KEY THEMES
Old habits die hard when it comes to the EGX 30 which ended June slipping 0.51%, having dropped as much as 5.25% by mid-month. We mentioned here before in our Trading Playbook dated 2 June 2021 how historically June has been a bad month for the EGX 30 in general. We had mentioned that since 2005, the index's monthly close in June was 37.5% of the time (i.e. 6 times) positive and 62.5% of the time (i.e. 10 times) negative. We note that both Fawry [FWRY] and CIB [COMI] are the top two names that pulled the index down heavily during the month. Combined, both names excreted pressure equal to 152 points in the negative direction, with the index netting down 52 points.
What seems very interesting is how July has been the exact opposite of June when it comes to EGX 30 performance. Since 2005, the EGX 30 has had a total of 16 July readings (not counting July 2021 yet). Historically, the index's monthly performance averaged +3.2% in July over that period where it was 37.5% of the time (i.e. 6 times) negative (averaging -4.3%) and 62.5% of the time (i.e. 10 times) positive (averaging +7.6%).