OUR ANALYST OF THE WEEK- Omneya El Hammamy, associate vice president of research at Naeem Holding for Investment (Linkedin).

My name is Omneya El Hammamy and it was my dream to work in financial and capital markets. I graduated from the German University in Cairo with a double major in economics and finance, but my first job was as a retail management information systems analyst at BNP Paribas. After three years there, I decided to shift careers and began to study for the CFA. It was one of the most impactful decisions in my life and I think the CFA adds a lot of credibility in the market, not to mention the technical know-how. My entry into the field was at Prime Holding in 2015. At first I was treated like a fresh graduate since my previous job was irrelevant to the role. But I persevered and climbed up the ranks and in 2018 I joined Naeem as the associate vice president of research.

I now cover F&B, healthcare, and consumer stocks in Egypt. I think it's important to have various exposures to sectors to cultivate more diverse knowledge about the market and a better view of the economy. However, the sector I enjoy covering the most is F&B, as I use the products from the companies I cover and it makes it feel relevant to me personally.

The best part of my job is that it keeps you aware of everything that’s happening in the world, whether it's political or economic. The learning curve is very steep and the constant competition drives you to make that trek upwards by always gaining more knowledge and insight.

The worst part of my job is the stress. It gets better with time, but it’s very important to find ways to let it out. For me, I workout several times a week and also draw or paint mandalas. Both activities relax me and help me keep up with the demands of the job.

My theory of investment is to have a long-term view. I like to invest for a minimum period of 3-5 years, and that means that I put an emphasis on value investing. I look at fundamentals and how they could be affected in the long run by keeping up with regulations in the works, industry-specific issues, and the overall macroeconomic environment. I think a top-down approach at looking at the market is important as it puts things in perspective.

The most important factors I look at before recommending an investment are the business model and the management. For the business model I look at the products the firm is rolling out as well as their future outlook, while in management, it’s important to focus on their credibility and how they react in times of uncertainty and crisis.

Out of the three sectors that I cover, I think healthcare has the most potential. There are so many good indicators and developments on the way that could support a fast recovery. The pandemic has put healthcare in the limelight, and investors see its importance in the long run. We’re also expecting a lot of M&As to fuel growth in the sector. In Egypt, we’re also excited about the pharma companies who have begun to manufacture covid-19 vaccines, as it could improve retail sales and even help our exports in the sector. Meanwhile, Government initiatives such as the Universal Healthcare Act can also help boost volumes for labs, hospitals, and other medical facilities.

I don’t think 2021 will be the year of Egypt. The markets are suppressed by the GERD dispute as investors shy away from the lack of visibility on what the future holds. I think as long as this political risk remains, we won’t be seeing a turnaround story anytime soon. We’re also waiting for tourism to pick up to pre-pandemic levels, and for the vaccine rollouts to progress to provide optimism that the economy is going to recover.

If I had to expand my coverage, I’d like to cover more emerging markets. I find them interesting as they often include turnaround stories brought on by different catalysts. They’re fast paced and require you to really tie together all the events that are happening at once.

I’ve been watching a lot of documentaries lately. The last great things I watched were The Social Dilemma, The Great Hack, and Secrets of the Saqqara Tomb. I’ve also been checking out more foreign films and I really enjoyed the Spanish movie The Platform and Italian film Perfect Strangers.

The last great things I read were The 48 Laws of Power, Think and Grow Rich, and The Power of Habit.

In my down time, I’ve started trying to learn to improve my cooking skills. This was one of the discoveries I made about myself during the lockdown [laughs]. I try new recipes and experiment with different cuisines.

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MARKET NEWS-

Orascom Construction will distribute dividends of USD 0.23 per share to shareholders on the Nasdaq Dubai while EGX shareholders will receive the equivalent amount in EGP, according to a disclosure (pdf). The record date is 2 August while payment will take place on 10 August.

MARKET WATCH-

The EGX30 rose 1.9% at today’s close on turnover of EGP 1.35 bn (10.3% above the 90-day average). Local investors were net sellers. The index is down 3.8% YTD.

In the green: Fawry (+7.5%), Ezz Steel (+3.8%) and CIB (+2.5%).

In the red: Edita (-2.5%), Eastern Company (-1.4%) and Abou Kir Fertilizers (-0.4%).