KEY THEMES
It’s been 46 weeks so far into 2020, and EGX 30 is down more than 21% ytd. Those 46 weeks have so been split evenly between positive and negative. The index’s weekly return averaged 3.2% in the weeks that ended in red and only 2.3% in those that ended in green. The worst losing streak in 2020 was in February/March, coinciding with the COVID-19 crisis, when the index fell for six consecutive weeks, shedding almost 35% off its value. On the other hand, the index saw six consecutive weeks of gains during mid-July/August, registering a cumulative performance of only 10%. Since then, the index failed to rack up more than two consecutive green weeks. Last week, EGX 30 was up slightly by 0.8%. With only five weeks left until yearend, the index will not be able to break that six-week winning streak.
While some large caps have started moving higher, CIB [COMI] continues to dampen the index’s performance as the market awaits its delayed Q3 2020 results. Speaking of which, Elsewedy Electric [SWDY] just reported its Q3 2020 results which showed better margins q/q on higher revenues, which led to a 59% surge in net earnings.