Today’s Trading Playbook
Mohamed Saad Equity Analyst
KEY THEMES
We saw the market rallying yesterday, amid strong trading activities, with the EGX 30 gaining 1.2%, as blue chips flourished. The performance of the EGX 30 yesterday came defined by a very solid performance by Elsewedy Electric [SWDY], which rose 7.3% yesterday following our core coverage note that we published on 28 December. Similarly, other heavyweight constituents rallied too, especially EFG Hermes Holding [2.6% d/d]. Please read our core coverage note published on 22 December. On the other hand, EGX 70 had its moment too, yet gaining 1.0% on Wednesday.
It’s the last trading session of the eventful 2020! Until yesterday, the EGX30 has shed 3,093.8 points during the year or 22.2%. The year witnessed strong fluctuations. Despite bottoming in March, the market behavior wasn’t short of jittery afterwards.
The below chart depicts the 36 stocks that affected the EGX30 performance during 2020 so far, represented by the number of points each name contributed to the index movement (i.e. 3,093.8s point south so far).
Out of 36 stocks, only 12 had positive influence on the index movement. It wasn’t mysterious to see some telecom or consumer names on the top of list. Interestingly, two of the heaviest laggards were indeed members of Egypt’s standard MSCI EM index (i.e. COMI and EAST), an interesting subtle hint to how foreign capital flight shaped most of the market’s direction and portfolios” pattern in 2020.
Source: Bloomberg.