Back to the complete issue
Monday, 8 March 2021

What the markets are doing on 8 March 2021

We’re not on HSBC’s list of emerging markets most vulnerable to a possible Taper Tantrum 2.0. Brazil, Indonesia, Mexico and South Africa are the most exposed emerging economies to rising bond yields in the US, according to bond strategists at HSBC, the Economist reports. All of these countries have a history of running current account deficits while South Africa and Brazil’s large debt piles leave them vulnerable to rising rates. And it isn’t just countries which have borrowed extensively in foreign currencies that are exposed: Foreign investors hold almost half of Mexico’s local-currency debt, making it heavily exposed to outflows of hot money.

Want to read more about Taper Tantrum 2.0? Look no further than our explainer in EnterprisePM.

Spiking oil prices have put the balance sheets of Gulf oil exporters in the clear: Last week’s decision by OPEC+ to maintain production curbs could work wonders for public finances in the Gulf. Brent prices surged to USD 71.14 per barrel after the meeting — a level which analysts say would allow Gulf oil exporters to balance their budgets. “We would see fiscal surpluses for the larger GCC economies,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, tells Bloomberg. “This provides more fiscal space to support economic activity and recovery.”

Up

EGX30

11,558

+2.0% (YTD: +6.6%)

Up

USD (CBE)

Buy 15.65

Sell 15.75

Up

USD at CIB

Buy 15.65

Sell 15.75

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

9,351

+1.2% (YTD: +7.6%)

None

ADX

5,692

– (YTD: +12.8%)

Down

DFM

2,546

-0.9% (YTD: +2.2%)

Up

S&P 500

3,842

+2.0% (YTD: +2.3%)

Down

FTSE 100

6,631

-0.5% (YTD: +2.6%)

Up

Brent crude

USD 71.14

+2.6%

Up

Natural gas (Nymex)

USD 2.71

+0.2%

Up

Gold

USD 1,708.90

+0.6%

Up

BTC

USD 51,285.60

+4.7%

The EGX30 rose 2.0% yesterday on turnover of EGP 954 mn (35.3% below the 90-day average), pulled upward by index heavyweight CIB, which rose 2.7% yesterday at the closing bell. Foreign investors were net sellers. The index is up 6.6% YTD

In the green: AMOC (+7.9%), Sidi Kerir (+6.5%) and Orascom Investment (+6.4%).

In the red: Edita (-1.2%), Eastern Co. (-0.2%) and EFG-Hermes (-0.1%).

It’s a mixed morning for global markets: Japan’s Nikkei is the only major Asian market in the green this morning, with shares in Shanghai, Honk Kong and Korea all starting the trading week in the red. Futures suggest the Dow will open in the green, while Nasdaq and the S&P will both start the week in the red. The picture is similarly mixed across Europe.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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.