MubasherTrade’s research unit maintained its ‘Overweight’ rating for Egypt, on the back of the Egyptian Exchange’s (EGX) recent remarkable performance.

At the sectorial level, Mubasher recommended raising the weighted average for the stocks of the sectors of health, financial services and real estate, and cutting the weighted average for the stocks of energy, mining and telecommunications.

As for listed companies’ performance, Egyptian companies reported good Q4 2014 results, where the Beat-Miss Index (BMi) – which tallies companies’ reported results versus consensus estimates – for revenues surged in Q4-14, recording 76.9 (+54% q-o-q, +11% y-o-y), while earnings BMi reached 66.7 (+73% q-o-q, +21% y-o-y).

On the trading floor, the benchmark index EGX 30 is trading at a trailing 12-month PER of 16.4x and 1.6x forward PBV, above their five-year averages of 13.2x and 1.1x (+40% and +14% vs. MSCI EM index), respectively.

Forward dividend yield is 2.6%, below a five-year average of 4.5%. Forward return on equity (ROE) is 9.8%, above a five-year average of 8.4%.

MubasherTrade’s favorite list included the stocks of: Eastern Co., Commercial International Bank, Credit Agricole Egypt, Qalaa Holdings,Housing & Development Bank, Pioneers Holding, Export Development Bank, Egyptian Financial Group-Hermes, Abu Dhabi Islamic Bank, Elswedy Electric, Misr Cement, Heliopolis for Housing, Six of October Development, Amer Group Holding, Medinet Nasr Housing, Palm Hills Developments,Talaat Moustafa Group,Telecom Egypt and Oascom Telecom Media & Technology.