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Tuesday, 23 February 2021

What the markets are doing on 23 February 2021

ESG investing is great — if you don’t mind tax avoidance and tech monopolies: ESG investment’s goal is to tackle issues such climate change and board diversity, but some red flags suggest otherwise with taxation being a “blind spot” for the industry, the Financial Times says. The giant tech companies that dominate ESG funds are adept at avoiding taxes yet bad at creating jobs, leading Vincent Deluard, global macro strategist at New York brokerage StoneX, to call for more scrutiny on how ESG ratings are applied. “ESG funds are unconsciously worsening the social and political crisis associated with automation, inequality and monopolistic concentration,” he told the paper.

Assets managed by ESG ETFs have more than trebled in the space of a year: AUM stood at USD 174 bn at the end of 2020, up from USD 59 bn a year earlier, according to ETF data provider TrackInsight.

Musk’s musings catch up with Bitcoin surge: Bitcoin prices dropped 9% yesterday after Elon Musk tweeted earlier this week that the currency may be overvalued, Bloomberg reports. Bitcoin was up by 60% in February alone, prompting observers to warn of the formation of a Bitcoin bubble propped up by excess liquidity. Yesterday’s drop underscored the currency’s volatility, of which sceptics say we can expect more going forward.

Beijing is gradually reining in its monetary support, leading investors to dump Chinese equities and drive the stocks to register their biggest decline in six months yesterday, the Financial Times reports. China’s CSI 300 Index dropped more than 3% from all-time highs last week.

Up

EGX30

11,550

+1.1% (YTD: +6.5%)

Up

USD (CBE)

Buy 15.63

Sell 15.73

Up

USD at CIB

Buy 15.63

Sell 15.73

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

9,078

-0.1% (YTD: +4.5%)

Up

ADX

5,662

+0.1% (YTD: +12.2%)

Down

DFM

2,543

-1.0% (YTD: +2.0%)

Down

S&P 500

3,877

-0.8% (YTD: +3.2%)

Down

FTSE 100

6,612

-0.2% (YTD: +2.4%)

Up

Brent crude

USD 66.29

+1.6%

Down

Natural gas (Nymex)

USD 2.95

-0.1%

Up

Gold

USD 1,811.20

+0.2%

Down

BTC

USD 52,227.84

-8.7%

The EGX30 rose 1.1% yesterday on turnover of EGP 1.63 bn (11.3% above the 90-day average). Foreign investors were net sellers. The index is up 6.5% YTD.

In the green: Eastern Company (+3.0%), Fawry (+2.5%) and Cleopatra Hospital (+2.2%).

In the red: Orascom Investment Holding (-2.7%), Sodic (-1.4%) and Alexandria Mineral Oils Company (-1.2%).

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. © 2021 Enterprise Ventures LLC.