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Sunday, 29 November 2020

What the markets are doing on 29 November 2020

The EGX30 fell 0.8% on Thursday on turnover of EGP 1.6 bn (42% above the 90-day average) as foreign investors were net sellers. The index is down 21.4% YTD.

In the green: Dice (+1.9%), Eastern Company (+1.4%) and Emaar Misr (+0.8%).

In the red: Beltone Financial Holding (-2.3%), Madinet Nasr Housing (-2.3%) and EFG Hermes (-2.2%).

Down EGX30 10,981 -0.8%
Down EGX30 YTD -21.4%
Down USD (CBE) Buy 15.60 Sell 15.70
Down USD at CIB Buy 15.61 Sell 15.71
None Interest rates CBE 8.25% deposit 9.25% lending
Up Tadawul 8,693 +0.05%
Down ADX 4,971 -0.34%
Up DFM 2,420 +0.28%
Up S&P 500 3,638 +0.24%
Up FTSE 100 6,367 +0.07%
Up Brent crude USD 48.18 +0.80%
Down Natural gas (Nymex) USD 2.84 -3.99%
Down Gold USD 1,788.10 -1.28%
Up BTC USD 17,808.77 +4.35%

Nigeria is showing us exactly why the EGP float was a good idea. The plunge in remittances into Nigeria may turn out to be exaggerated as expats take advantage of the USD black market to send money home, suggests Bloomberg. Data compiled by EFG Hermes shows that remittances have fallen by some 40% so far this year amid the economic disruption caused by the pandemic. But the presence of shadow remittances fuelled by a contraband market for greenbacks offering more attractive rates for the Naira, makes the pandemic’s true impact on inflows hard to quantify. This was a previously a problem faced by policymakers in Egypt — until the EGP float all but eradicated our black market.

MEANWHILE- HSBC looks to be accelerating its pivot to the east, reportedly considering shuttering its retail banking business in the US in favor of doubling down on its more lucrative activities in Asia, the Financial Times reports, citing unnamed sources it says are familiar with the situation.

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