Back to the complete issue
Thursday, 10 December 2020

What the markets are doing on 10 December 2020

The EGX30 was flat yesterday on turnover of EGP 1.7 bn. Foreign investors were net sellers. The index is down 21.1% YTD.

In the green: Sodic (+4.2%), Eastern Company (+4.2%) and Orascom Development Egypt (+1.8%).

In the red: Egyptian Iron & Steel (-3.5%), Export Development Bank (-3.1%) and GB Auto (-2.8%).

It’s a sea of red out there this morning, ladies and gentlemen: Asian shares are largely (if not deeply) in the red this morning, and futures suggest Wall Street and most of Europe will follow suit later today.

None

EGX30

11,018

-% (YTD: -21.1%)

Up

USD (CBE)

Buy 15.64

Sell 15.74

Up

USD at CIB

Buy 15.64

Sell 15.74

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

8,660

+0.6% (YTD: +3.2%)

Up

ADX

5,077

+0.3% (YTD: -%)

Up

DFM

2,540

+0.3% (YTD: -8.2%)

Down

S&P 500

3,673

-0.8% (YTD: +13.7%)

Up

FTSE 100

6,564

+0.1% (YTD: -13.0%)

None

Brent crude

USD 48.86

-%

Down

Natural gas (Nymex)

USD 2.4

-0.1%

None

Gold

USD 1,838.70

-%

Up

BTC

USD 18,558.55

+1.4%

Middle East governments could face something of a reckoning in the months and years ahead as low oil prices and spiraling debt heap pressure on public finances, Fitch Ratings said in a note this week. Despite expectations for an economic rebound in 2021, “balance sheets will continue to deteriorate” and the “painful fiscal adjustments” needed to rescue the situation, coupled with the economic effects of the pandemic, could provoke social and political unrest. The ratings agency, which currently has five of 15 MENA sovereigns on a negative outlook, said that even in the higher-rated GCC states, the consequences of covid will “raise questions” about the sustainability of their social and economic models.

Kuwait is a case in point: The ruling Al Sabah clan could be on a collision course with the newly-elected parliament over how the country pulls itself out of its fiscal hole, the Financial Times suggests.

Egypt is still good, though: The ratings agency earlier this year affirmed Egypt’s long-term foreign-currency issuer default rating at ‘B+’ with a ‘stable’ outlook.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.