BY THE NUMBERS
USD CBE auction (Tuesday, 01 Nov): 8.78 (unchanged since 16 March 2016)
USD parallel market (Tuesday, 01 Nov): 17.50-17.70, Al Mal (from 18.20 on Monday morning, 31 Oct, Al Mal)
EGX30 (Tuesday): 8,447.76 (+0.74%)
Turnover: EGP 690.77 mn (67% above the 90-day average)
EGX 30 year-to-date: +20.57%
THE MARKET ON TUESDAY: EGX30 ended Tuesday’s session 0.7% up. Yesterday’s top gainers included Edita, Qalaa Holdings, and Porto Group. On the flip side, today’s worst performers were Telecom Egypt, Egypt Kuwait Holding, and Elsewedy Electric. At a market turnover of EGP 690.8 mn, local investors were the sole net buyers.
Foreigners: Net short | EGP -47.8 mn
Regional: Net short | EGP -10.7 mn
Domestic: Net long | EGP +58.5 mn
Retail: 58.9% of total trades | 59.1% of buyers | 58.6% of sellers
Institutions: 41.1% of total trades | 40.9% of buyers | 41.4% of sellers
Foreign: 18.5% of total | 15.2% of buyers | 21.7% of sellers
Regional: 7.5% of total | 6.8% of buyers | 8.3% of sellers
Domestic: 74.0% of total | 78.0% of buyers | 70.0% of sellers
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PHAROS VIEW
Buy EFG Hermes GDRs
When CIB’s GDR window was open, high investor demand on local shares to transfer into the GDR as a profit repatriation mechanism lifted local share price and pressured GDR price. While the GDR window was open, it failed to mirror the solid performance witnessed by the local share. Once the GDR window closed, the stock re-rated massively. We believe that the same will happen with EFG Hermes GDR within a month or less, depending on when devaluation would happen and / or restrictions on repatriation of profits ease, or the GDR conversion limit is reached. Tap here for the full note.
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