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Monday, 15 February 2021

Dreaded FY2020 earnings season is upon us

The EGX30 rose 0.2% at today’s close on turnover of EGP 1.6 bn (10.1% above the 90-day average). Foreign investors were net sellers. The index is up 6.28% YTD.

In the green: MM Group (+11.2%), Fawry (+2.4%) and Palm Hills Development (+1.2%).

In the red: Export Development Bank of Egypt (-1.7%), ElSewedy Electric (-1.4%) and Sidi Kerir Petrochemicals (-1.4%).

EARNINGS SEASON IS IN FULL SWING, with a number of companies releasing their FY2020 earnings reports (a tough FY if there ever was one). Prime Research feels that so far, results have had a minimal impact on market movements, with “hyped stocks” including MM Group and ANFI moving independent of earnings.

Odin Investments sank deeper into the red in 2020, producing a net loss of EGP 2.2 mn, down 84% from a EGP 1.2 mn loss the year before, according to the company’s earnings release (pdf). This came despite revenue increasing 25% to EGP 16.79 mn.

State-owned Egyptalum’ net losses eased to EGP 341 mn in 2H2020 from EGP 596 mn in the same period in 2019, the company said in an EGX filing (pdf).

Egypt Gas’ net profits fell almost 50% to EGP 84.6 mn in 2020, down from EGP 164.9 mn the year before, according to an EGX filing (pdf). Revenues rose to more than EGP 4 bn, compared to EGP 3.75 bn in 2019.

MARKET MOVING NEWS-

Bidding war for ANFI intensifies: A consortium of investors that includes Egyptian businessman Ahmed El Saba and Saudi Arabia’s Mostafa El Humeidan has made a bid to acquire 75-90% stake in Alexandria National Company for Financial Investments (ANFI) at a price of EGP 7.48 per share, ANFI announced today in a bourse filing (pdf). This is the third offer to acquire the brokerage house in as many months, after Zeta Investments submitted an offer to purchase 90% of ANFI at EGP 5.51 per share, and Kayan Sustainable Development, which is also looking to buy 90% of the firm.

Who owns what? KWIN currently owns some 40% of ANFI’s shares, while ADIB directly holds 9%. The Gulf lender has a total indirect stake amounting to 84.99%, due to owning a 74.75% stake in KWIN and its subsidiary, ADI Lease, holding a 34.99% stake.

ALSO FROM THE EGX- The board of Maridive Oil & Services has approved the sale of of 100% of its subsidiary Maridive Offshore Projects to Jeddah-based Al Subaie Investment Group for USD 48 mn, the company said in a bourse statement (pdf).

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