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Monday, 14 December 2020

What the markets are doing on 14 December 2020

The EGX30 rose 0.2% yesterday on turnover of EGP 1.2 bn. Regional investors were net buyers. The index is down 21.2% YTD.

In the green: Orascom Development (+3.2%), Egyptian Iron & Steel (+1.7%) and Dice (+1.7%).

In the red: Edita (-1.6%), Beltone Financial Holding (-1.1%) and Heliopolis Housing (-1%).

Asian markets are largely up this morning and futures suggest Wall Street and much of Europe will follow suit later today.

Up

EGX30

11,004

+0.2% (YTD: -21.2%)

None

USD (CBE)

Buy 15.65

Sell 15.75

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

8,644

-% (YTD: 3.0%)

Up

ADX

5,140

+0.6% (YTD: 1.3%)

Down

DFM

2,546

-% (YTD: -7.9%)

Down

S&P 500

3,663

-0.1% (YTD: +13.4%)

Down

FTSE 100

6,546

-0.8% (YTD: -13.2%)

Up

Brent crude

USD 50.05

+0.2%

Up

Natural gas (Nymex)

USD 2.66

+2.3%

Down

Gold

USD 1,838.30

-0.3%

Up

BTC

USD 19,094.48

+1.7%

Brent crude rose above USD 50 for the first time since March as global lockdowns ease and the hope of a vaccine rollout boosts demand, according to Bloomberg. Oil demand in India, China, and Japan is nearly at pre-covid levels.

How much is Tesla worth? Depends on whether you like Elon. It really does. Wall Street pundits are miles apart when it comes to Tesla’s share valuation, with JPMorgan Chase setting a target as low as USD 90 a share and Goldman Sachs penciling in USD 780, says Bloomberg. “It’s whatever people want to believe Elon Musk is touting,” hedge fund manager Jim Chanos said. The simple explanation for Tesla’s share price, which has ballooned nearly tenfold year-to-date, is that it’s not based on what Tesla currently does, but rather what it can do (or hope to do) in the future: “transform the century-old automobile industry.”

Thematic exchange-traded funds or ETFs tied to economic, geopolitical, or technological trends — could be in for a boost in 2021 as investors are increasingly looking for “narrower ways to play,” two analysts told CNBC’s “ETF Edge” last week. One example is the Renaissance Capital IPO ETF, which benefited tremendously from 2020 unexpectedly turning into a blockbuster year for stock market debuts, especially tech IPOs. The IPO ETFs ties its investors to stock market listings, giving them exposure to significant new entrants.

Another interesting concept is a “fractional share,” a way for small investors to buy into the broader market through pieces of shares in high-value companies including Apple and Tesla. This allows those with capital as little as USD 50 to make gains from trends and even invest in index-tracking ETFs, says the Wall Street Journal. Stock broker Robinhood, which opened over 3 mn new accounts this year, began offering this service in May.

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.

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