KEY THEMES
U.S. equities ended last week under pressure, as the earnings season kicked off with a bit of weakness in banking stocks. Moreover, still the upward trajectory in bond yields is spooking investors’ sentiment. Meanwhile, oil prices closed last week on a bullish note as mounting tensions between Russia and Ukraine raising the question of a future disruption to global crude
supplies. Brent oil prices were traded above the USD86/bbl level.
Elsewhere, Taaleem Management Services [TALM] has reported its Q1 2021/22 figures, with bottom line growing by 23% y/y to EGP71mn. Earnings improved on the back of higher revenues of EGP172mn (+27% y/y), driven by higher tuition fees. In addition, TALM’s GPM widened 363bps to 71%. Despite operating the same sector which Cairo For Investment & Real Estate Development [CIRA] operates, TALM trades at discount to CIRA. On a TTM basis, TALM's P/E is 24% slimmer than CIRA, which could be attributable in view of higher perceived growth for CIRA. However, we argue that at current market prices, TALM discount is in fact overly stated.