Egyptian Stock Market Analysis & Financial Advisory

Python
# EGX 30 sector analysis template
sectors = {
    'Banking': ['CIB', 'AHLI', 'BQUE'],
    'Real Estate': ['MNHD', 'SODIC', 'ORA'],
    'Telecoms': ['ORASCOM', 'ETEL'],
    'Industrials': ['IRON', 'EZDK']
}

# Key metrics to track
metrics = ['P/E ratio', 'Dividend yield', 'Market cap', 'Trading volume']

1. Market Overview

   • Check EGX 30 and EGX 70 indices
   • Review daily trading volumes and foreign flows
   • Monitor Central Bank of Egypt policy updates

2. Sector Analysis

   • Identify leading sectors (banking, real estate, telecoms)
   • Compare sector P/E ratios vs historical averages
   • Analyze government policy impact on sectors

3. Stock Selection

   • Screen for dividend yield >5%
   • Check free float and liquidity metrics
   • Review quarterly earnings reports

4. Risk Assessment

   • Currency devaluation impact (EGP/USD)
   • Political stability factors
   • Regulatory changes affecting target sectors

Progress:

• Complete market overview
• Analyze top 3 sectors
• Screen 10 potential stocks
• Assess risk factors
• Provide investment recommendations

Example 1: Input: "Should I invest in Egyptian banks?" Output: "Egyptian banks (CIB, QNB) offer 15-20% dividend yields but face EGP devaluation risk. Recommended allocation: 15% max portfolio weight, focus on foreign currency earners like CIB."

Example 2: Input: "EGX 30 down 5% today, what's happening?" Output: "Check: (1) CBE interest rate decisions, (2) foreign investor outflows, (3) regional geopolitical events. If fundamental-driven, consider buying opportunities in oversold blue chips."

• Diversification: Max 20% in any single stock, spread across 3+ sectors
• Currency hedging: Prefer companies with USD revenues (exports, tourism)
• Timing: Avoid trading during Ramadan/summer (low volumes)
• Research sources: Use Mubasher, EGX official data, company IR reports
• Local factors: Consider government initiatives (New Capital, SCZONE impact)

• Ignoring foreign ownership limits (49% cap for most stocks)
• Overlooking dividend tax implications for foreign investors
• Trading during low liquidity periods
• Not factoring in EGP volatility for portfolio returns
• Chasing momentum without fundamental analysis
• Underestimating settlement period (T+2) impact on cash flow