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If you do not want to lose in the stock market … defensive stocks are the ideal solution

The Egyptian economy, and then the Egyptian financial market, is currently going through a compelling crisis that ravages it like all the economies of the world and no economy or financial market has been able to face what has been ravaged, and therefore many countries have taken incentive measures for their economy, including what was taken in Egypt to direct the Central Bank of Egypt 20 billion A pound to the stock market, according to the directives of the President Abdel Fattah El-Sisi, but the small investor who currently has an investment portfolio in which he manages his few savings fears that the crisis will hit it, especially since at the present time the interest of bank deposits and certificates has decreased by 3%, so he has to manage Wallet except Tosmarah in the financial market is to bring him over the return of the bank’s return as well as to keep the savings from the dangers of force majeure, inflation and declining revenues .

Therefore, that investor must go directly to quickly restructuring his investment portfolio and adding a number of sectors to it in what are called the defense sectors, especially since currently there are no real expectations for the end of the crisis, and the defense sectors are the ones that include shares that provide dividends in a stable and stable manner over the course of The longevity of the investment portfolio regardless of the state of the financial market, because it operates in stable economic activities away from the upward and downward economic cycles, that is, the demand for its products is stable throughout the year and the performance of those stocks tends to be stable in periods of market decline and in doubtful performance Do not outperform the market during downturns.

In light of the current crisis facing the Egyptian Stock Exchange, and it negatively affected a number of sectors directly, such as tourism, financial services, industry and energy, and it is expected to have a direct impact on the shape of its financial centers at the end of the year due to their direct association with the crisis, but there are sectors that will affect it Indirectly, you may be able at the present time to rearrange its papers to avoid such crises, such as building materials, construction and logistic services, and there are sectors that will have a slight impact on the crisis, such as food, health care, real estate, chemicals and communications..

The food sectors on the Egyptian Stock Exchange are expected to achieve good financial performance during 2019 for two important reasons. We are on the threshold of the holy month of Ramadan, which means more consumption in addition to the embargo in the sides of the country, during which citizens tend to store more food stocks for them, which means more Consumption, therefore, the performance of dairy, bakery and mills companies will be stable. There are also chemical companies that produce disinfectants such as Egypt for chemicals that face pressure in demand for one of their main products chlorine for sterilization purposes for the next period. If they can face that great demand, it is expected that HD good performance in the coming period, its financial position .

There is another sector, which is health care and medicines, and in light of that period it is believed that the sector will be very attractive in light of the stability of the sector’s profitability in addition to stable distributions to it over the previous years, and other sectors such as the telecommunications sector under the curfew will be the demand for the Internet is very strong, provided To meet that demand appropriately in terms of infrastructure.

Finally, the real estate sector is expected to perform well, especially with interest rates declining lately. The trend will be an increase in demand for real estate to achieve better returns than saving vessels. Hence, the demand for real estate sector shares may witness some recovery, such as Talaat Mostafa and Palm’s shares. Hills and Sodic, as for the shares of banks, the effect on their performance in the coming period is unclear whether in terms of their ability to attract more deposits in the coming period with lower interest rates and greater lending rates or the effect of the performance of their portfolios in financial markets this year, but there are some stocks in the Z is expected to be a special performance even in light of the current state of instability, such as Commercial International Bank.

Therefore, it is recommended that investors in the financial market are firstly maintaining capital through an expected investment in the defense stocks sectors for the coming period, secondly, continuous monitoring of the performance of the main indicators and individual performance separately, and taking advantage of market declines, especially as the markets usually return to their previous levels once After finishing the crisis, therefore, we must focus on changing the direction of indicators in the medium term, and take advantage of other non-defensive stock jumps in that period.

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