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EGP / USD CBE market average: Buy 18.0674 | Sell 18.3817
EGP / USD at CIB: Buy 17.95 | Sell 18.2
EGP / USD at NBE: Buy 18 | Sell 18.25

EGX30 (Thursday): 12,344.89 (+0.69%)
Turnover: EGP 1.4 bn (243% above the 90-day average)
EGX 30 year-to-date: 0%

THE MARKET ON THURSDAY: The EGX30 ended Thursday up 0.7%. Index heavyweight CIB supported the index, rising 1.9%. The top performing stocks included Domty, up 5.6%, Ezz Steel, up 5.0%, and EFG Hermes, up 3.8%. Thursday’s worst performing stocks included Egyptian Resorts and Amer Group (both of which declined 6.3%) and Elsaeed Contracting, down 4.4%. Market turnover was EGP 1.4 bn and local investors were the sole net sellers. The market was closed yesterday for the New Year’s Day holiday.

Foreigners: Net long | EGP +164.0 mn
Regional: Net long | EGP +110.6 mn
Domestic: Net short | EGP -274.6 mn

Retail: 69.0% of total trades | 65.0% of buyers | 72.9% of sellers
Institutions: 31.0% of total trades | 35.0% of buyers | 27.1% of sellers

Foreign: 10.7% of total | 16.2% of buyers | 5.2% of sellers
Regional: 9.8% of total | 13.5% of buyers | 6.1% of sellers
Domestic: 79.5% of total | 70.3% of buyers | 88.7% of sellers

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PHAROS VIEW

EFG Hermes poised to be the “Lucky Charm” of 2017

With numerous potential IPOs lined up for 2017 and a brokerage market share just over 35% things are looking well for EFG Hermes. Pharos has reiterated its ‘Overweight’ rating on the stock and upgraded its FV to EGP 35.13 from EGP 25.0, as it expects the company’s “operational performance [to] witness a gradual turnaround over the next 2-4 quarters,” to reflect ongoing improvements in the country’s investment climate and market turnover rates following the float. There is great potential for growth, particularly as things begin to look up for investment banking activities in 2017. EFG Hermes’ share price performance has mirrored the EGX30’s turnover rate since 2000, and this new year should also see the company begin to execute plans for new ventures and expand its presence and activities in frontier markets, which justifies the higher upside potential. Tap here to read the full note.

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WTI: USD 53.72 (-0.09%)
Brent: USD 56.82 (-0.05%)
Natural Gas (Nymex, futures prices) USD 3.72 MMBtu, (-2.05%, February 2017 contract)
Gold: USD 1,151.70 / troy ounce (-0.55%)

TASI: 7,238.0 (+0.4%) (YTD: +0.38%)
ADX: Market closed.
DFM: Market closed.
KSE Weighted Index: Market closed.
QE: Market closed.
MSM: 5,744.7 (-0.7%) (YTD: -0.66%)
BB: 1,220.45 (+0.59%) (YTD: 0.00%)