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Tuesday, 20 April 2021

What the markets are doing on 20 April 2021

GLOBAL M&A WATCH- UK competition watchdog to probe multi-bn acquisition of country’s most valuable tech business: The UK’s Competition and Markets Authority is investigating the potential USD 40 bn acquisition of Cambridge-based Arm Holding by the US’ Nvidia on national security grounds, according to a statement. Arm’s business is seen as vital to the UK’s national security infrastructure, and its semiconductors are used in defense technologies, according to Bloomberg. Nvidia agreed to the acquisition of Arm, which is owned by Japan’s SoftBank, late last year in what could become the largest in a recent series of big-ticket transactions in the semiconductor industry, as demand for electronics surged and supply chain disruptions fueled a global chip shortage.

One of the world’s largest lithium mining groups could be created with the USD 3.1 bn merger of two Australian companies, as demand for the metal essential to battery manufacturing continues to grow along with the popularity of electric vehicles, the Financial Times reports.

Credit Suisse is still reeling from the effects of the Archegos debacle, as two executives from the Swiss bank’s prime brokerage unit joined a growing list of staff departures following the USD 4.7 bn loss incurred by hedge fund Archegos Capital Management, the Financial Times reports, citing an internal memo. Credit Suisse is expected to report a hefty USD 960 mn in 1Q2021 losses because of the Archegos fallout when it officially releases its earnings tomorrow.

BTC and Coinbase slump fuels concerns of waning crypto craze: A basket of crypto-linked equities tracked by Bloomberg fell 9% last week, after BTC prices and shares in newly listed crypto platform Coinbase dipped over the weekend. Despite the concerns, analysts still expect Coinbase to rise 52% over the coming year.

Up

EGX30

10,441

+0.8% (YTD: -3.7%)

None

USD (CBE)

Buy 15.63

Sell 15.73

None

USD at CIB

Buy 15.63

Sell 15.73

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

10,098

+0.5% (YTD: +16.2%)

Down

ADX

6,102

-0.4% (YTD: +21.0%)

Down

DFM

2,633

-0.1% (YTD: +5.6%)

Down

S&P 500

4,163

-0.5% (YTD: +10.8%)

Down

FTSE 100

7,000

-0.3% (YTD: +8.4%)

Up

Brent crude

USD 67.38

+0.5%

Down

Natural gas (Nymex)

USD 2.74

-0.2%

Down

Gold

USD 1,769.50

-0.1%

Down

BTC

USD 53,934.13

-4.78%

The EGX30 rose 0.8% yesterday on turnover of EGP 735 mn (45% below the 90-day average). Foreign investors were net sellers. The index is down 3.7% YTD.

In the green: Pioneers (+2.7%), Ezz Steel (+2.3%) and Palm Hills Development (+2.3%).

In the red: Edita (-4.1%), Cleopatra Housing (-1.8%) and Fawry (-0.9%).

Asian markets are mixed this morning, with the Nikkei and Hong Kong’s Hang Seng in the red and Shanghai and Korea’s Kospi in the green. Futures suggest Wall Street will open in the green this afternoon, while shares in Toronto look set to open down. Shares in Europe look set to open largely in the red this morning.

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