KEY THEMES
With May 2021 pretty much in the history books, the EGX 30 hasn’t had a single green monthly close except in January. What took place after is a 4-month losing streak between February and May. Yesterday, we provided a closer look on what constituents affected the EGX 30 bearish run during most 2021 (i.e. COMI and ABUK). However, today we took a historical dive to gauge the performance of EGX 30 during number of historical Junes.
Since 2005, the EGX 30 has had a total of 16 June’s (not counting 2021 June yet). During such a period, the index monthly close in June came 37.5% (6 times) in the positive territory, whereas 62.5% (10 times), its monthly close came in red. Moreover, the index average monthly return in June during such period was -2.6%. In 37.5% of the time, when the index scored a positive monthly close, the average monthly return was 3.6%. However, in 62.5% of the time, when the index scored a negative monthly close, the average monthly return was -6.2%.
It appears that, from a historical perspective, June is not the smoothest month for EGX 30. However, after a 4-month losing streak, it’s up to the index to overcome the odds, nullifying a legacy of bad performances during the sixth month of the year.