KEY THEMES
So here we go again, back from a long vacation, with only five trading sessions left to go in July 2021. Let’s touch base quickly regarding some basic trading statistics in 2021 so far. The year-to-date performance for EGX 30 and EGX 70 EWI still points to an obvious divergence, with the former down some 1.8%, and the latter up a whopping 17%. From a month-to-date perspective, the EGX 30 is up c.0.8%, where the EGX70 EWI is up a massive 8%. July, historically, is a good month for the EGX 30, with the index average return in July is at 3.2% since 2005. The EGX 30 still provides us with a current earning yield of 9.6% (i.e. P/E of 10.38x), where the index forward 2021 P/E is at 8.73x (i.e. earnings yield of 11.5%). We believe the end to the aforementioned performance divergence is tied with the return back of a certain investor’s type, with different investment mandate, as well as different risk tolerance profile.