KEY THEMES
Lately, a bunch of quarterly results have popped up, given that we’re already half way through June 2021. It’s interestingly notable how solid Q1 2021 sounded for many companies so far. We note that, the majority of the names related to or owned by Pioneers Holding’s [PIOH] have seen a robust growth y/y during Q1 2021. This includes United Housing & Development [UNIT] which achieved 38% growth in net earnings. Also, Electro Cable Egypt’s [ELEC] bottom line grew 71% on higher revenues and improved GPM. Last but not least, both of Giza General Contracting [GGCC] and Elsaeed Contracting [UEGC] have seen their EPS growing in Q1 2021 by 126% and 69%, respectively. The strong results are the product of improved fundamentals when compared to last year, as Q1 2020 is considered a relatively weak base to the majority of market sectors. We believe such set of results will decorate PIOH Q1 2021 consolidated figures. Also, this could reflect positively on the subsidiaries’ market prices.
Elsewhere, we mentioned here before in our Trading Playbook dated 2 June 2021, how historically June is a bad month for the EGX 30. We mentioned that since 2005, the index monthly close in June came 37.5% (6 times) in the positive territory, whereas 62.5% (10 times) its monthly close came in red. We also said that in the 62.5% of time, when the index scores a negative monthly close, the average monthly return is -6.2%. So far into June, EGX 30 is down 4% month to date, while EGX 70 EWI is up a solid 2%.