Today’s Trading Playbook
KEY THEMES
As we continue to monitor the Q2 2020 earnings season, we should not forget that some companies are also wrapping up their fiscal years ended 30 June. This means it’s dividend season for state-owned enterprises (SOEs), most of which end their fiscal years on 30 June. We believe stocks with relatively high dividend yields can safeguard portfolios from the volatility we are experiencing nowadays, let alone double-digit yields in some instances. We think attention will soon be paid to such companies, of which we pick seven stocks and two industries (mainly SOEs) with relatively high dividend yields. The seven stocks are ABUK, ALCN, CSAG, EAST, EXPA, MICH, and PACH. The two industries are mills (namely EDFM, CEFM, SCFM, UEFM, WCDF) and pharmaceuticals (namely ADCI, AXPH, CPCI, and NIPH).
POSITIVE
While the market was down last Thursday, RAYA stood out as one of the few gainers in the market. The stock jumped 7.2% on the day, absent any disclosure at the time. Over the weekend, Al-Mal reported that National Bank of Egypt has submitted an offer to acquire a minority stake in RAYA’s subsidiary Aman Holding, the conglomerate’s financial services arm. The news in itself is not new to the market; RAYA had earlier in the year received interest from several institutions. However, FWRY’s recent performance may support Aman Holding’s valuation and hence extend RAYA’s positive stock performance.
Now, on to the top news and analysis for the day.