Sunday, 30 May 2021

Eastern, Oriental Weavers report rising profit + Oza sees “geopolitics” weighin on Egyptian shares

EARNINGS WATCH- Eastern Company posted a 47% increase in its bottom line in 3Q2020-2021, reporting earnings of EGP 1.35 bn from EGP 914.19 mn in the same period a year earlier, the company said in an earnings filing (pdf). Revenues rose in the company’s third quarter to EGP 16.1 bn from EGP 14.1 bn.

Oriental Weavers’s net income after tax and minority interest came in at EGP 300 mn in 1Q2021, up 72% y-o-y from the same quarter last year, according to its quarterly financials (pdf). Sales rose 22% y-o-y to EGP 2.76 bn during the quarter.

MARKET ROUNDUP-

The EGX30 rose 0.6% at today’s close on turnover of EGP 1.37 bn (5% above the 90-day average). Regional investors were net sellers. The index is down 5% YTD.

In the green: CI Capital (+8.4%), Pioneers Holding (+7.2%) and Palm Hills Development (+3.9%).

In the red: Ibnsina Pharma (-2.1%), Export Development Bank of Egypt (-2.1%) and MM Group (-2.1%).

FROM THE REGION- Stock exchanges elsewhere in the Middle East are closing the month of May in the green as major economies in the region rebound thanks to rising vaccination rates, higher oil prices, private sector growth and the lifting of restrictions, Abu Dhabi-based International Securities head of research Harshjit Oza said, according to Bloomberg.

Geopolitics, however, continue to weigh on Egyptian shares, Oza said, without offering further context. The UAE’s blue-chip indices are leading gains, with benchmark gauges in Dubai and Abu Dhabi en-route to end the month up 8.4% and 7.8%. The UAE is followed by Israel, another global leader in the vaccine rollout, whose main market gauge is on track to finish 4% higher, shows Bloomberg data.

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