Today’s Trading Playbook
Mohamed Saad Equity Analyst
KEY THEMES
The past year was not necessarily the most user-friendly year for most of investors. Together we saw many momentum switches, liquidity travels, correlations being broken, and others newly established. However, this whole thing is only a fair translation to investors’ quest to price the effect of current reality on future results.
Here is an interesting figure, out of the current EGX 30 constituents, 24 name had viable P/E data on both 31 December 2019 and 31 December 2020. Out of the 24 sample, 14 (or 58%) stocks had witnessed a P/E de-rating, whereas 10 stocks (or 42%) have seen their P/E re rate higher.
The name that saw its P/E bounce back the most was EXPA, where the stock that saw its P/E slid the most was AUTO. It is worthy to mention that the EGX 30 P/E discount to MSCI EM widened during the period from 20% to 54%. The below chart depicts the average y/y P/E change summarized per sector.