KEY THEMES
It’s the last day of the week, with almost half the month of October behind us. EGX 30 is up 3.1% mtd, while EGX 70 EWI is down 0.4% - in line with the big shift we alluded to here earlier in October. Market performance continues to be led by the financial sector (mainly banks). Meanwhile, GB Auto [AUTO] hit an 8-month high yesterday as investors re-rate its GB Capital non-banking financial business and in view of a potential recovery in car sales. Generally speaking, we believe investors should consider other EGX 30 index components that have been lagging behind, including Telecom Egypt [ETEL] and TMG Holding [TMGH]. We suggest you scan the market by taking a look at our EGX Valuation Multiples daily report to pick out those neglected stocks.
POSITIVE
TMGH, ETEL: News of another mega project for TMGH in Capital Gardens City, the new city planned near Badr City and close to the New Administrative Capital, may help re-rate the stock higher over the coming days, especially with tourism recovering slowly. The new project will add more than 50% to TMGH’s current land bank. Elsewhere, we remind our clients with ETEL which—notwithstanding any deal concerning Vodafone Egypt [VODE]—is very cheap.
Now, on to the top news and analysis for the day.