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Wednesday, 23 December 2020

What the markets are doing on 23 December 2020

GAME CHANGER for US capital markets- The US has given the green light to direct listings on the New York Stock Exchange in a move that will surely cut into the feel wallets allocated to investment banks across the pond, the Financial Times writes.

iSheep have plenty to chew over today, including the prospect (once again) of an Apple Car (this time by 2024) and news that Elon Musk tried to shop Tesla to the tech giant, but couldn’t convince CEO Tim Cook to sit down for a cup of coffee. Apple shares are heading into the final days of trading up some 80% year-on-year for the second year in a row. CNBC has more.

US companies are going full George Romero, borrowing a record USD 2.5 tn this year and increasing leverage at investment grade companies to an all-time high. The number of so-called zombie companies — firms whose profits only allow them to meet interest payments on their debt — are nearing historical peaks. The Financial Times says the 2020 bond mania has left balance sheets in a “far riskier” state, as Fed policy leaves companies ever more reliant on emergency liquidity.

Peak 2020: SoftBank is launching a SPAC so it can … buy SoftBank assets. The Financial Times reports that the company wants to raise USD 604 mn of public money so it can acquire a Japanese tech firm it has already invested in. This seems fine…

There’s been a changing of the guard at Saudi’s USD 360 bn sovereign wealth fund as it prepares to step up its involvement in the economy, Bloomberg reports. Among the new faces are Fahad Alsaif (LinkedIn), who has been appointed head of corporate finance, and Rania Nashar, who was the first woman in the country to head up a bank, was tapped to become senior adviser to PIF Governor Yasir Al-Rumayyan.

Up

EGX30

10,656

+0.7% (YTD: -23.7%)

Up

USD (CBE)

Buy 15.64

Sell 15.74

Up

USD at CIB

Buy 15.63

Sell 15.73

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

8,681

+1.7% (YTD: +3.5%)

Up

ADX

5,110

+0.7% (YTD: +0.7%)

Up

DFM

2,481

+0.8% (YTD: -10.3%)

Down

S&P 500

3,687

-0.2% (YTD: +14.1%)

Up

FTSE 100

6,453

+0.6% (YTD: -14.4%)

Down

Brent crude

USD 50.08

-0.6%

Down

Natural gas (Nymex)

USD 2.77

-0.5%

Down

Gold

USD 1,867.10

-0.2%

Up

BTC

USD 23,723.66

+3.8%

The EGX30 rose 0.7% yesterday on turnover of EGP 1.1 bn (19.3% below the 90-day average). Domestic investors were net sellers. The index is down 23.7% YTD.

In the green: Juhayna (+7.3%), GB Auto (+6.9%) and TMG Holding (+3.4%).

In the red: Dice (-3.5%), Export Development Bank (-2.9%) and Qalaa Holdings (-1.8%).

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