Egyptian stock alert


Afternoon Alert: Eastern Tobacco keeps sliding: down 5.9% in 3 days 18 October 2017 12:14 EET


Eastern Tobacco (CA:EAST) extended its slide on Wednesday, shedding an additional LE9.02 (or 2.9%) to trade at LE301.0. The shares have fallen LE19.0 (or 5.9%) over the past three trading days vs. the EGX 30 Index which has fallen 1.7% in the same period.

SECTION 1: The past week

Current indications of bearish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Eastern Tobacco in its biggest weekly loss in 8 months October 17, 2017 14:30 EET

Eastern Tobacco (CA:EAST), Egypt's largest Consumer Products company by market cap, has dropped LE14.93 (or 4.6%) in the past week to close at LE310.02. In the past week the shares have dropped 4.6%, the biggest weekly fall since February 28, 2017. Compared with the EGX 30 Index which fell 298.6 points (or 2.2%) in the week, this represented a relative price change of -2.4%. The volume was 0.9 times average trading per week of 350,545 shares. In the past week the market cap has declined LE1.5 billion.

1.2 5-day Recap

Eastern Tobacco underperformed the EGX 30 index in 4 out of 5 days.

DayHeadlineClose price [EGP]Price change %Relative change %Comment
TuesdayEastern Tobacco falls in 4 out of last 5 days310.02-1.6-1.6Steepest Fall
MondayEastern Tobacco underperforms 88% of the market315.0-1.61.2
ThursdayEastern Tobacco falls for a second consecutive day, a two-day fall of 1.5%319.99-0.003-0.6
WednesdayEastern Tobacco falls in 4 out of last 5 days320.0-1.5-1.5VI=3.3


DayHeadlineClose price [EGP]Price change %Relative change %Comment
SundayEastern Tobacco increases320.00.003-0.1Top Rise

SECTION 2: Technical indicators


The price sank 5.9% in the last week.


The stock is at a discount of 11.5% to the 12-month high of LE340.0 on 03 Oct, 2017. It is also at a premium of 201.1% to the 12-month low of LE99.98 on 02 Nov, 2016.

The stock has outperformed 59% of the Egyptian market over the past 6 months.


The positive 6.2 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

In the last three months the stock has hit a new 52-week high twice.

The present value of EGP1,000 invested one year ago is LE3,003 [vs LE1,664 for the EGX 30 Index], including a capital gain of LE1,840 and dividend reinvested of LE164. The total return to shareholders for 1 year is 200.3%.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion1.7In Top 4%
52-week Range (in LE)100.0-340.0
1-month Range (in LE)259.3-340.0
Williams %R-81.3Bullish

SECTION 4: Recent News of Eastern Tobacco

October 17: Today: Eastern Company last cash dividends date

ArabFinance: Eastern Company (EAST) declared cash dividends of LE11.5 per share payable on two installments. The first installment will be LE8, payable on October 22, 2017. The second installment will be LE3.5, payable on January 02, 2018. Shareholders as on October 17, 2017, are entitled to cash dividends distribution.

October 10: 83 bln cigarettes made in FY 2016-17, Eastern Company reports

Cairo: Egypt's Eastern Company for Tobacco (EAST) revealed on Sunday that it has produced a total of 83 billion cigarettes in the 2016-17 fiscal year, compared to 80 billion in the previous fiscal year, Al-Ahram Arabic news website reported.

According to financial report sent by the company to the Egyptian stock market today, its sales in the local market totaled EGP 36.7 billion in 2016-17, compared to EGP 28.5 billion in the previous year.

October 01: Today: Eastern Company's OGM to review FY16/17 result, dividends

ArabFinance: Eastern Company (EAST) declared in a statement sent to EGX, it called the ordinary general assembly to be convened on October 01. The OGM will discuss the financial results for the fiscal year of 2016/2017, as well as the profit distribution suggestion for the same fiscal period.

It is worth to mention, Eastern Company's board suggested profits distribution attributable to shareholders of LE800 million (LE8 per share), versus LE600 million for the fiscal year of 2015/2016.

October 01: Eastern Company's OGM okays dividends amendment

ArabFinance: Eastern Company (EAST) declared in a statement sent to EGX, ordinary general assembly was convened on October 01.

The OGM approved the financial results for the fiscal year of 2016/2017 after retrieval LE1.550 billion for more studying to the restructuring plan that has been set to restructure the company productivity.

September 13: Misr Insurance renews Eastern Company's policy for LE32.8 bln

Cairo: Misr Insurance Co. has renewed insurance policy of Eastern Company (EAST), a major tobacco operator in Egypt, in a deal worth EGP 32.8bn. The insurance contract provides coverage for the company's assets and vehicle fleet.

A senior official at Misr Insurance said that the policy covers risks associated with fire, robbery, explosives and detonators as well as risks relating to machinery breakdown and revenue losses.

Eastern Tobacco (CA:EAST; CAI:EAST; EY:EAST)

ISIN: EGS37091C013

PermID: 4295866238