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EGP / USD CBE market average: Buy 16.0038 | Sell 16.1062
EGP / USD at CIB: Buy 15.9 | Sell 16
EGP / USD at NBE: Buy 16 | Sell 16.05

EGX30 (Thursday): 12,651.97 (+1.64%)
Turnover: EGP 1.013 bn (133% above the 90-day average)
EGX 30 year-to-date: +2.487%

THE MARKET ON THURSDAY: The EGX30 ended Thursday’s session up 1.6%. The top performing constituents were Arab Cotton Ginning, Global Telecom, and TMG Holding. Thursday’s worst performing stocks included Juhayna, GB Auto, and Elsewedy Electric. The market turnover was EGP 1.0 bn and regional investors were the sole net buyers.

Foreigners: Net short | EGP -30.8 mn
Regional: Net long | EGP +58.1 mn
Domestic: Net short | EGP -27.3 mn

Retail: 57.2% of total trades | 54.1% of buyers | 60.2% of sellers
Institutions: 42.8% of total trades | 45.9% of buyers | 39.8% of sellers

Foreign: 28.8% of total | 27.3% of buyers | 30.3% of sellers
Regional: 7.4% of total | 10.3% of buyers | 4.6% of sellers
Domestic: 63.8% of total | 62.4% of buyers | 65.1% of sellers

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PHAROS VIEW

The EGP is on a roller-coaster, but is it sustainable?

The EGP’s current rally is attributable to a combination of internal and external factors. On a global scale, the initial rallying of the USD following US President Donald Trump’s election has since been reversed on the back of his inauguration and executive order on immigration. Internally, commercial banks’ foreign currency liquidity has witnessed a marked improvement since the EGP float in November, which, coupled with weaker local demand, contributed to halting the EGP depreciation. Despite certain factors that are expected to add downward pressure to the EGP over the short term, such as the Ramadan season, which typically witnesses higher import and consumption levels than the rest of the year, the disbursal of the second tranche of the IMF loan in the spring and the sustainability of the current high foreign demand of local treasuries should add upward pressure to the local currency. We maintain our position that the EGP will strengthen over the next couple of years. Tap here to read the full note.

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WTI: USD 53.40 (+0.07%)
Brent: USD 55.81 (+0.29%)
Natural Gas (Nymex, futures prices) USD 2.83 MMBtu, (-0.70%, March 2017 contract)
Gold: USD 1,239.10 / troy ounce (-0.20%)

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