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Tuesday, 1 December 2020

What the markets are doing on 1 December 2020

The EGX30 fell 0.6% yesterday on turnover of EGP 1.8 bn (29.3% above the 90-day average) as foreign investors were net sellers. The index is down 21.6% YTD.

In the green: GB Auto (+4.3%), SODIC (+2.4%) and Egyptian Iron & Steel (+1.6%).

In the red: CIRA (-2.6%), Oriental Weavers (-2.5%) and Eastern Company (-2.2%).

Asian markets are in the green in early trading this morning and futures suggest US and European markets are likely to do the same later today after falling in yesterday’s session.

Down

EGX30

10,943

-0.6% (YTD: -21.6%)

None

USD (CBE)

Buy 15.60

Sell 15.70

None

USD at CIB

Buy 15.61

Sell 15.71

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

8,747

+0.44% (YTD: 4.27%)

Down

ADX

4,964

-0.42% (YTD: -2.18%)

Up

DFM

2,419

+0.82% (YTD: -12.49%)

Down

S&P 500

3,621

-0.46% (YTD: +12.10%)

Down

FTSE 100

6,266

-1.59% (YTD: -16.92%)

Down

Brent crude

USD 47.59

-1.22%

Up

Natural gas (Nymex)

USD 2.93

+3.20%

Down

Gold

USD 1,779.90

-0.46%

Up

BTC

USD 19,378

+6.83%

Moody’s is bearish on EM banks’ in 2021 as operating conditions across Africa are expected to remain difficult throughout next year as banks contend with muted economic activity, the credit rater said in a research note. Emerging market banks with large holdings in government securities stand at a double risk from central banks’ reduced capacity for fiscal support, and the possibility of deposit freezes. A silver lining? Major events like Dubai’s Expo and the World Cup are expected to support banks’ credit profiles and boost business confidence in the Gulf.

POST-OIL- How’s doubling down on hydrocarbons working out for you, Exxon? The US oil giant is taking an axe to its budget and plans to write-off some USD 20 bn of its assets this quarter as it reels from the effects of the pandemic, the FT says.

Division in the ranks sees OPEC+ meeting pushed to Thursday: Oil exporters that make up the loose OPEC+ alliance failed to agree on whether to extend or lift production cuts amid sluggish demand caused by the pandemic, Reuters reports. The meeting, which was supposed to wrap up today, has been pushed to 3 December after the UAE and Russia came out in favor of increasing production from January, a position not shared by Saudi Arabia which favors leaving output levels on hold to stimulate prices.

GLOBAL M&A- S&P Global just sealed the biggest buyout of the year. The financial analytics firm will give Bloomberg a run for its money after agreeing to buy IHS Markit for USD 44 bn in a blockbuster acquisition that will create what the Financial Times is calling a “data and information powerhouse.”

UK bn’aire Phillip Green’s empire is falling: The retail tycoon’s Arcadia Group — owner of Topshop, Miss Selfridge, Dorothy Perkins, Evans and Burton — filed for bankruptcy and called for the administrators from Deloitte yesterday, putting 13k jobs at risk, the Guardian reports.

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