Today’s Trading Playbook
KEY THEMES
U.S. equities rose aggressively yesterday, whereas bond yields went down, despite the Fed hiking rates by as much as 75 bps, and signaling more. However, Fed Chair mentioned that the hiking cycle target would be a “neutral” level, which will not be encouraging nor hindering more growth. Bullish waves continued to travel into other markets, with European futures point to a green opening, Meanwhile, Brent oil prices bounced back above the USD100/bbl as sentiment improves.
Elsewhere, news sources points to a possible interest from ADQ to acquire a state owned Sugar manufacturer listed on the stock exchange. This of course leaves no option but to think about Delta Sugar [SUGR], given it’s the only state owned Sugar manufacturer listed on the EGX. While such news still within the space of market chatters, the stock rose in a convincingly fashion in the last couple of days. We remind you that we issued a TAKEStock report on SUGR dated 8 June 2022, saying how SUGR’s price is mismatching its improving fundamentals big time. We note that SUGR stock rose 20% since we published our TAKEStock report. Since SUGR’s fundamentals still in place, we remain bullish on the name, with our 12MPT of EGP22.2/share (ETR +68%).
Now, on to the top news and analysis for the day.