Egyptian bank CIB a ‘huge opportunity’ after stock fall

It comes after the lender’s stock fell to its lowest levels since 2016 last week

  
Customers and security guards stand in front of a branch of the CIB Bank in Cairo January 31, 2010.

Customers and security guards stand in front of a branch of the CIB Bank in Cairo January 31, 2010.

REUTERS/Tarek Mostafa
 
DUBAI: Egypt’s Commercial International Bank (CIB) is a top pick of Neem Brokerage because of its attractive price-to-book ratio.


It comes after the lender’s stock fell to its lowest levels since 2016 last week. The stock is down by more than 16 percent since the start of the year.

“We see it is a huge opportunity,” Allen Sandeep, research director at Neem Brokerage told Bloomberg TV on Sunday.” Although I don’t rule out some remnants of the MSCI rebalancing for the next couple of days. This is one of the most attractive investment plays. You are looking at a price to book ratio of 1.1 which is a 50 percent discount to where the stock has traded historically on average.”

It is one of a number of companies in Egypt that offer attractive price-earnings ratios compared to other emerging market peers, according to the broker.

Sandeep also highlighted the value of Egyptian industrial companies such as ElSewedy Electric with a strong backlog of contracts. Its stock is almost 19 percent lower than at the start of the year.

Telecom Egypt also offered significant yields and attractive price-to-earnings ratios, Sandeep said.

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Equities