Today’s Trading Playbook
KEY THEMES
Today’s session marks the end of the first month of 2021. So far, the EGX 30 staged a 6.8% rally in January with one trading session left in the month. Still, it is interesting to notice how the EGX 70 EWI continued to outperform, up 10.2% ytd. It’s also the MPC meeting week, where we anticipate a hold decision by the CBE. For this week, we think two major variables will shape the market’s short-term outlook, namely (1) anticipation of the MPC decision and (2) digestion of the semiannual review of the EGX 30 index. Effective tomorrow, 1 February, five names will be replaced in the EGX 30, as follows:
Out: Beltone Financial Holding [BTFH], Cairo for Investment & Real Estate Development [CIRA], Dice Sport & Casual Wear [DSCW], Egyptian Iron & Steel [IRON], and Juhayna Food Industries [JUFO].
In: Abu Qir Fertilizers [ABUK], AMOC [AMOC], CI Capital Holding [CICH], Fawry [FWRY], and MM group [MTIE].
That said, it is hard to argue that the names exiting the EGX 30 and moving to the EGX 70 EWI should suffer, given that the score in 2021 still favors the latter.