Market conditions, investment climate and more with XTB MENA’s Farah Mourad

“The Egyptian Pound is still exposed to further decreases due to the outflows of capital and the risk-averse sentiment globally,” says Farah Mourad, Senior Market Analyst at XTB MENA, one of Europe’s leading brokerage houses.

With inflation rates skyrocketing, economies still recovering from the effects of the pandemic, and the global supply chain still dealing with the impact of the pandemic and the Russia/Ukraine conflict, everyone is keeping an eye on market conditions.

We spoke with Mourad on how a day-to-day at XTB MENA looks like and her thoughts on Egypt’s current market conditions, investment climate, and the EGP/USD.

How does your day-to-day at XTB MENA looks like

Now that you’ve asked, I don’t reckon that I had the exact same day twice in a row, so I would just say my day follows those of the markets; I follow market patterns at my job.

Farah Mourad - Senior Market Analyst, XTB MENA

First things first. I pick up my large sugar-free late and reach the office to follow up on the previous day’s closing and Asian session news. Then, I brief the team on the market fundamentals, prepare research notes for news outlets, review economic reports, and prepare for interviews while checking the performance of the assets we provide.

Also, I provide updates to our clients on important market fundamentals and technical analysis. The last part is always challenging as we always try to come up with innovative insights for our clients on a regular basis as we are not only a multi assets broker but an innovative Fintech company as well.

I’m brought back to reality during lunchtime, where I usually have it while watching CNBC’s MAD MONEY tv program in addition to switching between several other business programs.

As for the remaining of the day, I go on with digging deeper into the market data, forming investment ideas to discuss with XTB analysts - over 40 team members worldwide. As the American session heats up, I challenge myself on how the markets will possibly close. The next morning, I try to assess my opinions.

How do you see Egypt and MENA’s current market conditions, and what have been the main factors that have driven them in this direction?

The stock markets in the region have been recovering for some time now thanks to the strong local fundamentals and good company earnings.

These factors have helped the market rebound when lower inflation in the US paved the way for the possibility of a less aggressive monetary policy by the Federal Reserve.

This in turn alleviated the risk aversion that had gripped investors previously. In this regard, the Egyptian stock market as well as others in the region could see increased international inflows.

What is your take on the Egyptian market’s investment climate and the stock market’s current behavior?

The Egyptian stock market is driven by a more optimistic sentiment among investors with a possibly smoother and softer monetary policy in the US. At the same time, the Egyptian central bank’s decision to keep interest rates unchanged has also played a significant role and could help push the market further.

The Egyptian government has also played a big role in propping up sentiments with a bullish attitude towards the market. In this regard, floating public companies could create a strong dynamic as was the case for other markets in the region.

XTB MENA deals with various currency pairs, what is your forecast for EGP/USD?

The Egyptian Pound is still exposed to further decreases due to the outflows of capital and the risk-averse sentiment globally. The aggressive monetary policy in the US has pulled investors away from many markets pushing them in search for safe havens.

However, the currency could see a reversal in fortune if global market conditions improve and international investors return in large numbers. This in turn could help shore the currency and the Egyptian central bank’s reserves.

What should investors keep in mind going forward?

Many factors continue to dominate financial markets among them the US central bank’s monetary policy, which heavily affects sentiments all over the world and is a major market mover.

Investors must take into consideration how the Federal Reserve would direct its policy in response to inflation figures in the US. Inflation levels elsewhere are also important to watch as they affect consumers’ and companies’ performances. The same can be said about oil, which is impacting inflation and fueling volatility in the Middle East markets.