KEY THEMES
Realizing that almost all international institutions believe that Egypt as a market is very cheap and as a country is well positioned for a faster recovery compared to its neighbors, one comes to wonder why aren’t foreign investors coming in? In the stock market, foreigners have been net sellers throughout much of the year with their direct investments targeting the usual oil and gas sector. Maybe we can blame it on COVID-19, or maybe we can blame it on the rain. What we know for sure is that the country is poised for investments, so we come to think we had enough of the talk, and it’s time now for foreign investors to walk that talk.
So which stocks can foreign investors look at when considering Egypt’s stock market? First off, it would be large caps. Remember The Big Shift? Large caps means CIB [COMI] which is yet to report it Q3 results. It also means Telecom Egypt [ETEL] whose shares could re-rate once again with talks about and deal with STC [KSA: 7010] to sell its Vodafone Egypt [VODE] stake resurfacing.