The recent rally that we recently witnessed in the EGX 30 index (up c.18% since 12 October through yesterday’s high) raises the question as to what to do now, at least by year-end. Given the performance divergence of all index constituents, we find it more insightful to set the index’s near-term target based on the expected performance of each constituent. For this, we took a closer look at the top 10 constituents, with a cumulative weight of 73%. Based on our near-term target for each constituent, we think the EGX 30 is poised to slip by 2.4% to a level just shy of 11,000 (please see table below). You may also refer to our EGX 30 index analysis on Page 2. Also in the note, we highlight our view on a selected group of EGX 30 constituents.
Mohamed Khedr CFTe, MFTA
Senior Technical Analyst
T +202 3300 5721