KEY THEMES
Last week, the EGX 30 ended down 2.5%. This coincided with global equities, particularly the U.S., flirting with all-time highs. The EGX 70, on the other hand, closed the week up 1.6%. We still think that the remainder of the year will see the return of foreign investors, albeit partially, which should bode well for large caps after a strong run for small caps ytd.
Here’s an interesting stat: Since February 2019, the EGX 30 failed to achieve a 2-month winning streak. Now with the index ending August up 7.23%, it’s important for September’s performance to be positive to break such record. This would be key—we think—for good performance through the end of 2020.