The Market Yesterday
EGP / USD CBE market average: Buy 17.86 | Sell 17.9556+EGP / USD at CIB: Buy 17.86 | Sell 17.96
EGP / USD at NBE: Buy 17.78 | Sell 17.88
EGX30 (Monday): 13,678 (+0.8%)
Turnover: EGP 1.7 bn (130% above the 90-day average)
EGX 30 year-to-date: -8.9%
THE MARKET ON MONDAY: The EGX30 ended Monday’s session up 0.8%. CIB, the index heaviest constituent ended up 0.7%. EGX30’s top performing constituents were Global Telecom up 3.5%, and Juhayna up 3.2%, and Elsewedy Electric up 3.2%. Yesterday’s worst performing stocks were Qalaa Holdings down 1.6%, TMG Holding down 1.2% and Ibnsina Pharma down 0.8%. The market turnover was EGP 1.7 bn, and regional investors were the sole net sellers.
Foreigners: Net Long | EGP +22.3 mn
Regional: Net Short | EGP -125.6 mn
Domestic: Net Long | EGP +103.2 mn
Retail: 51.2% of total trades | 35.0% of buyers | 67.5% of sellers
Institutions: 48.8% of total trades | 65.0% of buyers | 32.5% of sellers
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PHAROS VIEW
Pharos View — Domestic inflation dynamics and EM monetary tightening support maintaining rates: Pharos Holdings sees domestic inflation rate dynamics and EM monetary conditions support maintaining rates in the upcoming MPC meeting on 15 November. The high yields in other EMs are putting more pressure on Egypt to maintain policy rates. Egypt after-tax yield is 15.78%, which is still competitive among other emerging market yields due to Egypt’s moderate risk levels, as reflected by the CDS rates. This comes as foreign ownership of domestic short term debt has declined 7.8% m-o-m at the end of September 2018 to be USD 13.1 bn, down from USD 14.2 bnin August 2018. On the inflation front, we expect the monthly inflation rate to decelerate, specifically to 1.5% in November 2018 and 1% in December 2018. This is mainly driven by vegetables price normalization when the new harvest season starts. We expect inflation to decelerate again to be 17.1% y-o-y in 3Q2018-19. You can view the full report here (pdf).
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WTI: USD 58.98 (-1.59%)
Brent: USD 70.12 (-0.09%)
Natural Gas (Nymex, futures prices) USD 3.93 MMBtu, (+3.83%, December 2018 contract)
Gold: USD 1,201.7 / troy ounce (-0.15%)
TASI: 7,774.99 (+0.83%) (YTD: +7.59%)
ADX: 4,954.23 (-0.96%) (YTD: +12.64%)
DFM: 2,802.88 (-0.53%) (YTD: -16.83%)
KSE Premier Market: 5,289.97 (-0.2%)
QE: 10,415.00 (+0.24%) (YTD: +22.19%)
MSM: 4,479.62 (-0.53%) (YTD: -12.15%)
BB: 1,308.36 (-0.32%) (YTD: -1.75%)