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Sunday, 12 January 2020

The Market Yesterday

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

EGP / USD CBE market average: Buy 15.93 | Sell 16.03
EGP / USD at CIB: Buy 15.93 | Sell 16.03
EGP / USD at NBE: Buy 15.95 | Sell 16.05

EGX30 (Thursday): 13,730 (+1.4%)
Turnover: EGP 747 mn (10% above the 90-day average)
EGX 30 year-to-date: -1.7%

THE MARKET ON THURSDAY: The EGX30 ended Thursday’s session up 1.4%. CIB, the index’s heaviest constituent, ended up 0.8%. EGX30’s top performing constituents were Egyptian Iron & Steel up 6.6%, Egyptian Resorts up 5.5%, and Madinet Nasr Housing up 4.8%. Thursday’s worst performing stock was Cleopatra Hospital down 0.3%. The market turnover was EGP 747 mn, and local investors were the sole net buyers.

Foreigners: Net short | EGP -71.1 mn
Regional: Net short | EGP -74.8 mn
Domestic: Net long | EGP +146.0 mn

Retail: 41.5% of total trades | 39.3% of buyers | 43.7% of sellers
Institutions: 58.5% of total trades | 60.7% of buyers | 56.3% of sellers


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PHAROS VIEW

Inflation uptick rules out rate cut: Inflation in December was higher than anticipated, rising to 6.8% y-o-y for total Egypt (urban and rural), bringing the overall average for 2019 to 8.8%, which is slightly lower than a projected 9.0%. With the uptick in inflation rates, Pharos expects the Central Bank of Egypt’s Monetary Policy Committee to keep rates on hold when it meets this week “in order to assess the impact of the previous rate cuts, and in light of geopolitical unrest in the region.” Pharos expects a “less aggressive” easing cycle to resume throughout the rest of the year, with a total of 200-300 bps in rate cuts delivered throughout 2020. Tap or click here for the full report (pdf).

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WTI: USD 59.04 (-0.9%)
Brent: USD 64.98 (-0.6%)

Natural Gas (Nymex, futures prices) USD 2.20 MMBtu, (+1.7%, February 2020 contract)
Gold: USD 1,560.10 / troy ounce (+0.4%)

TASI: 8,345 (+2.7%) (YTD: -0.5%)
ADX: 5,075 (+1.1%) (YTD: +0.0%)
DFM: 2,749 (+1.3%) (YTD: -0.6%)
KSE Premier Market: 6,929 (+1.9%)
QE: 10,444 (+1.0%) (YTD: +0.2%)
MSM: 3,977 (+0.8%) (YTD: -0.1%)
BB: 1,597 (+0.8%) (YTD: -0.8%)

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