KEY THEMES
The situation in Ukraine has global put equity markets under pressure. U.S. equities rose yesterday after a very tough session, with indices closing in green after hitting its worst levels since April 2021. However, this morning, both of Asian shares and U.S. futures tumbled with investors nervous about the situation in Ukraine and in anticipation to the Fed’s directions amid worries about a move to tighter monetary policy globally. Moreover, Oil prices bounced back after NATO said on Monday it was putting forces on standby to reinforce eastern Europe.
Elsewhere, Sidi Kerir Petrochemicals [SKPC] has reported its preliminary 2021 figures. SKPC ended the year with net earnings of EGP535mn vs. only EGP26mn in 2020. However, what’s more important is the sequential recovery in Q4 2021. SKPC managed to register a bottom line of EGP177mn (+136% q/q), on the back of 24% improvement in revenues of EGP1.37bn as volumes recovered. Furthermore, Q4 2021 GPM improved substantially by 9pp q/q to 25%. SKPC is currently traded at TTM P/E of 8.5x.