Today’s Trading Playbook
Amr Hussein Elalfy CFA, Head of Research
KEY THEMES
With most Q2 2020 results out, we now turn to look at each stock separately, considering its idiosyncratic catalysts. These could be in the form of corporate actions, M&A activities, or simply reassuring signs of solid financial results down the road.
POSITIVE
MICH, ISPH: Misr Chemical Industries [MICH] continues to deliver sustainable profitability month after month, which is one of the reasons we had included the stock on our stock picks list. Meanwhile, Ibnsina Pharma [ISPH] which has underperformed so far in 2020 may be buoyed by its proposed 17% bonus share.
neutral
EXPA: Export Development Bank of Egypt’s [EXPA] 2019/20 results may not be much of a catalyst for the stock in the short term. But there are two medium-term catalysts that we see: (1) a potential bonus share distribution to prop up its capital as a step to meet the CBE’s new minimum capital requirement and (2) a lifting of foreign ownership limits. For now, we see the results as neutral.