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Monday, 22 February 2021

What the markets are doing on 22 February 2021

Asset managers are scrambling to shield portfolios from inflation amid signs that the wave of stimulus unleashed in response to the pandemic last year will cause a pick up in inflation in advanced economies, reports the Financial Times. This is worrying large institutional investors who are now repositioning their portfolios into commodities, financial stocks and short-term government bonds to guard against rising prices eating into their real returns.

Crypto frenzy continues: Bitcoin leapt to a new all-time high above USD 57k yesterday to bring its total market value to more than USD 1 tn. The cryptocurrency’s rally was undeterred by a tweet from Elon Musk yesterday saying that Bitcoin and Ethereum prices “seem high.” Musk, whose tweets about the meme-based cryptocurrency dogecoin helped push its valuation to USD 10 bn, has invested USD 1.5 bn in Bitcoin and plans for Tesla to start accepting it as payment.

Speaking of BTC — the world’s first Bitcoin ETF has been an unsurprising success during its first two days of trading. The Purpose Bitcoin ETF’s trading volume neared USD 400 mn after launching in Canada on Thursday, Bloomberg reports.

Up

EGX30

11,426

+0.4% (YTD: +5.4%)

None

USD (CBE)

Buy 15.61

Sell 15.71

None

USD at CIB

Buy 15.60

Sell 15.70

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

9,086

+0.7% (YTD: +4.6%)

Up

ADX

5,657

+0.2% (YTD: +12.1%)

Down

DFM

2,568

-0.3% (YTD: +3.1%)

Down

S&P 500

3,907

-0.2% (YTD: +4.0%)

Up

FTSE 100

6,624

+0.1% (YTD: +2.5%)

Up

Brent crude

USD 63.53

+1.0%

Down

Natural gas (Nymex)

USD 3.00

-2.1%

Up

Gold

USD 1,784.60

+0.4%

Up

BTC

USD 57,101.80

+1.1%

The EGX30 rose 0.4% yesterday on turnover of EGP 1.25 bn (13.5% above the 90-day average). Foreign investors were net sellers. The index is up 5.4% YTD.

In the green: Pioneers (+4.7%), Ezz Steel (+3.5%) and Ibn Sina Pharma (+3.1%).

In the red: Orascom Financial Holding (-5.3%), Cleopatra Hospital (-2.9%) and Orascom Investment Holding (-2.3%).

Asian markets are up in early trading this morning and futures suggest US stocks will open in the red when markets open later today.

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