KEY THEMES
U.S. equities ended yesterday down, marking the third consecutive session to close in red territories, feeling the jitters of Russia-Ukraine tensions development. Generally, sentiment for risk assets is spooked by the underlying geopolitical tensions, which caused Asian shares, alongside European stocks to weaken as well. On other hand, Brent oil prices surged to as high as USD96.8/bbl, as traders in the oil market are expecting supply shocks.
Here at home, both the EGX 30 and EGX 70 EWI slipped 0.3% and 0.96%, respectively, completing a 3-session losing streak for the EGX 30. Despite the slippage, trading volumes were considered thinner.
Elsewhere, Abu Qir Fertilizers’ [ABUK] Q2 2021/22 earnings grew on a substantial margin improvement and a top line leap. Net earnings came in at EG1.9bn (+138% y/y, +48% q/q) on revenues of EGP3.6bn (+57% y/y, +35% q/q). Top line growth was accompanied by rich GPM of 65.7% (+7.2pp q/q). ABUK is currently traded at 2021/22e P/E of 4x and EV/EBITDA of 2x. We have an Overweight rating on ABUK with our 12MPT of EGP31.0/share (+49%). For more details, check out our results commentary note from yesterday.