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Tuesday, 31 March 2020

The Market Yesterday

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

EGP / USD CBE market average: Buy 15.68 | Sell 15.81
EGP / USD at CIB: Buy 15.70 | Sell 15.80
EGP / USD at NBE: Buy 15.68 | Sell 15.78

EGX30 (Monday): 9,521 (-2.5%)
Turnover: EGP 540 mn (9% below the 90-day average)
EGX 30 year-to-date: -31.8%

THE MARKET ON MONDAY: The EGX30 ended Monday’s session down 2.5%. CIB, the index’s heaviest constituent, ended down 3.1%. EGX30’s top performing constituents were Ibnsina Pharma up 0.9%, and Kima up 0.3%. Yesterday’s worst performing stocks were Credit Agricole down 7.6%, TMG Holding down 5.1% and Orascom Construction down 4.2%. The market turnover was EGP 540 mn, and local investors were the sole net buyers.

Foreigners: Net short | EGP-194.4 mn
Regional: Net short | EGP -12.4 mn
Domestic: Net long | EGP +206.8 mn

Retail: 43.6% of total trades | 46.4% of buyers | 40.7% of sellers
Institutions: 56.4% of total trades | 53.6% of buyers | 59.3% of sellers


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PHAROS VIEW

Pharos is out with a series of notes looking at how the industrial, real estate and food and beverage sectors are faring in the covid-19 economy:

The industrial sector will not feel the full effects of covid-19 until 2Q as most firms are still completing previous orders, writes the firm’s Mark Adeeb (pdf). Although none are yet able to predict the scale of the damage, companies will be hit by falling demand for non-essential products and slowing construction activity. Industrial companies will likely take on new loans and burn through cash as working capital requirements rise. “Commodity-driven, export-oriented, highly-leveraged firms will bear the brunt of the current circumstances,” he wrote.

Real estate companies have begun to see a slowdown in sales and are facing drawn-out construction timetables due to the falling numbers of workers onsite, Mayar El Ashry writes (pdf). On the plus side, companies haven’t encountered any major problems accessing raw materials and are getting most of their inputs from local sources.

It’s a mixed picture in the food and beverage sector as supermarkets face intense demand from consumers eager to stockpile goods and sales to hotels and restaurants fall off a cliff. “This trend is not sustainable in the long term and is expected to slow down as supermarkets ration stock items and consumer storage space is strained,” equity analyst Diyar Hozaien writes (pdf). “Ramadan season historically lends to slower purchasing patterns across most FMCG segments.” Companies in the sector are also working to acquire 2-4 months of inventory to protect themselves against EGP depreciation and possible shortages of raw materials.

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WTI: USD 20.21 (-6.04%)
Brent: USD 22.65 (-9.15%)

Natural Gas (Nymex, futures prices) USD 1.70 MMBtu, (-4.14%, May 2020 contract)
Gold: USD 1,641.30 / troy ounce (-0.77%)

TASI: 6,373 (-0.05%) (YTD: -24.03%)
ADX: 3,744 (-3.47%) (YTD: -26.24%)
DFM: 1,789 (-2.33%) (YTD: -35.27%)
KSE Premier Market: 5,116 (+0.29%)
QE: 8,282 (-1.76%) (YTD: -20.55%)
MSM: 3,467 (-0.36%) (YTD: -12.91%)
BB: 1,355 (-0.51%) (YTD: -15.82%)

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. © 2020 Enterprise Ventures LLC.