Today’s Trading Playbook
KEY THEMES
Yesterday, the EGX 30 slipped in a devastating fashion, shedding about 265 points, hitting its worst levels since last October 2020. While the vicious sell-off felt genuine, foreign investors were the most intense sellers. The stiff slippage will likely bring a series of margin calls among retail investors, if not already. Whatever the reason behind these loud declines, there’s no global market drama this time. Also, after one year with COVID-19, there’s not much left for the market to learn from the pandemic effect on business activities.
A look at the EGX 30 in USD terms shows the index at its lowest levels since exactly last November 2020. It’s worth noting that the index is c. 20% up from its most famous low recorded right after the EGP flotation, and about the same distance from the bottom seen in March 2020, when the index first learned about the pandemic. This means that, hypothetically speaking, if the EGP to weaken by about 20%, the index is as attractive as November 2016. Also the index is 29% up from the intraday bottom recorded in 19 March 2020.
Now, on to the top news and analysis for the day.