Achieved The Egyptian Stock Exchange Average performance in 2019 compared to neighboring markets, as the main index achieved a rise of 31% denominated in dollars to rank second after Ireland as the highest indicator up, according to the Morgan Stanley Emerging Markets Index, amid a large weakness in trading volumes, and publishes the “seventh day” expectations of investment banks to perform The Egyptian Stock Exchange, and the winning sectors in the new year.
Initially, Pharos Investment Bank suggested that the Egyptian Stock Exchange headed towards 16000 points levels next year, an increase of 20%, with the support of several incentives, including inflation declines and more expected rate cuts and a series of successful proposals and the trend of the US federal towards more expansionary monetary policy.
The Beltone investment bank agreed with him, which recommended buying in the Egyptian capital market as a result of the macroeconomic recovery and continued monetary easing, justifying this by expectations of lowering interest rates, a better view of the macroeconomic and support to the industrial sector and improved growth with a strong potential rise in stocks in the event of improved liquidity levels, noting The government offer program is a catalyst for the market in 2020 because it boosts liquidity.
The same thing is for the investment bank Hermes, which recommended increasing the relative weight of the Egyptian Stock Exchange during 2020, due to that, but the stock prices are close to the levels before 2016, and the return on shares is proceeding through the path of growth, indicating that he does not see a reason why the Egyptian Stock Exchange is trading at a discount 25% compared to the emerging markets and the Gulf.
As for the sectors that are expected to rise, Beltone recommended continuing to recommend a selective approach to investing in the Egyptian Stock Exchange, and chose 18 stocks as the best shares for investment with a potential average increase at 56%, and an expected growth in profitability of 15%, i.e. an increase from the average shares in the Middle East and North Africa at 6 %.
Beltone identified a list of 18 stocks out of 62 shares covered in the region as a candidate for boarding, namely Domty, Eastern Tobacco, MM Group, Edita, Cairo Investment and Real Estate Development, EIPICO, Ibn Sina Pharma, Egyptian Kuwaiti Holding, Elsewedy Electric, Sodic, Orascom Development, Export Development Bank, CI Capital Holding and Commercial International Bank.
As for the Pharos investment bank, it recommended purchasing in the consumer, healthcare and pharmaceutical sectors, and identified a number of shares, including Dumty, Edita and Transland shares in the food sector with targeted prices 10, 20 and 7.25 pounds compared to the closing levels of 9, 14 and 5.30 respectively, and Alexandria Pharmaceutical Industries and Cleopatra Hospital in the sector Healthcare with a target value of 129.8 and 7.33 pounds, compared to 100 and 5.33 closing price, respectively.
Hermes chose, the Commercial International Bank shares, at a price of 94.9 pounds per share, and Elsewedy Electric at a target price of 20 pounds. And Eastern smoke at 22.5 pounds, Egyptian Kuwaiti Holding at 2 dollars, Juhayna Food Industries at 13.5 pounds.