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Monday, 14 January 2019

Egypt is Citi’s most attractive frontier market for 2019

Egypt is Citi’s most attractive frontier market for 2019, according to a research report picked up by CNBC Africa that notes “the Sisi government is pushing ahead with an ambitious package of reforms, and while the country’s 2016 IMF programme has faced some delays, the programme is likely to underpin macroeconomic stability, supported by growth in gas production and tourism.”

Other good news on Egypt: Valuations are low; earnings momentum is good, defying the trend in frontier markets; and economic growth is above average.

Citi sees no significant devaluation in the cards, writing that “despite the recent surge in inflation, we expect currency stability and see decent upside among financials (CIB), construction (Orascom), real estate and consumer staples (Edita, Juhayna).”

Citi’s other tops picks on the frontier include Kenya and Romania.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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