Today’s Trading Playbook
Amr Hussein Elalfy CFA | Head of Research
KEY THEMES
Last week, we alluded to the ”high hopes” that investors have for the New Year in terms of market performance. This represents the demand side of the market, whether coming from individual, high net worth, institutional, or foreign investors. However, it takes two to tango for the market to be balanced. More recently, those high hopes—it seems—have started to reverberate throughout the rest of the market, namely the supply side. While we need investor diversity on one hand, we also need investment diversity. More companies now, including a handful of military-owned companies, are lining up to tap the EGX. We hope that those “great expectations” building up for the New Year do not evaporate the same way the government’s public offerings program has when market conditions turned sour. For now, we do not see any reasons not to be optimistic.