egypt

Egypt Equity Strategy: What the charts are telling us – oversold or challenged?

    Al Ahly Pharos Securities Brokerage
    12 January 2020

    We look at the company charts to see where value currently lies. Please see the attached report for the charts and more details.

    Key conclusions from the Charts

    • Banks and Financial Services| COMI &HRHO offer 20%; CICH & EXPA oversold
    • Food and Beverage| Looks attractive relative to historical averages
    • Consumer Diversified| Favor EAST & MTIE, but both await catalysts
    • Healthcare and Pharmaceuticals| Attractive relative to their own norms
    • Chems and Petchems| EKHO, SKPC & Ferts offer 20%; KIMA & CCAP await earnings catalyst
    • Contractors, Cables, and Steel| SWDY & ORAS are the sole picks here
    • Aluminum, Cement, and Tiles| No picks in town due to weak industry dynamics
    • Real Estate| TMGH and MNHD extremely oversold, despite sector concerns 
    • Telecom| Oversold but lack catalysts
    • Logistics| Neutral for now

    Stocks offering c.20% “rebound”

    • COMI, HRHO, ADIB
    • SWDY, ORAS
    • EAST
    • EKHO, SKPC, CCAP
    • ABUK, MFPC, EGCH, and EFIC

    Oversold but lacking catalysts 

    • CICH, QNBA, EXPA
    • OLFI, PHAR
    • TMGH, PHDC, MNHD
    • ETEL, RACC

    Attractive relative to historical norms

    • JUFO, EFID, DOMT
    • CLHO, ISPH