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Thursday, 10 August 2017

The Market Yesterday

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Pharos Holding - http://www.pharosholding.com/

EGP / USD CBE market average: Buy 17.73 | Sell 17.83
EGP / USD at CIB: Buy 17.75 | Sell 17.85
EGP / USD at NBE: Buy 17.75 | Sell 17.85

EGX30 (WEDNESDAY): 13,581 (-0.4%)
Turnover: EGP 689 mn (26% below the 90-day average)
EGX 30 year-to-date: +10%

THE MARKET ON WEDNESDAY: The EGX30 ended yesterday’s session down 0.4%. CIB, the index heaviest constituent closed down 0.8%. EGX30’s top performing constituents were: Abu Dhabi Islamic Bank, up 6.3%; Emaar Misr, up 4.3%; and Amer Group, up 3.1%. Yesterday’s worst performing stocks were: Cairo Oils and Soap down 2.5%; Arab Cotton Ginning down 2.0%; and Eastern Co down 1.2%. The market turnover was EGP 689 mn, and foreign investors were the sole net buyers.

Foreigners: Net Long | EGP +24.7 mn
Regional: Net Short | EGP -13.5 mn
Domestic: Net Short | EGP -11.2 mn

Retail: 78.4% of total trades | 74.2% of buyers | 82.5% of sellers
Institutions: 21.6% of total trades | 25.8% of buyers | 17.5% of sellers

Foreign: 8.0% of total | 9.8% of buyers | 6.2% of sellers
Regional: 9.6% of total | 8.7% of buyers | 10.6% of sellers
Domestic: 82.4% of total | 81.5% of buyers | 83.2% of sellers


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PHAROS VIEW

The Pharos Economic Wellbeing Index stabilized at 25.3 in 2Q2017 compared to 25.1 in the first quarter of this year, but Pharos expects a further decline in 3Q2017. The index stabilized in the second quarter partly due to the deceleration of the core inflation rate to 31.5% y-o-y in 2Q2017 from 32.1% in the first quarter of this year. While Pharos expects real GDP growth and the employment rate to improve gradually going forward, the inflationary reaction to the recent energy product price hike will exert further downside pressure on the index in 3Q2017. But our outlook is for a significant recovery over the medium and long term — and there’s historical precedent, if you cast your eyes back to 1991-92, when the temporary negative repercussions of the economic reform program shortly faded away, leading to a major economic welfare improvement that lasted for seven years. For more (including a discussion of our methodology) tap here (pdf).

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WTI: USD 49.59 (+0.06%)
Brent: USD 52.82 (+1.30%)
Natural Gas (Nymex, futures prices) USD 2.88 MMBtu, (-0.28%, September 2017 contract)
Gold: USD 1,281.30 / troy ounce (+0.16%)

TASI: 7,152.17 (+0.11%) (YTD: -0.79%)
ADX: 4,556.39 (-0.69%) (YTD: +0.22%)
DFM: 3,642.92 (-0.14%) (YTD: +3.17%)
KSE Weighted Index: 417.95 (-0.12%) (YTD: +9.96%)
QE: 9,307.14 (-0.71%) (YTD: -10.82%)
MSM: 4,994.34 (-0.23%) (YTD: -13.63%)
BB: 1,323.54 (-0.02%) (YTD: +8.45%)

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