Wednesday’s trading was somewhat similar to Tuesday’s; Arab and non-Arab foreign institutional investors were net sellers with outflows of EGP8mn and EGP115mn, respectively. Also, local investors remained net buyers with inflows reaching EGP117mn. Let’s digest the highlights from yesterday’s trading:
- EGX 30 was pushed down yet another 1.5%, stung by sell-offs in blue chips, namely CIB [COMI] (-3%), Fawry [FWRY] (-2%), and Elsewedy Electric [SWDY] (-2%).
- EGX 70 EWI (+2%) recovered most of its losses the day before. Incidentally, other names were a bit higher. For instance, Dice Sport & Casual Wear [DSCW] (+2%) extended its gains from the day before. Interestingly, we saw heightened activity in stocks of three companies with cross-holdings, namely Beltone Financial Holding [BTFH] (+18%), Contact Financial Holding [CNFN] (+10%), and their parent company Orascom Financial Holding [OFH] (+4%). It is not yet clear whether these moves, which come with above-average trading activity have anything to do with a potential corporate action in the making.
- Egytrans [ETRS] rose (+6%) after an IFA valued it at EGP414mn or EGP13.3/share, above its initial average valuation range of EGP12-13/share. The valuation came in 22% above Tuesday’s closing price, leaving another 15% upside. By way of background, this IFA’s valuation study is part of a potential tie-up with HA Utilities (HAU) which was also valued by the same IFA at EGP721.5mn, just below its initial average valuation range of EGP680-800mn announced last March. This is a reverse merger with an implied share swap ratio of 1.7 ETRS share to each HAU share, all pending the financial regulator’s approval.
- EFIC [EFIC] rose 7% yesterday following our POSITIVE call on Tuesday – now up 4% since our call. However, MOPCO [MFPC], the other fertilizer POSITIVE call we had made on Tuesday, was down yet another 2%, now down 4% since our call.