KEY THEMES
Today is officially the last day of summer with only 10 days before Q3 2020 ends. We should expect higher trading activity stepping into Q3, followed by the release of third-quarter results which should be better than the prior quarter. The market will likely continue to be hyped about Egypt’s “financial inclusion” initiative as reflected in the upbeat performance of Fawry [FWRY] so far, especially with a potential stake sale of Ebtikar’s Masary and Bee which are indirectly owned by B Investments [BINV] and MM Group [MTIE]. Meanwhile, EFG Hermes Holding [HRHO] just exited one of its solar power investments at a 14% IRR on a GBP-denominated investment in just three years. HRHO continues its due diligence for Arab Investment Bank (aiBank), which would complement the firm’s financial services with commercial banking.
POSITIVE
HRHO, BINV, MTIE: All three names are yet to reflect further value unlocked by M&A activity and asset monetization.