Today’s Trading Playbook
KEY THEMES
Here are some interesting stats, during the 52 weeks of 2020, the EGX 30 ended 26 weeks shedding losses, and 26 weeks were green. However, the index weekly return averaged -2.9% for the weeks ended in red, and about 2.1% for the green ones. In return, this has resulted in a
-22.3% overall annual performance in 2020.
What’s interesting is, after a bloody losing streak between 9 February and 15 March, which lasted for six weeks, the index only retaliated with an equal 6-week winning streak between 19 July and 30 August. Yet afterwards, the EGX 30 failed to accumulate green weeks above two. Going into 2021, it’s highly likely that “two” could remain the maximum we could get for a bit longer, unless blue chips see a “momentum switch”.
Elsewhere, US equities fell notably yesterday, after touching an all-time peak during intraday trading. The retreat was the product of a ramp-up in COVID-19 cases during this second wave. Should this persist; other potential spillovers to emerging market are highly probable.