Egyptian equities bounced back down to a record low in July after a June breather that followed the bloodiest month this year so far: May. Global Telecom Holding’s (GTHE) minority investors are currently on selling mode in response to the mandatory tender offer (MTO) by VEON Ltd. (NASDAQ: VEON). So far, above 60% of their shares is already offered in the MTO. Added to margin calls, CCAP’s negative performance late July – due to the unclear situation of its subsidiary Egyptian Refinery Co. (ERC) – threw a shadow over the market which couldn’t find comfort in GTHE’s positive performance ahead of the MTO. The market in July was hammered down by foreigners who turned heavy net sellers. Egyptians, took buying into their own hands, intensifying their net purchases, while Arabs were almost fleeing the market on a ytd basis. Egypt is still the third cheapest market, trading at discount to MSCI EM and MSCI FM. Below, we analyze the market performance during July.
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