Today’s Trading Playbook
KEY THEMES
Yesterday, we saw the launch of the ICT conference with focus on technology in general and financial technology in specific. Some companies plan to tap into new technology, such as 5G, including Vodafone Egypt which is 45% owned by Telecom Egypt [ETEL]. e-finance [EFIH], the most recent newcomer to the EGX, will definitely be one of the beneficiaries of implementing such new technologies. That said, we think Telecom Egypt is poised to benefit indirectly through Vodafone Egypt which in turn owns 20% stakes in Masary and Bee, two e-payment platforms. As we continue with the Q3 earnings season, we look forward to see a continuation of the high growth registered by Telecom Egypt in H1 2021. The stock is still ridiculously cheap at a P/E of 4x.
Now, on to the top news and analysis for the day.