It’s almost a week since the Holy month of Ramadan started, and the market seems to be slow on price action, activity, and even news! Since Ramadan started (only four trading sessions so far), EGX 30 is almost unchanged, down marginally or 0.9%. On the other hand, EGX 70 EWI is down 5.3%, leaving the former outperforming the latter so far in 2021 by 8.55 percentage points. In terms of activity, the market averaged so far more than EGP800mn in daily traded values. Yet, yesterday marked the lowest of all four trading sessions, down by around 50% versus the average daily traded value in the first three trading sessions in Ramadan. As for news, it seems to be a slow start for the second quarter as investors await first-quarter results from EGX-listed stocks to help them set the tone for this year’s earnings visibility. For now, it seems that Ramadan doldrums will continue, save for some price action related to MSCI EM rebalancing, which again we think would be a good opportunity to play the mispricing game.
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