OUR ANALYST OF THE WEEK- Mai Atef, senior asset management analyst at HC Securities Egypt (Linkedin).

My name is Mai Atef and I’m currently working as a senior asset management analyst at HC Securities. I graduated with a major in economics from Cairo University and I also have a minor in computational social science. I started work at the Planning Ministry in the strategic planning unit, which was a great experience and gave me exposure to many different sectors early on in my career, from K-12 education and vocational training to urban planning. It helped me learn how to align the interests of several stakeholders, and it’s been very fulfilling to see the initiatives I worked on come to light years after leaving the ministry.

I then moved to Prime Holding where I was an economist for a brief period of time — it was actually during the EGP float — before becoming an equity analyst. I stayed at Prime for three years and then moved to Shuaa Securities Egypt as a sell-side analyst. Next up was Delta Inspire, which operates more as a VC and often saw me work with SMEs. Finally, I landed my current position at HC where I mostly cover basic materials, consumers, and fintech.

The best part of my job is that I’m constantly learning new things. It’s a requirement to read a lot about different topics, as this keeps you up to date with what’s happening in the world. With time, you learn to relate things happening on different continents to each other. It’s also very nice to be able to make recommendations that drive decision making and knowing you were part of the outcome.

The worst part of my job is that it’s demanding. However, it’s also very rewarding so it kind of offsets the stress for me.

My theory of investment is to look long-term and go for stocks with strong fundamentals. I also pay attention to companies’ business models and management — especially how they react to events happening in the market and their industry. Finally, their client management is something important to look at, as it reflects their transparency and communication.

I recommend stocks based on the risk-appetite of the specific investor I’m talking to. It’s important to settle the tone of the investment early on, and I often choose a straightforward approach and ask how much risk they’re willing to take. The answer can vary, with some choosing to take on more high-return stocks while others would rather stick to T-bills and bonds. I usually encourage some diversification between both tracks. These days most people are in the middle of the spectrum and not many people go to extremes in either direction.

2022 could be the year of Egypt, but it really depends on certain decisions currently being taken on the capital market. There’s also a lot happening on the international front that is causing uncertainty, such as the Fed’s decision on interest rates and the current leadership at the Fed, including Jay Powell’s renomination and Lael Brainard’s appointment as vice-chair. But there are positive indications as well, such as the stream of IPOs slated for next year which could bode well for the EGX, especially if there was a greater role for the private sector in the economy.

The last great thing I watched was Maid. It really showed violence and abuse from different perspectives, and the show itself was beautifully created. I also enjoyed The Playbook, which shows sports coaches reflect on how they achieved success.

All my reading has been related to the courses I took as part of the Fintech Academy. The academy is a program by Knowledge Officer and GIZ that really delves into fintech and startups. They take a broad approach at first, but also focus on Egypt and the region. I went into the program when I was still at Delta Inspire, and it really helped me in general. It was interesting to learn about the dynamics of early entrepreneurs and meet and work with people who have startups or are aiming to launch them. I also joined the Venture Capital program at the AUC School of Business which gave me insights from the other perspective, as it looks at how you would think and act if you’re part of an investment company. Both programs really help you build connections in the market.

At one point, I hope all my interests will come together in my job. I enjoyed the development aspect at the finance ministry of course, and working with startups. I see it happening as impact investing and ESGs become more important in Egypt.

I’ve recently gotten into rowing. I like that it's a sport that you can start your day with and that it entails a lot of discipline and consistency.

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EARNINGS WATCH-

Egyptian Resorts Company (ERC) reversed its losses in 3Q2021, reporting EGP 9.2 mn in net income, compared to a net loss of EGP 1.5 mn during the same quarter last year, according to a company financial statement (pdf). ERC revenues inched upwards 38.5% y-o-y to EGP 61.9 mn during 3Q2021. The group reported losses worth EGP 4.3 mn during 9M2021, falling from the first nine months of last year, while 9M2021 revenues fell 17.9% y-o-y to EGP 103.5 mn.

MARKET ROUNDUP-

The EGX30 rose less than 0.1% at today’s close on turnover of EGP 968 mn (33.6% below the 90-day average). Foreign investors were net sellers. The index is up 4.8% YTD.

In the green: Palm Hills Development (+5.2%), Raya Holding (+3.7%) and Pioneers Properties (+2.6%).

In the red: Abou Kir Fertilizers (-1.1%), Eastern Company (-0.8%) and CIB (-0.6%).