Today’s Trading Playbook
POSITIVE
CANA, EXPA: We continue to prefer these two small-cap banks, and we might throw in SAIB (traded in USD) as well, noting that both CANA and SAIB have the same major shareholder, namely Arab International Bank, with stakes of 41.5% and 46.1%, respectively. CANA’s paid-in capital is currently at EGP2bn, while SAIB’s stands at USD150mn (equivalent to EGP2.2bn). Combined, the two bank’s paid-in capital would be EGP4.4bn, just a bit shy off the CBE’s minimum EGP5bn threshold. Thus, we think it might make sense to combine both banks at some point. Just an idea!
Now, on to the top news and analysis for the day.