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USD CBE auction (Tuesday, 23 Aug): 8.78 (unchanged since Wednesday, 16 March)
USD parallel market (Tuesday, 23 Aug): 12.50-12.70 sell (compared to 12.50 sell on Monday, 22 Aug)

EGX30 (Tuesday): 8,186.7 (-0.7%)
Turnover: EGP 455.19 mn (5% above the 90-day average)
EGX 30 year-to-date: +16.9%

THE MARKET ON TUESDAY: EGX30 fell 0.7% on the day. The top performers were Egyptian Iron and Steel, Arabian Cement Company, and TMGH. On the flip side, the worst performers were Edita Food Industries, Emaar Misr, and Domty. The index’s largest constituent, CIB, was down 1.2% on the day. Market turnover was EGP 455.2 mn, and foreign investors were the sole net sellers.

Foreigners: Net short | EGP – 33.5 mn
Regional: Net long | EGP + 9.5 mn
Domestic: Net long | EGP + 24.0 mn

Retail: 58.4% of total trades | 58.5% of buyers | 58.3% of sellers
Institutions: 41.6% of total trades | 41.5% of buyers | 41.7% of sellers

Foreign: 27.9% of total | 24.2% of buyers | 31.5% of sellers
Regional: 7.5% of total | 8.5% of buyers | 6.5% of sellers
Domestic: 64.6% of total | 67.3% of buyers | 62.0% of sellers

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PHAROS VIEW

EK Holding 2Q-16 | Sprea Misr and NatEnergy drive performance; Maintain “Buy” with FV of USD0.70

EKHO reported net income of USD 13.2 mn in 2Q-16, +5.5% y-o-y on consolidated revenues of USD 89.5 mn. 1H-16 net income recorded USD 35.0 mn, + 27.2% y-o-y on consolidated revenues of USD 194.2 mn. Highlights of this research note (tap here to download):

• Sprea Misr: Despite seasonal revenue drop, margins expand on cost control
• NatEnergy: Slight revenue drop due to currency translation; but margins stay solid
• AlexFert: Weaker Urea prices hits profitability despite improved utilization rate
• USD0.51 is a solid floor valuation, discounting net cash, Sprea and NatEnergy
• Maintained positive developments for AlexFert would raise floor valuation to USD0.59
• Attractive dividend yield on the USD, c.6% for FY2016
• If FX shortage is resolved, stock liquidity to improve

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WTI: USD 47.66 (-0.91%)
Brent: USD 49.60 (-0.72%)
Natural Gas (Nymex, futures prices) USD 2.76 MMBtu, (-0.04%, Sep 2016 contract)
Gold: USD 1,341.70 / troy ounce (-0.33%)

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ADX: 4,535.4 (+0.6%) (YTD: +5.3%)
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QE: 11,116.4 (-0.9%) (YTD: +6.6%)
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BB: 1,153.2 (+0.1%) (YTD: -5.2%)