Corporate earnings in Egypt are expected to “hold up relatively well” in comparison to their MENA peers in 1Q2020, EFG Hermes said in a note yesterday. EFG expects earnings to fall 22% in Egypt and 25% in Qatar, compared to a 41% y-o-y fall in aggregate MENA earnings during the first three months of the year. The investment bank sees UAE corporate earnings taking the biggest hit (-65%) during the quarter. On a q-o-q basis, Egypt’s corporate earnings will fall 18%, according to the note. The culprit: Covid lockdown measures.

Materials and industrial earnings will fall close to zero in 1Q2020, with these two sectors expected to sustain a 100% y-o-y earnings drop. The region’s financial sector will see an aggregate 33% y-o-y dip in earnings, and telecoms earnings will fall 14% y-o-y.

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