KEY THEMES
Global equities took a breather on Monday’s morning, with Asian share markets paring losses and U.S. futures indices rallying on early Monday’s trading. This took place in light of news that U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to hold a summit on the Ukraine crisis. Such news sent some hope that maybe there’s a diplomatic workout to the situation of Russia-Ukraine. Furthermore, Brent oil prices went notably down, as the news of holding a summit between U.S. and Russia calmed down the notion of tight oil supply for long.
Elsewhere, Abu Dhabi Islamic Bank - Egypt [ADIB] reported its 2021 figures, with a satisfying bottom line of EGP1.4bn (+20% y/y), where earnings came broadly in line with our estimates. ADIB is currently traded at 2022e P/E of 2.9x and P/BV of 0.7x. We note that the stock faced downward pressures ever since the bank announced its plans for a rights issue in 2022. ADIB plans to conclude raising its paid-in capital to EGP5bn by August 2022, which will be through a combination of rights issue and bonus shares distribution. While the impact of the rights issue is a short-term negative for ADIB, we note that it will have a minimal impact on our 12MPT as well as long-term growth prospects. We remind you that we have an Overweight recommendation on ADIB, with our 12MPT at EGP21.7/share (ETR +59%).