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Thursday, 4 February 2021

What the markets are doing on 4 February 2021

Netflix’s MENA rival just hit the jackpot: Regional streaming service Starzplay has received USD 25 mn in debt financing from Abu Dhabi’s Ruya Partners that could pave the way to an IPO. Prior to the latest investment, the company had received USD 125 mn from investors such as US financial services giant State Street and tech investment firms SEQ Capital Partners and Delta Partners since its foundation in 2015.

Kuwait taps wealth fund to rebuff potential liquidity crunch: A growing funding crisis has forced the Kuwaiti government to sell the rest of its performing assets to the sovereign wealth fund in exchange for cash as it looks to meet a monthly budget deficit of USD 3.3 bn, Bloomberg reports. This came as Fitch cut the country’s rating outlook to negative from stable amid “the imminent depletion of liquid assets.” The outlook change signals “near-term liquidity risk,” with the country already contending with the twin pressures of covid-19 and lower crude prices.

US regulators to address the Reddit craze: US Treasury Secretary Janet Yellen will hold talks this week with the heads of the SEC, the Fed, and the Commodity Futures Trading Commission to address the Reddit-fueled market volatility in the equity and silver markets, Treasury spokeswoman Alexandra LaManna told Reuters.

Speaking of the Reddit rally: GameStop’s share price has nosedived in the past week, but closed up 3% yesterday and is now trading hands at USD 92. This came after the shares reached an incredible rock-bound peak of USD 423.

INTERNATIONAL EARNINGS WATCH-

  • Oil giant BP registered a huge annual loss of USD 5.7 bn last year, its first in a decade, following a collapse in global oil demand in the wake of the pandemic, it announced yesterday. The scale of the loss was worse than expected after the company’s 4Q bottom line came in at USD 115 mn, less than half of the USD 285 mn forecast.
  • Siemens saw a 15% uptick in orders during 1Q FY2021, helping adjusted EBITDA to surge 39% to EUR 2.1 bn thanks to a quicker than forecast post-pandemic rebound in China and Germany, the German conglomerate said in its earnings release (pdf).

Up

EGX30

11,619

-0.2% (YTD: +7.1%)

Down

USD (CBE)

Buy 15.67

Sell 15.77

Down

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

8,543

-0.9% (YTD: -1.7%)

Down

ADX

5,675

-0.4% (YTD: +12.5%)

Down

DFM

2,713

-0.4% (YTD: +8.9%)

Up

S&P 500

3,830.17

+0.1% (YTD: +2.0%)

Down

FTSE 100

6,508

-0.1% (YTD: +0.7%)

Up

Brent crude

USD 58.59

+0.2%

Down

Natural gas (Nymex)

USD 2.77

-0.8%

Down

Gold

USD 1,833.40

-0.1%

Up

BTC

USD 38,158.24

+5.9%

The EGX30 fell 0.2% yesterday on turnover of EGP 1.7 bn (17.5% above the 90-day average). Foreign investors were net buyers. The index is up 7.1% YTD.

In the green: Cleopatra Hospitals Group (+3.3%), Qalaa Holdings (+1.5%) and Export Development Bank (+1.1%).

In the red: Abu Qir Fertilizers (-2.4%), MM Group (-2.4%) and Ezz Steel (-2.0%).

Asian markets are squarely in the red this morning, but futures point to a comfortably green open in Europe and on Wall Street later this morning.

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