DEMAND COMEBACK ON MODERATING INFLATION

September 29th, 2019 – Demand growth back on track on more positive economic outlook, with margins reverting back to historical averages We raise our 12M TP c26% to EGP21.6/share for Edita, but cut c16% to EGP12.6/share for Juhayna and c9% to EGP11.5/share for Domty; maintain our OW for all the 3 stocks Companies’ valuations remain...

HC EXPECTS EXPECT THE CBE TO CUT RATES BY 100 BPS IN ITS UPCOMING MEETING

September 23rd, 2019 – HC Securities & Investment assured that headline inflation continued to decelerate for the third consecutive month from its high level in May at 14.1%, with August monthly inflation coming in lower than our expected 1% m-o-m. Economist and banking analyst at HC, Monette Doss said, “We see inflationary pressures largely subsiding...

BANKING ON A PRIVATE-SECTOR PICKUP

August 19th, 2019 – Monetary easing key for resumption of CAPEX lending, in HC’s view This should reflect in lower banking NIMs while strong CAR supports balance sheet growth, on HC’s  numbers HC raises their 12M TP c8% for CIB to EGP87.8/share and maintain OW, leave CAE largely unchanged at EGP51.9/share but downgrade to N,...

HC RECEIVES LICENSE TO ENGAGE IN SHORT SELLING ACTIVITIES

July 14th, 2019 – HC Brokerage was among the first local brokerage firms has received a license from Egypt’s Financial Regulatory Authority under decision no. (268) of 2019. Short selling allows investors to sell equities before they are acquired, and the investment mechanism should lead to increased market liquidity. The FRA issued earlier this year...

HC SECURITIES & INVESTMENT EXPECTS CBE MPC TO KEEP INTEREST RATES UNCHANGED

July 5th, 2019 – HC Securities & Investment expects the Central bank of Egypt (CBE) to keep interest rates unchanged at its next 11 July 2019 Monetary Policy Committee (MPC) meeting. According to Sara Saada, head of macro and financials at HC Research, yearly inflation figures will be largely influenced by favorable base effect in...

EASING CYCLE KEY TO PRICE IN RECOVERY

June 23rd, 2019 – Continuation of the easing cycle by 4Q19e, following the completion of fiscal consolidation measures, should stimulate private investment and GDP growth – External position to further improve on a rebound in FDIs, with portfolio inflows currently leading to EGP appreciation – Capital market reforms along with the resumption of the partial...

EGYPT’S ANNUAL HEADLINE INFLATION DECELERATED TO 14.2% IN MARCH

April 10th, 2019 – Egypt’s annual headline inflation decelerated to 14.2% in March from 14.4% in the previous month, according to data posted by the Central Agency for Public Mobilization and Statistics (CAPMAS). Monthly prices rose 0.8% compared with a rise of 1.7% in February, with food and beverage prices rising 1.5% m-o-m compared with...

EGYPT REPORTED A BALANCE OF PAYMENTS (BOP) DEFICIT OF USD2.06BN IN 2Q18/19

April 1st, 2019 – Egypt reported a balance of payments (BOP) deficit of USD2.06bn in 2Q18/19, down from a surplus USD0.51bn a year earlier and USD0.28bn in the previous quarter, data posted by the Central Bank of Egypt (CBE) showed. (CBE) HC’s comment: Egypt’s capital and financial account registered net inflows of USD0.23bn, down from...

HC SHEDS LIGHT ON COMPELLING STORIES IN 2019

February 10th, 2019 – “We expect a 1-year delay in the easing cycle and remain bullish on prospects of the Egyptian economy” – We are bullish on construction, energy-related, consumer staples, financials, tourism, automotive, and select real-estate names – With a big portion of our coverage undervalued, our focus is on compelling stories with low...

EGYPT’S NET INTERNATIONAL RESERVES (NIR) DECLINED TO USD42.551BN IN DECEMBER

January 8th, 2019 – Egypt’s net international reserves (NIR) declined to USD42.551bn in December from USD44.513bn in the previous month, according to Central Bank of Egypt (CBE) data. The decline was mainly attributable to: (1) redemption of treasury bills held by foreign investors whose holdings of Egyptian T-bills dropped to USD10.8bn as of the end...