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Tuesday, 11 December 2018

The Market Yesterday

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Pharos Holding -

EGP / USD CBE market average: Buy 17.86 | Sell 17.95
Buy 17.86 | Sell 17.96
EGP / USD at NBE: Buy 17.78 | Sell 17.88

EGX30 (Monday): 12,476 (+2.8%)
Turnover: EGP 742 mn (6% below the 90-day average)
EGX 30 year-to-date: -16.9%

THE MARKET ON MONDAY: The EGX30 ended Monday’s session up 2.8%. CIB, the index heaviest constituent ended up 3.2%. EGX30’s top performing constituents were Elsewedy Electric up 5.5%, and Pioneers Holding up 5.3%, and Heliopolis Housing up 5.1%. Yesterday’s worst performing stocks were Ibnsina Pharma down 1.6%. The market turnover was EGP 742 mn, and regional investors were the sole net sellers.

Foreigners: Net Long | EGP +46.5 mn
Regional: Net Short | EGP -98.1 mn
Domestic: Net Long | EGP +51.7 mn

Retail: 43.1% of total trades | 41.5% of buyers | 44.7% of sellers
Institutions: 56.9% of total trades | 58.5% of buyers | 55.3% of sellers


Pharos View — Domestic inflation dynamics and EM conditions dictate rate stability: Pharos Holdings sees domestic inflation dynamics and high yields in emerging markets support keeping interest rates where they are in the CBE’s upcoming MPC meeting on 27 December. Egypt’s after-tax yield is 15.96%, which is still competitive among yields in other EMs — such as Turkey, Argentina, and Nigeria — 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 17% m-o-m at the end of October 2018 to USD 11.8 bn, down from USD 13.1 bn in September 2018. On the inflation front, Pharos expects the monthly inflation rate to accelerate 0.5% in December 2018. This acceleration will mainly be driven by the change in the customs exchange rate. Inflation is expected to accelerate further in 2Q2018-19 to 16.5%, before tapering off to reach 16.4% and 16.1% in 3Q2018-19 and 4Q2018-19, respectively. You can view the full report here (pdf).


WTI: USD 50.96 (-0.08%)
Brent: USD 59.97 (-2.76%)

Natural Gas (Nymex, futures prices) USD 4.51 MMBtu, (-0.68%, January 2019 contract)
Gold: USD 1,249.60 / troy ounce (+0.02%)

TASI: 7,819.67 (-0.25%) (YTD: +8.21%)
ADX: 4,789.30 (-0.97%) (YTD: +8.89%)
DFM: 2,449.93 (-1.98%) (YTD: -25.82%)
KSE Premier Market: 5,401.75 (-0.74%)
QE: 10,555.81 (-0.46%) (YTD: +23.85%)
MSM: 4,503.49 (-0.97%) (YTD: -11.68%)
BB: 1,317.81 (+0.03%) (YTD: -1.04%)

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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