EGX 30 Closes Above 4700 Pts ‘Psychologically-important’ Mark: Pharos

In its daily commentary on the performance of the Egyptian Exchange (EGX), Pharos Research said that Monday’s session lacked a clear catalyst amidst a backdrop of mixed results from global markets. Consequently, the market was neither dominated by buying or selling powers as the advance-to-decline ratio came in nearly at par.

EGX30 closed 0.5% higher above the psychologically-important support mark of 4,700. The broader index followed similar dynamics, but sagged 0.1%. Today’s decline was ascribed to the ruling of the Supreme Administrative Court, to be issued tomorrow on the legality of the constitutional drafting committee. Accordingly, investors indecisiveness continued and foreign investors’ continued exit from local equities.

Banks outperformed today, as Commercial International Bank- Egypt (CIB) (COMI:CA) and National Societe Generale Bank (NSGB) (NSGB:CA) advanced 1.4% and 1.9% consecutively. EFG-Hermes (HRHO:CA) gained 1.3%. Al Baraka Bank Egypt (SAUD:CA) and Credit Agricole-Egypt (CIEB:CA) closed in the green. Amer Group (AMER:CA) received the greatest buy-appetite compared to its tier-1 real estate developer peers and jumped 1.5%.

It is worth highlighting that Talaat Moustafa Group (TMG) (TMGH:CA) bucked its six-session downward trend and managed to end the session in the black, yet still underperformed the benchmark. Ex-Egypt and commodity bets, excluding OCI, continued to outperform as AMOC, EK Holding (EKHO:CA), and Orascom Telecom Holding (OTH) (ORTE:CA) ended ahead of the benchmark.

Conversely, Oracom Construction Industries (OCI) (OCIC:CA) shut 0.3% lower. Citadel Capital (CCAP:CA) and Pioneers Holding (PIOH:CA) bucked their peer’s movement and retreated 0.4% and 0.8%, respectively. Palm Hills Development (PHDC:CA) and the Six of October Development and Investment Company (SODIC.CA) were amongst the session’s poorest performers, as they both shed 2.1% of their share price, the report issuer concluded.