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Wednesday, 23 August 2017

The Market Yesterday

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

EGP / USD CBE market average: Buy 17.7065 | Sell 17.8065
EGP / USD at CIB: Buy 17.71 | Sell 17.81
EGP / USD at NBE: Buy 17.72 | Sell 17.82

EGX30 (Tuesday): 13,115 (+0.1%)
Turnover: EGP 361 mn (60% below the 90-day average)
EGX 30 year-to-date: +6.2%

THE MARKET ON TUESDAY: The EGX30 ended Tuesday’s session up 0.1%. CIB, the index heaviest constituent ended up 0.3%. EGX30’s top performing constituents were: Domty up 4.0%, Qalaa Holdings up 2.7%, and Porto Group up 2.6%. Yesterday’s worst performing stocks were: Cairo Oils and Soap down 1.4%, Elsewedy Electric down 1.2%, and Global Telecom down 1.1%. The market turnover was EGP 361 mn, and local investors were the sole net sellers.

Foreigners: Net Long | EGP +0.1 mn
Regional: Net Long | EGP +3.8 mn
Domestic: Net Short | EGP -3.9 mn

Retail: 76.8% of total trades | 73.2% of buyers | 80.4% of sellers
Institutions: 23.2% of total trades | 26.8% of buyers | 19.6% of sellers

Foreign: 13.7% of total | 13.7% of buyers | 13.7% of sellers
Regional: 6.7% of total | 7.2% of buyers | 6.2% of sellers
Domestic: 79.6% of total | 79.1% of buyers | 80.1% of sellers


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PHAROS VIEW

Financial Conditions Index — An Apparent Monetary Tightening After Two Rounds of Interest Rate Hike: The Pharos Financial Conditions Index (FCI) rose significantly following two consecutive interest rate hikes on May and July, suggesting economic activity growth would slow down in 3Q2017. The real M2 annual growth reflected further tightened monetary conditions, partly due to the impact of the inflationary reaction to higher fuel and electricity prices in July, while EGX continued to move within a flat range in July. The overnight interbank spread rose from 0.4% in June to 0.8% in July. Furthermore, the EGP nominal exchange rate appreciated by 1.5% to EGP 17.9 per USD 1. However, we expect the real GDP growth to reach 4.5% in FY2017-18 on a narrower trade deficit and a higher foreign investment. You can view the full report here (pdf).

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WTI: USD 47.70 (-0.27%)
Brent: USD 51.87 (+0.41%)
Natural Gas (Nymex, futures prices) USD 2.93 MMBtu, (-0.17%, September 2017 contract)
Gold: USD 1,288.80 / troy ounce (-0.17%)TASI: 7,253.52 (+0.39%) (YTD: +0.60%)
ADX: 4,474.70 (-0.46%) (YTD: -1.59%)
DFM: 3,611.22 (+0.45%) (YTD: +2.28%)
KSE Weighted Index: 429.03 (+0.28%) (YTD: +12.88%)
QE: 9,065.34 (0.00%) (YTD: -13.14%)
MSM: 4,972.30 (+0.58%) (YTD: -14.01%)
BB: 1,307.65 (-0.16%) (YTD: +7.15%)

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