Yesterday was yet another bad day for the EGX in general as the market’s main indices lost in excess of 2% apiece with traded value in excess of EGP1.2bn. For EGX 30, the culprit was all stocks, except for MM Group [MTIE] which we published another positive call on two days ago. The index was pulled lower by CIB [COMI], Fawry [FWRY], and Elsewedy Electric [SWDY]. Both Arab and non-Arab foreign institutions ended the day as net sellers (EGP36mn and EGP123mn, respectively). It is not clear whether this has to do with the re-balancing in MSCI EM index or it is a reflection of concerns surrounding geopolitical tensions between Egypt and Sudan on one hand and Ethiopia on the other? Meanwhile, local investors (both institutions and individuals) were net buyers (EGP137mn).
Elsewhere, trading on Dice Sport & Casual Wear [DSCW], the top stock in terms of traded value for the day, was suspended at the start of yesterday’s session until the IFA’s final valuation study was published, suggesting a fair value of EGP2.7/share. We had run a valuation exercise on 29 March and come up with an equity valuation of EGP1bn or EGP1.91/share. Both respective prices are still 72% and 22% above market. Since then, DSCW rose 11% vs. -3% for EGX 30 and +18% for EGX 70 EWI.
POSITIVE
ORHD: Orascom Development Egypt [ORHD] is showing progress in its O West project, having launched the first phase in of Hillside Villas.