In Today’s Story, we look at Egypt equities through the benchmark EGX 30 index to explore how cheap they currently are relative to global and MENA markets and also to their own historical averages.
We note that Egypt equities have recently been undermined by (1) a slower pace of further interest rate cuts by the CBE, (2) stronger EGP vis-à-vis USD, (3) money migration from existing emerging markets globally and locally to Saudi Arabia and Argentine which were recently upgraded to emerging markets status by global index provider MSCI and index compiler FTSE, and (4) a waves of margin calls.
The heat on local equities, however, opens the door for global or regional investors who are looking to buy the dips.
For more details, please read the full report below.