Back to the complete issue
Thursday, 4 March 2021

What the markets are doing on 4 March 2021

It’s Beijing’s turn to sound the bubble alarm: China is likely to see further monetary tightening amid threats arising from “large bubbles” in China’s property and global financial markets, the country’s chief banking regulator has said, according to the Financial Times. “I’m worried the bubble problem in foreign financial markets will one day pop,” he said. “China’s market is now highly linked to foreign markets and foreign capital continues to flow in.”

Turbulence in the US treasury market has exacerbated concerns that the world’s largest debt market — worth USD 21 tn — may be in need of restructuring, the Financial Times reports. A bond sell off last week saw treasury yields soar, prompting big traders to back away from the market and causing a temporary liquidity shock in what is normally one of the most liquid markets in the world. This has prompted calls for regulators to come up with solutions to support the increasingly fragile market, especially as the end of covid-era measures that eased capital requirements for banks threatens to leave it with fewer buyers.

Down

EGX30

11,393

-0.7% (YTD: +5.1%)

Down

USD (CBE)

Buy 15.62

Sell 15.72

Down

USD at CIB

Buy 15.61

Sell 15.71

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

9,310

+0.7% (YTD: +7.1%)

Down

ADX

5,700

-0.2% (YTD: +13.0%)

Up

DFM

2,590

+0.8% (YTD: +3.9%)

Down

S&P 500

3,820

-1.3% (YTD: +1.7%)

Up

FTSE 100

6,676

+0.9% (YTD: +3.3%)

Up

Brent crude

USD 64.20

+0.2%

Down

Natural gas (Nymex)

USD 2.80

-0.46%

Down

Gold

USD 1,712.60

-0.2%

Up

BTC

USD 51,542.58

+5.3%

The EGX30 fell 0.7% yesterday on turnover of EGP 1.59 bn (8% above the 90-day average). Foreign investors were net sellers. The index is up 5.05% YTD.

In the green: Sidi Kerir (+0.7%), EKH (+0.6%) and CIB (+0.5%).

In the red: Pioneers (-7.6%), MM Group (-6.3%) and Orascom Financial (-5.9%).

Asian markets are down in early trading this morning and futures suggest US markets will follow suit later today.

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.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.