KEY THEMES
The performance of the EGX 30 in 2021 comes defined by its violent ride that kicked off since last March. The notable downward movement, which lasted for about six weeks, has sent the index down to its worst levels since June 2020. The market finally showed a bounce back attitude last Thursday, gaining some 75.8 points or 0.74%. However, given the magnitude of the recent descend; stocks will need to show stronger momentum, to bandage their ytd losses.
Taking a simple look on market valuation, we opted to look at P/E on a single constituent basis.
Out of the 31 stocks currently forming the index, only 24 names have P/E data. Out of the aforementioned 24 sample, only eight stocks witnessed their P/E expanding between 31 December 2020 and 8 April 2021. Meanwhile, all of the remaining 16 index members have seen their P/E contract, with nine stocks contracting more than 5% on a ytd basis, including Egypt’s standard MSCI index composites (i.e. COMI, EAST, and SWDY).